Bitcoin (BTC) provides you with green electricity: Green Washing? This slogan contains all the necessary ingredients to attract the lightning of the most extreme environmentalists. What if miners were no longer dependent on $ 12,000 BTC to be profitable? This Texas mining company has found the formula to boost its profits.
Your electricity supplied by Bitcoin (BTC)
A mining company of Bitcoin based in Texas uses a fairly specific business model to make profits.
According to an article published by Bloomberg, the society Layer 1 Technologies backed by billionaire Peter Thiel, resells the electricity supplied to the mining center.
In L’State of texas where the price of electricity can sometimes reach 200 USD per megawatt hour, this second activity of Layer 1 enabled the company to generate a return of 700%.
On hot days when daytime temperatures can reach 37 ° Celsius, Layer1 stops its mining operations to supply the city with electricity.
At night, when the price of electricity drops to zero or even less due to excess wind turbines, the company resumes operations.
Return 30% of the power of Bitcoin to the United States
The founder and CEO of Layer1, Alexander Liegl, said his company was fundamentally “Paid to mine Bitcoins.”
The geographic location of the company inWest Texas, where 15% of the electricity is however produced by wind turbines, is a factor favoring the development of this alternative power station activity.
This strategy appears to be linked to a trend to change the interactions between large energy consumers and the electricity grid.
These heavy consumers can adjust their activities to access the cheapest and cleanest energy.
This conversion encourages the use of renewable energies in a system that is still too dependent on fossil fuels.
Liegl asserted that from the outset, the strategy of Layer1 was to focus on selling electricity in the summer rather than mining. This strategy allows Layer 1 to restore to United States the electricity consumed to produce 30% chopping power on the network BTC, by 2022.
According to Liegl, Layer 1 will soon install near Midland, 50 containers capable of producing 100 MW of electricity and extracting 27 BTC.
Power station by day, miner by night: this duplication now allows Layer 1 to cope “comfortably” with tensions in the BTC markets, with Bitcoin now able to drop below USD 10,000 in the short term. The company had a flash of genius that will certainly inspire other mining giants.
Litecoin, welcome in the Silver Age