Layer1 makes 700% gain for selling unused power to people living in Texas.
Layer1 Technologies, a crypto miner in Texas, has succeeded in providing power to Texans for eight times the price it was bought.
Bllomberg reported yesterday (September 1) that Layer1 made almost 700% profits when it sold electricity from its ‘Bitcoin Batteries,’ which serves as the firm’s power reserve for crypto mining.
Layer1 Technologies finds it more profitable to sell power when Texans are in high demand of it to use their air conditions during the summer. It prefers to step down Bitcoin mining operations during the time and sell the power instead for more profit. Layer1 Technologies has a very ready market for its excess power because apart from the heat during the day, power supply from the grid is not cheap in Texas and can even be more than $200/MWH.
The CEO and co-founder of Layer1, Alexander Liegl said: “We’re getting paid to produce Bitcoins.”
Layer1’s location is another reason why this alternative business is a good one. In West Texas where it stays, residents are supplied with power from wind farms. This wind farm supplies 15% of what Texans use. As a result, some other crypto miners apart from Layer1 think this place is a good location for their farms so as to take advantage of power supply during the summer.
The plan to sell electricity in 2020’s summer started in the beginning of the year said Liegl. At the time the mining rigs are not used, Liegl said they are kept inside a non-conductive liquid.
Layer1 decided to go into crypto mining so as to boost the total contribution of BTC supply from the U.S. to at least 30% in the next two years. CEO Liegl mentioned that 50 containers that can produce 100 megawatts of electricity were on their way. By the time they land, Liegl said mining 27 BTC on a daily basis will become a reality.