Energy prices in the Lone Star State tend to be lower than the national average, and this is attracting the attention of more than one digital currency company. Based in San Francisco, Layer1 recently announced a bitcoin mining operation that, according to co-founder Alexander Liegl, will be the first bitcoin mining company in the U.S. “at scale.”
Currently, Chinese miners make up approximately 70% of the cryptocurrency market. Chinese miners are able to benefit from lower electricity prices and an abundance of mining machines produced by local manufacturers.
Layer1 hopes to make an impact on the mining industry by lowering the cost of electricity while optimizing the efficiency of chips. This week, Liegl announced the company had received $50 million of investments from several venture capitalists and industry leaders. These investors estimate the company is worth $200 million.
“We expect our chips to be competitive for at least eight years now…you want to have your own chips in hand. We also have our own electricity substations: effectively that’s as close you can get to owning your own power plant,” Liegl explained.