Peter Thiel-backed Layer1 begins mining bitcoin at its West Texas facility

Quick Take

  • Bitcoin mining startup Layer1 has started mining in its West Texas site
  • The site expects to scale to 200MW within a few months, and aims to capture 30% of total network hashrate by the end of 2021
  • Layer1 raised $50 million from Peter Thiel, Shasta Ventures, and others in November 

Layer1 Technology, a Peter Thiel-backed bitcoin mining startup, has officially launched its operation in West Texas, four months after the firm announced its plans. 

The San Francisco-based firm has brought online several mining containers, each has 2.5-megawatt (MW) capacity and deploys the liquid cooling technology to combat high temperatures in the region. 

Although the firm declined to disclose the exact capacity of its current mining site, it expects to scale the mining facility up to 100 MW within the next few months, capturing more than 2% of the total Bitcoin network hashrate, per a statement shared with The Block. 

Notably, Layer1 CEO Alexander Liegl said they hope to eventually encompass 30% of the total Bitcoin hashrate by the end of 2021 with the existing site and several others that they have acquired. This number, if realized, would overshadow the network hashrate shares of all Bitcoin mining pools, with the leading pools like F2Pool and Poolin currently providing around 18% of the total network hashpower, respecti