FAQ

What is Bitcoin?

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• Bitcoin is a decentralized virtual currency (cryptocurrency) that operates as a commodity that allows users to buy, sell and exchange goods and services without a bank.

• It’s similar to online cash: There are no physical coins or notes.

• Unlike flat or traditional currency, Bitcoin is created, distributed, traded and stored using a decentralized ledger system known as the Blockchain

What is the Blockchain?

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• The Blockchain is a virtual ledger that stores data in blocks linked together.

• The information on the blockchain cannot be altered once created and is visible to all, making it a transparent data storage system.

• The name comes from the way the blocks are chained together in chronological order.

How is Bitcoin Mined?

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• Bitcoin mining is like a competitive puzzle-solving game where miners use powerful computers to validate and add transactions to the Bitcoin ledger.

• The first miner to solve the problem and add the block to the Blockchain earns newly created Bitcoins and transaction fees.

Who regulates Bitcoin?

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• Bitcoin is a decentralized digital currency, which means it is not regulated by any single government or central bank in the same way that traditional currencies are.

• U.S. government agencies treat Bitcoin as both a digital commodity and a virtual currency.

How is Bitcoin Mining related to the Grid?

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• Like many businesses, Bitcoin miners rely on electricity to power their operations.

• Currently, Riot is a large flexible load on the Texas Grid operated by ERCOT.

• The company has long-term power purchase agreements, which allow it to mine Bitcoin, or to sell energy back to the market.

• Riot also participates in ERCOT demand response programs to help stabilize the grid during times of high demand.

We are water conscious

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• Riot’s immersion cooling system does not require freshwater.

• Our Corsicana site has a dedicated retention pond that provides much of the water needed for operations.

• Water is recirculated.

• For context, agriculture uses 70% of the world’s water, and U.S. golf courses alone use double the water of global Bitcoin mining.

Noise Mitigation

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• Riot has taken steps to ensure the least amount of noise pollution as possible.

• Through a unique immersion technique, Riot’s systems reduce noise.

• Overall, the sound coming from the facility will be that of an air conditioner and should not impact the lives of Corsicana residents.

Riot won't drive up your energy bill

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• Riot can shut off operations during periods of high demand.

• Riot, like hundreds of other companies, participates in the Electric Reliability Council of Texas (ERCOT), compensating the organization for lost business while offline.

• This program has no impact on residents or their electricity pricing.

We are pro-freedom

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• The mission of Bitcoin is to empower individuals to be their own bank and have easy access to money that can’t be inflated away.

• Bitcoin offers an alternative to dollar debasement, which is caused by money printing and reckless spending in Congress.

• Bitcoin also stands in opposition to CBDCs — a form of digital currency that would allow governments to surveil spending and even control bank accounts.

• Much of the opposition to Bitcoin mining in Texas is supported by pro-CBDC organizations and politicians.