Layer1 Technologies, a Peter Thiel-backed bitcoin mining startup, has started its mining operations, after announcing the move in October last year, at its mining facility in West Texas with aims to lower China’s dominance in Bitcoin mining industry.
The company announced the commence of the mining in a press release published on Wednesday, February 19. According to the press release, the company has brought online multiple 2.5 megawatt (MW) container and deploys the liquid cooling technology to combat high temperatures in the area.
Layer1 Technologies did not reveal the exact mining capacity of its facility but shows plans to upgrade to 100 megawatts in the coming months and exceed 2% of the total Bitcoin hashrate, with a roadmap to reach 30% by the end of 2021.
According to the company, it is on track to “deliver on its mission to pioneer Bitcoin mining’s use of renewable energy and be the first to enhance Bitcoin’s decentralization.”
The company has developed its own ASICs chips and liquid cooling technology and also running its own electricity substations in Texas. Alexander Liegl, co-founder and CEO of Layer1 Technologies, commented:
“We are already delivering on our vision of making Layer1 the world leader in vertically integrated, sustainable Bitcoin mining. Our factory in West Texas is a game changer in Bitcoin mining. The facility uses custom ASIC chips and patent-pending liquid cooling technology, that enables us to unlock warmer climates – where others cannot – and benefit from the world’s largest supply of low-cost, sustainable local energy.”
The company further said that it geared to lower the China’s dominance in Bitcoin mining industry where 60% or more of Bitcoin mining operations are located. Whereas, US contributes to only 5% of hashrate and almost no mining hardware.
The CEO of the company added:
“We have a long-term vision for Bitcoin mining, building a multi-generational business that is already profitable in the short-run and growth-focused in the long-run to be the biggest player in the space. From hardware to energy, we’ve redesigned Bitcoin mining from first principles to control every profit and cost lever across our technology stack. Far too many mining operations still work from a playbook stuck in 2017; the halving will be a death knell for many of them.”
Chinese miners have the benefit of low electricity costs, and mining is more profitable for them. Some of them even install their hardware in other countries with cheap electricity like Iran.
Lots of criticism has raised about bitcoin because of China’s dominance in the mining industry
Larye1 Technologies, originally based in San Francisco, raised $50 million from PayPal co-founder Peter Thiel, Shasta Ventures, and other cryptocurrency industry leaders to bring wind-powered Bitcoin mining rigs in the US. The company has overall raised $200 million.