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Bitcoin Mining Startup Layer1 Raises $50M from Peter Thiel, Shasta Ventures and Others

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by Daria Rud · 3 min read
Bitcoin Mining Startup Layer1 Raises $50M from Peter Thiel, Shasta Ventures and Others
Peter Thiel. Photo: Fortune Live MediaFollow / Flickr

Bitcoin mining startup Layer1 will run its own power sub-station and utilize solar and wind energy generated on the plains of West Texas.

Layer1, San Francisco-based startup involved in Bitcoin mining, has raised $50 million in an effort to live up its plan to establish farms for mining. The money has been received from such a row of prominent investors including Peter Thiel, an American billionaire and co-founder of PayPal, Palantir Technologies and Founders Fund, and Shasta Ventures, an early-stage venture capital investment firm that invests in enterprise and technology consumer startups.

According to Alexander Liegl, CEO of Layer1, the company will operate its own power sub-station and utilize solar and wind energy generated on the plains of West Texas, 150 miles west of Midland, ‘literally in the middle of nowhere’. To mine Bitcoin, Layer1 will use a proprietary new technology that allows cooling the mining chips and prevents overheating of the equipment.

Alexander Liegl stated:

“According to industry research, over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China. Less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.”

“The future of Bitcoin mining lies in the heart of the United States: Texas. This is where world-class electricity prices, friendly regulation, and an abundance of renewable energy sources meet. It is here that we are rapidly scaling our mining operations to bring as much hashrate as possible back to the United States,” this way he explained why Texas was chosen as a hub of Bitcoin mining.

Layer1 believes that due to their ASIC chips, liquid-cooled mining containers, and power procurement and development they will be able to surpass the People’s Republic of China that is currently dominating the industry of Bitcoin mining and manufacturing of equipment needed for the process.

Liegl added:

“From an ideological perspective, for Bitcoin to grow into its multi-trillion potential, it needs a U.S. company to lead. This ideology resonates with Peter [Thiel] and our other investors.”

According to Layer1 CEO, Layer1 technologies will bring the company to the world’s leadership and make it the biggest Bitcoin miner that keeps all aspects of the process—from chip manufacturing to electricity production to cooling — under control.

About Layer1

Layer1 Technologies Inc. is San Fransisco-based startup set up in 2018. The company has several offices in Asia and Europe. It has the aim to strengthen Bitcoin’s decentralization and to support the usage of renewable energy.

Alexander Liegl stated:

“We believe that in order for Bitcoin to grow into its potential as a multi-trillion Dollar asset class, it needs a company that justifies favorable regulation by further decentralizing the network and leveraging underutilized renewable energy. That company is Layer1.”

The company’s team consists of the founders of Genesis Mining, Blockbase Group, and Layer1 Capital. Their experience and high ambitions will allow the startup to gain a sufficient market share and become the leading Bitcoin miner in the US.

Altcoin News, Bitcoin News, Blockchain News, Business News, Cryptocurrency news
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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