Kerrisdale Capital despatched a criticism about crypto miner Riot Platforms to Texas officers over considerations associated to security hazards and gear imported from China
The corporate made the criticism in a on June 5 letter addressed to Navarro County Texas Decide H.M. Davenport Jr. and 4 commissioners.
Kerrisdale cited a former operations specialist at Riot’s Rockdale facility who described harmful spills, unsafe electrical gear, and an absence of protecting gear use.
The previous worker mentioned that administration didn’t care about his security considerations.
Kerrisdale famous that in 2022, Riot used ExxonMobile’s Spectrasyn 2C as an immersion coolant, a product that ExxonMobile doesn’t listing to be used in knowledge facilities.
It mentioned ExxonMobile has since launched merchandise geared toward knowledge heart use and urged officers to find out which coolant Riot at present makes use of at its Rockdale and Corsicana facilities.
US manufacturing claims questionable
Kerrisdale additionally raised considerations a few $453 million buy settlement for mining gear from the Chinese language producer MicroBT.
Riot allegedly claimed that the acquisition would create jobs as a result of Pennsylvania amenities would manufacture the mining units. Nevertheless, based mostly on photos obtained by Kerrisdale, the US amenities assembled elements imported from China.
Kerrisdale added that MicroBT’s US producer, Synos Corp., is extremely automated and has few positions for extremely expert staff. It alleged that MicroBT primarily intends to bypass import tariffs reasonably than make use of US staff by means of Synos.
Kerrisdale disclosed a battle of curiosity on all points, stating that it has taken up a brief place on Riot’s inventory and can notice features if Riot inventory decreases in worth.
Texas vitality grid
In a separate funding report, Kerrisdale criticized Bitcoin mining extra broadly, calling it “simply among the many worst enterprise fashions” and alleged that Riot has by no means produced optimistic money flows.
The corporate additionally commented on mining’s influence on the Texas electrical grid, writing:
“We consider Riot traders are oblivious to shifts in state and native politics and headline threat as we strategy one other summer season which can check Texas’ fragile electrical grid.”
Kerrisdale linked a Dallas Morning Information report stating that heightened summer season demand is linked to air conditioner use. Costs are anticipated to rise over the summer season.
Texas was the topic of one other mining and energy-related challenge earlier this yr. In February, the Texas Blockchain Council (TBC) and Riot challenged an government order that may have required mining companies all through the US to report vitality use intimately.
The federal government companies largely halted the survey by March.
