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Armenia's $50 Million Crypto Mining Farm

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Armenia’s $50 Million Crypto Mining Farm

bitcoin mining

Crypto mining industry is having trouble these days considering the 2018 bearish market. A lot of miners are turning off their machines especially small-scale crypto miners. In fact, the majority of hash rate from the Bitcoin Network is now coming from large-scale operations in China.

It isn’t surprising why small-scale miners are no longer profitable. Considering the complicated algorithm that needs powerful computers coupled with the fact that the cryptocurrencies are at a bearish trend this year, crypto mining has become a playing ground for big companies.

Armenia’s Crypto Mining Farm

But despite the bearish market, a crypto mining farm in Armenia opened on October 18. The $50 million crypto mining farm is set to mine both Bitcoin and Ethereum. It will make use of 3,000 crypto mining machines. This mining farm is located in the capital of Armenia, Yerevan. It is a project by Arminian real estate investment firm Multi Group Concern and Omnia Tech International Company which is a Malta-based company.

Armenian businessman Gagik Tsarukyan is the one responsible for the $50 million investment. The first floor is going to be dedicated to an IT business center.

This move isn’t surprising since it has already been reported that Armenia is already looking to have its very own Silicon Valley. It is going to be a free economic zone that will help boost the companies in the technology industry.

More Machines to Come

Aside from the 3,000 machines, the company is also set to add around 120,000 more machines in the coming months. According to the chief executive of Multi Group Sedrak Arustamyan, the farm will be operated mainly by Omnia tech. In the past, Omnia Tech experienced partnering up with the Winklevoss led Gemini. According to Arustamyan, “We will also help Omnia Tech with the establishment of the Financial Technology Park and the data exchange center in Armenia”.

According to Robert Velghe, who is Omnia’s tech founder, two companies are looking to provide an investment that is worth $2 billion in mining projects. He said that “We intend to create here a blockchain-based center for the development of new information projects, which will turn Armenia into a high-tech platform”.

Global Crypto Mining Operations on the Rise?

Armenia is looking to have a piece of the pie by establishing a free economic zone. Georgia, which is Armenia’s neighbor, already set up a Bitcoin mining farm two years ago.

Also in August, Russian company Kriptoyunivers announced that it is going to dabble in crypto mining by turning its fertilizer laboratory into a crypto mining firm. It is going to be a 4,000 square meter area in Kirshi which is near St. Petersburg. The entire investment amounts to around $7.4 million. This is considered big news because Russia has attempted to crackdown crypto mining activities. Russia is among the top countries in terms of crypto mining activities. Russia has been known for its cold temperature and cheap electricity that made crypto mining popular in the country.

Is this a good move to have a new mining facility in Armenia? Will it be able to get desired profits or do they also have to wait for another bull run? Perhaps, wait for institutional investors to enter the market?

 

 

Janneke Eriksen

Janneke is a writing ninja and has vast experience in journalism, specifically in the crypto space. As a blockchain believer and avid Bitcoin fan, she’s incredibly excited to share to our readers the latest news around so they are always updated wherever they are.

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