Despite the lengthy bearish cryptocurrency market that has forced many backers and businesses out of the crypto industry, some investors are still unshaken about the decline in bitcoin price, which is currently below $8,000.
Last week, billionaire Peter Thiel, a venture capitalist and co-founder of global payment giant PayPal, alongside other industry players invested millions in Layer1, a San Francisco-based bitcoin mining firm that uses renewable energy for its operation.
According to a Forbes report, Layer1 announced that it raised $50 million from Thiel, Shasta Ventures, and other undisclosed investors.
The investment, adding to the $2.1 million Layer1 previously raised in a funding round, will help the firm to fund its cause of becoming a global leader in the bitcoin mining sector while competing against its Chinese counterparts.
China is known for its dominance both in bitcoin mining operations and in the production of the hardware required for the mining process.
“Less than 5% of bitcoin’s hashrate and 0% of hardware production are located in the United States,” Alexander Liegl, co-founder and CEO of Layer1 said in a Medium post while announcing the new $50M funding.
With research showing that 100% of bitcoin hardware is being produced and as much as 60% of the current bitcoin mining operation is being conducted in China, many believe that the US will not be able to compete with the Asian country in bitcoin mining.
Layer1, however, aims to change that notion. Launched in 2018, the firm now looks to usurp bitcoin mining power from China in all aspects – from hardware production to cooled mining containers and power production.
Layer1 seeks to turn Texas into a global mining hub. The firm has reportedly been procuring land in Texas for its mining infrastructure.
“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 hash rate as possible back to the United States,” Liegl said.
While Layer1 is making an entrance, leading bitcoin mining hardware and software maker, Bitmain, announced last year that it would be launching a crypto mining facility in Texas.