Bitcoin Mining Giant Bitfury Trims Cooling Demands by 95% with ‘Magic’ Liquid
With cryptocurrency markets struggling, Bitfury Group has immersed its mining equipment in a non-conducive liquid to decrease fees at its 40-megawatt mining plant in Tbilisi, Georgia, as it races to mine the remaining 21 million mineable bitcoins.
The business&rsquos investment in cooling technologies signals the extent cryptocurrency miners are going to chill their energy-intensive computer systems, according to Bloomberg. Some have moved operations to Siberia and submerged them in oil, although a single went as far as burying its rigs beneath the Eurasian steppe.
At a July visit to Bitfury&rsquos Tbilisi web site with a view of the Caucasus Mountains, Bloomberg witnessed 160 mining cooling tanks with extensively engineered fluid.  The organization is employing a liquid from 3M Co. referred to as Novec, which has been utilised to draw water from the desert and contain auto racing fires.
CEO Claims Mining Remains Lucrative
Valery Vavilov, Bitfury CEO, noted that the cooling technology reduces each space needs and power consumption. He mentioned the mining activity remains lucrative and the firm is upbeat about bitcoin&rsquos extended-term prospects.
The cooling system reduces the amount of space needed for mining by a third, according to Kar-Wing Lau, founder of Allied Manage, a cooling technique provider Bitfury acquired. Bitfury also believes there will be demand for the technologies from urban cloud computing providers.
Providing Georgia New Prominence
Bitfury has made the Republic of Georgia, positioned between Europe and Asia, the planet&rsquos second biggest cryptocurrency mining region following China, driven by inexpensive energy, inexpensive land and government tax incentives.
In enhancing the region&rsquos cryptocurrency prominence, Bitfury has turn out to be a player in Georgia&rsquos politics. The business owns the house housing its expanding data center, and it has utilised its leverage to secure agreements for certain blockchain solutions, including facilitating Ukrainian elections.
Remi Urumashvili, Bitfury&rsquos Georgia representative, noted that he was instrumental in advising the organization it would have zero taxation when Vavilov visited the country in 2013. Two weeks later, the company announced plans to open a data center.
Also read: Bitfury inks ‘biggest blockchain government deal ever with Ukraine
Activity Draws Political Scrutiny
When Bitfury sold its mining facility prior to repurchasing it at a discount, some claimed that 1 of the business&rsquos backers, Georgia ex-Prime Minster and billionaire Bidzina Ivanishvili, profited from the sale and stuck taxpayers with the expense of the incentives. Ivanishvili&rsquos political opponents examined the facility&rsquos energy fees.
Legislators have also sought an investigation of Ivanishvili&rsquos connection to a Georgia politician&rsquos son who was indicted in a hack in the U.S. that involved an unlawful bitcoin exchange. The fund&rsquos CEO, George Bachiashvili, said he did not know of an investigation, although the prosecutor did not respond to a comment request.
Bachiashvili said politics played no part in the decision to sell the facility. He mentioned the business was searching to profit from high cryptocurrency rates at the time.
Bitfury noted in February it signed an agreement on Richard Branson&rsquos private resort in the Caribbean to sell the facility to a Hong Kong fintech firm just before repurchasing it. Yew Kiat Phang, CEO of Chong Sing Holdings in Hong Kong, stated he met George Kikvadze, Bitfury&rsquos deputy chairman, and Vavilov at Branson&rsquos British Virgin Island&rsquos resort in 2015. He later sold the facility as he sought to mitigate his risks.
Featured image from Shutterstock.
Follow us on Telegram or subscribe to our newsletter here.
&bull Join CCN’s crypto neighborhood for $9.99 per month, click right here.
&bull Want exclusive evaluation and crypto insights from Hacked.com? Click right here.
&bull Open Positions at CCN: Full Time and Element Time Journalists Wanted.
Published at Thu, 06 Sep 2018 00:05:02 +0000