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The miner received 700% of the profit for the sale of energy to the network

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The miner received 700% of the profit for the sale of energy to the network

The miner received 700% of the profit for the sale of energy to the network
CONTENT

  • Data centers make money off idle time

  • Miners use cheap renewable energy

  • Russia can become a mining center in the CIS

International consortium of news organizations developing transparency standards.

One of the American data centers Layer1 made 700% of the profits by selling energy to the grid. In addition, the company aims to generate $ 6.7 million in savings from energy savings..

The miner received 700% of the profit for the sale of energy to the network

Pay not for production, but for downtime

On hot days, the mining factories of the Layer1 company stop their work for about 30 minutes. The energy saved during this period is sold back to the grid by the company, making millions in profits. When electricity prices in Texas surpassed $ 200 per megawatt hour, Layer1 earned over 700% profit, according to Founder and CEO Alexander Ligle..

At night, the company, on the contrary, increases the activity of bitcoin mining, since at this time the cost of electricity drops to zero or even lower due to an overabundance of wind energy. Thus, choosing the time to mine cryptocurrency and sell electricity, Layer1 increased its own profit by 7 times.

“This strategy is part of a trend that is revolutionizing how large electricity consumers interact with the grid. Rather than just passively consuming energy, tech giants and other companies are adjusting their operations hour after hour to gain access to the cheapest, and in some cases the cleanest energy. This move is not only beneficial – it is the key to increasing the use of renewable energy sources, ”commented Ligla’s strategy.

The miner received 700% of the profit for the sale of energy to the network

Google is using a similar strategy. The company strives to balance between the consumption of energy produced by burning natural gas and renewable electricity.

“Flexible loads and devices are the key to going beyond 50% renewable energy sources. This is a necessity. To achieve 70%, 80% or 100% penetration, you need to organize everything that is connected to the network, ”said Brian Janous, general manager of energy and sustainability at Microsoft..

Google, which buys electricity directly from wind and solar farms located near manufacturing plants, is now looking for ways to time the optimal use of electricity to redistribute surplus and free up energy when production stops. To do this, the company redistributed the execution of tasks at different times, depending on the amount of energy needed..

Mining is energy-consuming production

Mining cryptocurrencies really requires colossal energy costs, so miners choose countries with low electricity costs to deploy mining farms. China remains the leader in the number of data centers, accounting for 70% of the hash rate. However, the top five regions attractive for crypto mining also included Russia, the USA, Turkey, Ukraine and Kazakhstan..

The main advantages of Russia for miners remain cheap electricity, cold, as well as the presence of a huge number of unused buildings that can be converted into mining farms.

“We expect Russia to become more prominent in bitcoin mining. The region produces green, renewable and surplus electricity throughout the year, and the government supports such enterprises economically, which bring large mining enterprises such as ours to the region, ”says Igor Runets, CEO of BitRiver mining farm..

The miner received 700% of the profit for the sale of energy to the network

The head of Binance Pool Alisa Xu agreed that in the near future Russia will indeed increase its presence in the mining market, but China is still unlikely to become a real competitor. Lack of infrastructure around power plants operating in the green and renewable energy sector remains the main constraint.

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