Layer1 mining company received 700% of the profit from the resale of electricity

The American mining company Layer1 resold electricity with a margin, which is eight times higher than the procurement cost. Bloomberg writes about the interaction of a large user with the energy system.

The publication clarified that in the summer, with an increase in air temperature to 37 ° C, the company was forced to stop mining bitcoins. At night, electricity prices are reduced due to an excess, which allows Layer1 to launch mining equipment at full capacity.

The “Response to Demand” contract with the Texas electricity provider allows Layer1 to sell the contracted Prada releases electricity of the network with profit. As a result, when the cost of electricity in the American state exceeded $ 200 per MW*h, the company received profitability over 700%.

By spring, Layer1 plans to install 50 mining devices that will consume up to 100 MW of electricity and in the current conditions produce about 27 bitcoins per day.

Recall that the Layer1, supported by Peter Tilar, pledged to disconnect mining equipment during the peak load, releasing 100 MW of power for the network of peak loads.

In August, Lancium, specializing in energy consumption by energy consumption, accused Layer1 of violating patent law due to the adopted model of regulation of electricity demand.

Also recently, Layer1 was convicted in deception of investors. The identified inconsistencies relate to the amount of the funds raised and the composition of the founders team.