Armenia Inaugurates First Large-Scale Crypto Mining Farm
The tiny Eurasian country of Armenia inaugurates one of the world’s largest cryptocurrency mining farms, jointly built by Armenian-based holding company Multi Group Concern and Swedish crypto mining leader Omnia Tech Limited.
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$50 Million USD Mining Farm to Mine Bitcoin and Ethereum
According to local news outlet Yerkramas, the newly launched facility is the country’s first sizeable crypto mining farm, set to initially house 3,000 bitcoin and Ethereum mining rigs. The venture soon aims to add another 9,000 cryptocurrency mining rigs. Reportedly, the mining farm will be allocated 50MW from a thermal power plant, with provisions to increase it to 200MW.
The mining facility is based over a two-floor structure, whereby the first level will be used for administrative purposes with the second level reserved for mining equipment. Initially, the project will focus on mining two of the biggest cryptocurrencies by market cap, bitcoin and Ethereum.
Reportedly, the entire project is estimated to cost $50 million. The new mega mining facility aims to put Armenia on the crypto mining map.
Information about the project was first made public in April by Omnia Tech’s Robert Velghe, who revealed that the company was building one of the world’s biggest crypto mining farms in collaboration with Multi Group Concern. As the local partner, Multi Group Concern’s responsibility will be to provide the infrastructure facilities and technical support.
In April, Velghe stated:
“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.”
Cryptocurrency Is Important to Armenia
The significance of the crypto mining project was evident, as the inauguration ceremony held in the capital Yerevan was attended by Armenian Prime Minister Nikol Pashinyan and Multi Group Concern founder Gagik Tsarukyan, said to be a government-connected oligarch. The opening ceremony was also attended by a number of business people from the United Arab Emirates, China, and South Korea.
Billionaire Tsarukyan said:
“Within two days, most of the guests will arrive in Armenia from almost forty countries. This is an important step towards the development of the information technology sector, especially since representatives of foreign business circles are planning to meet with government members to find out the possibilities of new and more ambitious investments In the Armenian economy and expanding the base of cooperation.”
Prime Minister Pashinyan’s presence at the event clearly indicates that Armenia is fertile crypto land and, as such, the government aims to attract crypto business from around the world.
The Region Is Becoming Significant
Eurasian countries are cruising slowly towards mining cryptocurrencies due to the abundance of natural resources to power mining farms. Neighboring Georgia has been in the spotlight as one of the biggest crypto mining players in the region. Bitmain and Bitkan recently hosted the inaugural World Digital Mining Summit in Tbilisi.
Meanwhile, Armenia has not been lagging far behind, with recent reports suggesting that the Armenian Blockchain Forum is mulling developing an economic free zone to foster international blockchain and AI projects.
Do cryptocurrencies offer sustainable economic growth opportunities for Eurasian countries? Share your views in the comments section below.
Images via Pixabay