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How Riot Blockchain capitalized on a hot Texas summer to make more money selling power than mining crypto

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How Riot Blockchain capitalized on a hot Texas summer to make more money selling power than mining crypto


On August 3, Riot Blockchain––one of many world’s largest Bitcoin miners––issued an replace on its operations for July that headlined an astounding end result: Riot generated simply as a lot or more cash not producing cash as by minting its staple product.

It was a tough time for Bitcoin. Nevertheless it didn’t look that method from Riot’s banner efficiency. The flagship token’s value had dropped from over $40,000 in April to hover within the low $20,000s throughout most of July. You’d suppose that fall would have hammered Riot’s revenues. However not so: Riot benefited from what’s successfully a second, backup enterprise that doubled its gross sales over what it posted making its personal Bitcoin––the identical end result as if Bitcoin have been nonetheless promoting for $40,000! That profitable sideline consists of curbing output and getting paid for releasing the “standby” energy to stabilize the famously-stressed Texas grid. Among the many wealthy advantages: promoting that liberated electrical energy again to the community at such super-high costs that the in the course of the hours of closure, miners could make multiples the cash from hawking megawatts that they’d get minting cash.

Right here’s how the method labored for Riot in July. Beneath a regime known as “value response” administered by ERCOT, the company that manages the movement of electrical energy for Texas, Riot and fellow miners can select to close down and rechannel their freed-up megawatts to the grid at “spot” or market costs. In July, a heatwave scorched the Lone Star state, forming a “dome” that stilled the air over the windmill farms that furnish an enormous share of the state’s vitality. On the similar time, electrical utilization hit all-time highs as Texans cranked up their AC models. For a lot of hours, spot costs soared so excessive that Riot might promote energy to Ercot for 50 or extra occasions the low mounted value it was paying for juice to spawn Bitcoin.

Riot and different producers additionally mine {dollars} from no fewer than three different Texas “demand response” plans that both pay for curbing electrical energy in emergencies, or scale back its transmissions prices. By darkening its knowledge facilities for hundreds of hours this summer season, Riot pocketed a windfall from these packages that reward miners handsomely for offering reserve energy that helps make sure that the grid runs easily.

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Because of the stoppages, Riot produced simply 318 Bitcoin Bitcoin in July, one-fifth fewer than the 402 it might have generated working at full blast. Therefore, income from the Bitcoin that Riot produces for its personal account amounted to $6.9 million on the signature cryptocurrency’s common value of $21,634. However Riot obtained much more {dollars} from shutting down. The demand response packages contributed a bonanza by way of $9.5 million in “energy credit,” funds that scale back the price of electrical energy that constitutes the huge bulk of its gross mining invoice. Riot doesn’t specify which “demand response” packages clinched the credit. However Lucas Pipes, an analyst for B. Riley, reckons that promoting megawatts again to the grid at these massive spot charges underneath “value response” accounts for many of the good points.

Throughout these 31 days, Riot bought that extra cash for closing manufacturing for 11,717 megawatt hours, or round 14% of its ordinary working time. All instructed, between its Bitcoin output and vitality gross sales, Riot logged income of $16.4 million for July. Needless to say Riot additionally sacrificed Bitcoin output in alternate for promoting energy. Had Riot pumped 24-7 and hatched these extra 84 Bitcoin, it might have amassed $8.7 million from mining as a substitute of the $6.9 million it notched. So by shutting down and diverting electrical energy as a substitute, Riot registered a web achieve of $8.1 million (the $16.4 million it made minus the $8.7 it might have garnered from not promoting energy and simply making Bitcoin), or over 90%.

In impact, the $8.1 million increase from the electrical energy gross sales equates to $964 for every of the 84 foregone Bitcoin. That’s 42% above its all-time excessive of round $680. From one other perspective, its whole income of $16.4 million for the month yields common value of $40,700 per coin based mostly on the 402 it might have made sans the closures. Put merely, by producing much less and promoting energy at enormous costs as a substitute, Riot (image: RIOT, market cap $1.3 billion) successfully reaped twice the worth per coin, based mostly on its potential output, than if it had minted at full capability. Every little thing’s massive in Texas, together with ten-gallon hats filled with dollars-for-powering-down its Bitcoin-friendly packages hand the miners.

Texas is now the world’s Bitcoin capital, and its packages richly profit the miners

Although the July stunner demonstrates how a lot the Texas vitality system can increase profitability, the extra {dollars} gained are deceptively small versus what Riot and different miners can harvest going ahead. Riot is main a crypto-rush that’s making Texas the world capital for Bitcoin mining. An enormous a part of the state’s attraction rests on the sundry packages that make miners numerous cash over and above the take from producing Bitcoin, in alternate for shifting energy to assist stabilize the grid. The latest drop in Bitcoin costs make these demand response bonuses way more invaluable to the miners. The extra Bitcoin slides, the extra hours placing megawatts available on the market yield increased income than minting Bitcoin––offering the miners a terrific technique of diversification, the marvel we simply witnessed at Riot.

A lot of Riot’s manufacturing went off-line just lately resulting from disruptions from its big growth initiative at its Whinstone facility north of Austin. That knowledge heart is believed to reign as the most important mining hub in North America. In July, Whinstone’s “self-mining” capability, the manufacturing for its personal account versus “internet hosting” at a charge for out of doors purchasers that present their very own tools, was round 110 megawatts. By early subsequent 12 months, Riot expects that in-house scale to triple to 350mw as a part of a aim to realize whole capability, together with internet hosting, of 750 megawatts.

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Riot’s additionally constructing a second, much more gargantuan, $333 million facility on a 265 acre web site in Corsicana north of Dallas. Anticipated to open in July of subsequent 12 months, Corsicana will surpass Whinstone at a measurement one gigawatt or 1000 megawatts. Immediately, Cambridge College places world community at 10 gigawatts. If that quantity stays fixed, Riot alone would management 17% of all of the world’s Bitcoin capability by mid-2023. Most of the greatest names in Bitcoin are homesteading as longhorns. Privately-held Bitdeer, managed by crypto pioneer Jihan Wu of China, is mining at a large, repurposed former Alcoa plant throughout the road from Whinstone. Core Scientific (CORZ; market cap: $1.1 billion) is constructing a brand new knowledge 300mw heart in Denton north of Dallas-Ft Price slated for completion in December. In Could, Argo Blockchain of London (NASDAQ: ARBK, market cap: $300 million) began manufacturing at its 200mw Helios heart on a 320 acre parcel in north Texas close to Lubbock. Argo’s additionally unveiled plans so as to add 600mw of manufacturing within the years forward.

ERCOT predicts that whole capability in Texas might attain properly over six gigawatts in 2023. After all, mining’s worldwide scale might develop properly above the present 10 gigawatts if the Bitcoin value rebounds strongly. But when mining exercise stays close to immediately’s ranges, Texas would host one thing like half or extra of the world’s Bitcoin business lower than a year-and-a-half from immediately.

At the moment of falling Bitcoin costs, the Lone Star state’s mega-bucks-for-miners packages is rewarding miners as if the growth occasions by no means ended.

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Several Texas Longhorns Players and National Standouts Missing From College Football 25

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Several Texas Longhorns Players and National Standouts Missing From College Football 25


The college football world collectively rejoiced on Monday afternoon, when the long-awaited and much-anticipated EA Sports College Football 25 video game was released.

Customers who paid a premium price of $99.99 for the deluxe edition of the game were granted early access, while others must wait until the official July 19 rosters to start a dynasty with their favorite team.

And while fans will be looking forward to playing with truly real players in the game for the first time ever, it appears that the rosters of multiple teams – including the Texas Longhorns – are not yet fully complete.

Upon the release of the game on Monday, multiple Texas players were missing from the game, with some of those omissions being a key part of the roster.

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Texas defensive lineman Alfred Collins (95) runs down the field during the Senior Night celebration ahead the Longhorns’ game against the Texas Tech Red Raiders, Friday, Nov. 24, 2023 at Darrell K Royal-Texas Memorial Stadium in Austin. / Sara Diggins/American-Statesman / USA

On offense, the roster was without starting right tackle Cameron Williams, freshman guard Nate Kibble, offensive lineman Malik Agbo, and offensive lineman Trevor Goosby, and tight end Spencer Shannon.

Meanwhile on the defensive side of the ball, the Horns were without starting defensive tackle Alfred Collins, linebacker Mo Blackwell, transfer defensive tackle Jermayne Lole, redshirt freshman defensive tackle Sydir Mitchell, freshman tackle Melvin Hills, and cornerbacks Santana Wilson and Warren Roberson.

On top of that, multiple players who did make it into the game, are misnumbered, such as safety Andrew Mukuba, who should be wearing No. 4 instead of No. 13, edge Trey Moore, who should wear No. 8 instead of No. 31, and defensive lineman Bill Norton, who should wear No. 15 instead of No. 44.

Of course, the Longhorns are not the only team in the country missing players off of the game, including standouts like Ole Miss linebacker Suntarine Perkins, Ohio State edge J.T. Tuimoloau, Miami cornerback Daryl Porter Jr., USC wide receiver Ja’Kobi Lane, just to name a few.

To replace these players, multiple randomly generated players were added to the game instead, making for a more unauthentic experience.

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To make things even more frustrating for players of the game, there is no way to edit the appearance or numbers of the randomly generated players, so they can not be turned into those that are missing. However, this is also understandable as it is likely due to legalities.

So why the omissions? Thus far with each individual case, it is unclear. However, there are likely a variety of factors at play.

Some players may have opted out, while others have yet to officially be added to team rosters, or had issues with the process of being added to the game in some capacity.

That said, all is not lost.

Fortunately, unlike in previous editions of the game a decade ago, EA has the ability to update the game’s rosters, meaning more players should be added throughout the summer before the start of the season.

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Texas man facing execution for 1998 killing of elderly woman for her money

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Texas man facing execution for 1998 killing of elderly woman for her money


HOUSTON (AP) — A Texas man who has long sought DNA testing claiming it would help prove he was not responsible for the fatal stabbing of an 85-year-old woman decades ago was scheduled to be executed Tuesday evening.

Ruben Gutierrez was condemned for the 1998 killing of Escolastica Harrison at her home in Brownsville in Texas’ southern tip. Prosecutors said the killing of the mobile home park manager and retired teacher was part of an attempt to steal more than $600,000 she had hidden in her home because of a mistrust of banks.

The inmate’s lethal injection was planned for Tuesday evening at the state penitentiary in Huntsville.

Gutierrez, 47, has long maintained he didn’t kill Harrison. His attorneys say there’s no physical or forensic evidence connecting him to the killing. Two others were also charged in the case.

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Gutierrez’s attorneys have asked the U.S. Supreme Court to stop the execution, arguing Texas has denied his right under state law to post-conviction DNA testing that would show he would not have been eligible for the death penalty.

His attorneys argue that various items recovered from the crime scene — including nail scrapings from Harrison, a loose hair wrapped around one of her fingers and various blood samples from within her home — have never been tested.

“Gutierrez faces not only the denial of (DNA testing) that he has repeatedly and consistently sought for over a decade, but moreover, execution for a crime he did not commit. No one has any interest in a wrongful execution,” Gutierrez’s attorneys wrote in their petition to the Supreme Court.

Prosecutors have said the request for DNA testing is a delay tactic and that Gutierrez was convicted on various pieces of evidence, including a confession in which he admitted to planning the robbery and that he was inside her home when she was killed. Gutierrez was convicted under Texas’ law of parties, which says a person can be held liable for the actions of others if they assist or encourage the commission of a crime.

In their response to Gutierrez’s Supreme Court petition, the Texas Attorney General’s Office and the Cameron County District Attorney’s Office said state law does not provide “for postconviction DNA testing to show innocence of the death penalty and, even if it did, Gutierrez would not be entitled to it.”

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“He has repeatedly failed to show he is entitled to postconviction DNA testing. Thus, his punishment is just, and his execution will be constitutional,” prosecutors said.

Gutierrez’s lawyers have also argued that his case is similar to another Texas death row inmate — Rodney Reed — whose case was sent back to a lower court after the Supreme Court in 2023 ruled he should be allowed to argue for DNA testing. Reed is still seeking DNA testing.

Lower courts have previously denied Gutierrez’s requests for DNA testing.

Last week, the Texas Board of Pardons and Paroles voted against commuting Gutierrez’s death sentence to a lesser penalty. Members also rejected granting a 90-day reprieve.

Gutierrez has had several previous execution dates in recent years that have been delayed, including over issues related to having a spiritual adviser in the death chamber. In June 2020, Gutierrez was about an hour away from execution when he got a stay from the Supreme Court.

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Authorities said Gutierrez befriended Harrison so he could rob her. Prosecutors said Harrison hid her money underneath a false floor in her bedroom closet.

Police charged three people in this case: Rene Garcia, Pedro Gracia and Gutierrez. Rene Garcia is serving a life sentence in a Texas prison while Pedro Gracia, who police said was the getaway driver, remains at large.

Gutierrez would be the third inmate put to death this year in Texas, the nation’s busiest capital punishment state, and the 10th in the U.S.

___

Follow Juan A. Lozano on Twitter: https://twitter.com/juanlozano70

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Heat advisory continues for North Texas ahead of cooler temps

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Heat advisory continues for North Texas ahead of cooler temps


Temps slowly drop as the sun sets in North Texas

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Temps slowly drop as the sun sets in North Texas

02:45

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NORTH TEXAS — Practice your heat precautions Tuesday afternoon. North Texas has a lot of visitors in town, many of who might not be familiar with this kind of heat. Keep an eye on everyone. Stay out of direct sun if you can, take frequent breaks from the heat, and drink plenty of water.

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Monday was the first 100° day at DFW since the start of the month. We’ve had a week’s worth of triple-digit highs so far this summer.

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This is significantly lower than in the last couple of years.

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North Texas can expect an even hotter day Tuesday, perhaps the hottest day of the year so far.

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North Texas will have another hot day on Wednesday. We should start seeing some rain chances by afternoon that might keep us out of the triple-digits. By Thursday a front moves into North Texas and much cooler weather arrives.

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We are halfway through the summer of ’24. So far? It has been a little bit on the warm side with a little bit more rain than the 30-year normal.

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A significant weather pattern shift is forecast by mid-week. High pressure moves to the west, opening the door for a cold front on Thursday.  

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Instead of a massive heat dome sitting over middle America, typical of mid-summer, there might be a low-pressure system sitting over the midwest by early next week.

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It appears the second half of July won’t be anything like last year. Contrast the weather we got in 2023 in this period with what the European model is predicting for this year for the same period.

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The Climate Prediction Center is also showing a good chance of below-normal temperatures all the way to the end of the month.

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The best days for a chance of free water for your yard look to be Thursday, Sunday and Monday. The 7-day forecast ends with weather not very typical of mid-summer.

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