Saying that they make more than 700 percent profit from energy sales, Layer 1’s CEO said, “We are literally getting money to produce Bitcoin.” says.
In the North American continent, which has been trying to catch up with China in Bitcoin mining recently, a brand new application has been implemented in mining and electricity consumption.
In the US state of Texas, a Bitcoin mining company backed by dollar billionaire investor Peter Thiel shut down data processing centers for 30 minutes. In this short time, the company made money not from Bitcoin, but from selling energy.
Electricity by day, Bitcoin by night
Speaking to Bloomberg, Alexander Liegl, founder and CEO of Layer 1 company, stated that they can sell their contracted energy resources back to the grid profitably during hot and windless days when the turbines are not running. He even recently said that Layer 1 made more than 700 percent profit when prices in Texas hit $ 200 per megawatt.
At night, prices drop to zero, or even below, when there is an excess of electricity with the power provided by wind energy. In this case, the company reduces operations to a minimum.
“When it comes to this level, we get money to produce Bitcoin,” says Liegl.
This strategy is seen as a strategy for major electricity producers that will radically change the relationship with the grid. Technology giants have now begun to adjust their operations hour by hour to access the cheapest and, in some cases, the cleanest power, instead of simply consuming it passively.
This situation is not only profitable, but also increases the use of renewable energy. Currently, grids are dependent on fossil fuels and natural gas when demand peaks. When large companies adjust consumption, wind and solar can handle much of that burden.
“Flexible devices that make the transition easy are the key to switching from 50 percent to renewable energy,” said Brian Janous, head of the energy and sustainability department at Microsoft. “You have to manage everything connected to the grid like a conductor for 70, 80 or 100 percent efficiency,” he said.
However, there are regulatory barriers in all these matters. The way companies obtain energy to maintain their income levels are also regulated. These regions include California and Texas.
Of course, progress never stops. Power devices, smart meters and artificial intelligence can sense market prices in real time and maximize the transition to renewable energy.
Google will also adjust based on time and location
Google, which buys energy from wind turbines and solar panels, is also considering adjusting the energy received over time. “Demand in energy is very important,” said Michael Terrell, energy market strategy manager at Google. We adjusted our tasks according to various time periods of the day. We want to arrange the uploads according to location and time. We are trying to prepare the machines for this situation. ” said.
Bitcoin mining, on the other hand, may not seem pro-natural due to the consumption of electricity generated from fossil fuels. The Layer 1 company is setting up its power grids in one of the windiest regions of the USA, drastically reducing this situation with wind power. Depending on the energy requirement, the working capacity of the machines can be lowered or increased.
The bill will decrease by $ 6.7 million
Texas has not seen major increases in electricity prices this year as they did last summer. Layer 1’s flexibility continues to save the company money and significantly reduce costs. The firm with a long-term energy purchase contract; If production stops for half an hour during the hottest days of June, July, August and September, it saves approximately $ 6.7 million in costs.
Next spring, the company will launch a large number of cryptocurrency machines in Texas, and these devices are expected to consume 100 megawatts of electricity. Thus, 27 BTC can be produced daily. In the period when money cannot be made from Bitcoin production, the electricity market will come to the rescue of the company.
CEO Liegl commented, “More capacity, bigger size, more money”.