BITFURY Group Guzzles 5 Times more Electricity than Tbilisi Metro and 2 Times more Power than Georgian Railway

access_time2018-02-13 14:59:36

Bitfury Group consumes an  average  of 27-28 million KWh / h of  electricity a month. This is almost five times more than Tbilisi Metro and twice as much as the electricity consumed by the Georgian Railways.

The Tbilisi Metro guzzles on average of 65 million kWh a year (about 5,4 mln kWh per month) and Georgian Railway - 13-15 mln KWh / h a month.

"BitFury operates in Georgia and is one of the biggest players in the Bitcoin mining sector. According to the data of 2016, BitFury accounted for 15% of all  bitcoin mining, " Western media reported  a few weeks ago.

Besides Georgia, the bulk of  bitcoin mining is done in China and America.

During t mining, as a result of the complex mathematical algorithms, the computer generates new bitcoins. Over time, bitcoin mining becomes more and more difficult, and for successful mining more electricity is needed. More energy means increased costs. That is why, in order to optimize expenditures, mining   is reasonable in the countries with cheap electricity.

At the time when Georgia has  the world’s third largest bitcoin mining  pool, which coincided with the increase in tariffs on electricity, experts, politicians and the whole society had a number of question marks over  Bitfury Group's activity in Georgia, especially regarding electricity consumption and preferential tariffs.

In response, BITFURY published information on the costs of the mining center located in the Tbilisi Free Economic Zone (FEZ).

 


It turns out that the tariff for the company is currently 13. 65 tetri per kilowatt, until the end of 2017, that is, before the rise in electricity prices, it was 12.3 tetri. At the same time, BITFURY does not pay VAT, which is 2. 46 tetri per kilowatt.

 

As the media reports, in December  27 million kWh worth GEL 2. 2 million were consumed on the production of bitcoin s. In November, the company's energy expenses amounted to 28.5 million kWh worth GEL 3, 5 million.

 

The company also states that former Prime Minister of Georgia, billionaire and head of the ruling party Bidzina Ivanishvili has nothing to do with BITFURY and the Georgian Co-investment Fund.

 

"Within 3 years we have invested $ 140 million in Georgia and have employed 180 people, 100% of employees are local citizens, and the average salary of employees of the mining center is GEL 2,500. We did not enjoy any privileges in obtaining electricity, and always paid at a market rate. As for the Tbilisi Free Economic Zone, it operates according to the same rules and laws as other  economic zones in Georgia - in Kutaisi and Poti, " BITFURY states.

 

BITFURY owns a bitcoin  farm on the outskirts of Tbilisi, on an area of 18 hectares, where a free economic zone was created. The power capacity of the data center is 40megawatts.

 

the company owns another mining center  in Gori, whose capacity is half less.





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