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In recent months, out in the hardscrabble land of west Texas, the company has been busy erecting steel boxes think shipping containers stuffed chockablock with high-end processors submerged inside cooling baths of mineral oil. By this fall Layer1 will have dozens of these boxes churning around the clock to transform megawatts into a stream of Bitcoin. Forbes takes privacy seriously and is committed to transparency. I'd like to receive the Forbes Daily Dozen newsletter to get the top 12 headlines every morning. This is a BETA experience. Layer1 is a cryptocurrency startup backed by the likes of billionaire Peter Thiel. As for Layer1, Liegl says his next step is to vertically integrate into financial products, including Bitcoin derivatives and more. Beause thanks to a glut of natural gas and a forest of wind turbines, power there is among the cheapest in the world — which is what you need for crypto. Turns out that running a phalanx of Bitcoin miners is a great way to arbitrage those peaks. Christopher Helman Forbes Staff. Tracking energy innovators from Houston, Texas. You may opt out at any time. Forbes reporter since Please help us continue to provide you with free, quality journalism by turning off your ad blocker on our site. I agree to receive occasional updates and announcements about Forbes products and services. All Rights Reserved.{/INSERTKEYS}{/PARAGRAPH} Edit Story. We will never share your email address with third parties without your permission. Thank you for signing in. {PARAGRAPH}{INSERTKEYS}If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next! Most Popular In: Energy. It was only the third time in history that Texas power hit that level. Christopher Helman. Two decades ago industrialist Charles Hurwitz bought up power-hogging aluminum smelters in the Pacific Northwest and made more money reselling electricity than making metal. Already this year west Texas has seen a string of degree days. Bitcoin miner Layer1 is turning that dream into reality — having figured out how to make money even when its machines are turned off. Why west Texas?