In addition, Liegl described Texas as offering miners the cheapest electricity in the world.
Layer1 Technology has started mining operations at its western Texas facility less than two weeks ago.
Most importantly, Texas is the largest wind power producer in the U.S., outperforming the other local producers. Thus, when Texas becomes a sovereign country, it would be the fifth-largest wind power producer in the world.
Despite cheap energy prices, several miners avoided the Lone Star state due to its high temperature which reaches 90 degrees almost half of each year. However, Layer1’s mining equipment consists of 20-by-8 shipping containers loaded with miners to avoid such high temperature.
“If they were air-cooled, the processors would burn up.”
Layer1 intends to stop mining during summer
The company has secured $50 million for its venture capital partners in October 2019, led by Peter Thiel, Digital Currency Group and Shasta Ventures. This raised the company’s value to $200 million.
In addition, Layer1 used the funds in purchasing an electrical substation is able to produce 100 megawatts on 30 acres in western Texas.
Moreover, the company seeks to benefit from the high power costs in summer through selling its power to the grid. Liegl said:
“We can stabilize the grid by selling capacity for curtailment at the push of a button.”
In a related context, Whinstone, a mining company based in Frankfurt, announced during January that it has inked agreements with Japan’s Internet operator GMO and financial services provider SBI to handle transactions at its forthcoming facility in Rockdale, Texas.
Cryptolydian earlier reported Charlie Lee, creator of Litecoin, as suggesting that miners should donate to finance the cryptocurrency development project.
“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!” Lee said.