Layer1’s Journey Begins in Texas
Layer1 Technologies has officially activated its West Texas mining facility. With $50 million raised from investors like Thiel, Shasta Ventures, and the Digital Currency Group, the ambitious startup isn’t just playing the short game.
A Massive Ambition: 30% Hash Rate
The young company has its sights set on the enormous goal of capturing 30% of the global Bitcoin hash rate by the end of 2021. Currently, more than 60% of Bitcoin mining is concentrated in China, which raises serious flags about national security. Layer1 argues that bringing a significant portion of mining operations back to U.S. soil is not just necessary—it’s critical for maintaining competitive sovereignty over this emerging asset class.
Short and Long Term Goals
In the preceding months, Layer1 aims to ramp up its operations to 100 megawatts of power, achieving a modest 2% share of the hash rate initially. It’s a strategic play; while not overly audacious, it lays the groundwork for future growth by establishing a sustainable operation from the get-go.
Sustainable Innovations in Mining
Emphasizing a shift towards sustainability, Layer1 focuses on manufacturing its entire mining infrastructure from scratch. The company is working on proprietary ASIC chips and liquid-cooled mining containers that they claim can exploit warmer climates with low-cost energy efficiently. Interestingly, while this custom equipment won’t hit the market until mid-2020, Layer1 is leveraging third-party machinery to stay afloat.
Control Over Costs: A Survival Strategy
Layer1’s co-founder and CEO, Alexander Liegl, argues that the company will thrive as many existing operations buckle following the anticipated Bitcoin block reward halving in May. By ousting outdated 2017 methods and controlling all facets of the technology stack, Layer1 aims to wield the profits and mitigate the costs effectively. “The halving will be a death knell for many of them,” he quipped, highlighting the firm’s strategic advantage.
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