Alex Liegl, the CEO of the mining company Layer1 Technologies, is convinced that the American state of Texas can offer “the cheapest electricity prices in the world for large companies”.
Layer1 began mining operations in the western part of the country just under two weeks ago, with several 2.5-megawatt computers going online. By 2022, Layer1 plans to be responsible for 30% of Bitcoin’s total hash rate (BTC).
The state of Texas is the largest wind energy producer in the United States, producing more wind power than the second, third, and fourth largest states combined. If Texas were its own country, it would be the fifth largest producer of wind power worldwide.
Although this fact also means that much cheaper electricity is available for crypto mining, the industry has largely avoided the US state, as particularly high temperatures are reached here in summer. In order to counteract this heat, the mining computers from Layer1 are embedded in large containers that are filled with a non-conductive liquid.
“If we cooled our processors with air, they would burn up,” as Liegl explains this consideration.
Layer1 plans to suspend mining in the summerIn October 2019, Layer1 raised $ 50 million in investment capital, with German Peter Thiel being one of the main investors along with the Digital Currency Group and Shasta Ventures.
Thanks to the financial injection, Layer1 was able to buy up a substation that is located in western Texas and can convert up to 100 megawatts. As a result of this acquisition, goodwill has increased to $ 200 million.
Layer1 also wants to take advantage of the rising electricity prices in summer, since its own electricity can be fed into the main network if necessary to generate additional income.