Ukrainian Owned Kentucky-Based steel plant Secretly Mining Bitcoin

Ukrainian Owned Kentucky-Based steel plant Secretly Mining Bitcoin

In the news reported earlier in July, CCMA, a steel plant co-owned by Ihor Kolomoisky and his business partner, Hennadiy Bogolyubov was closed down, and all of its staff were laid off. In a twist of fate, the premises of the 70-year-old steel plant is now used for mining cryptocurrencies to generate revenue, according to a new report gathered.

The new information was gathered by reporters of RadioSvoboda.org who confirmed that a former worker of the steel plant said that an entire warehouse of the steel plant was converted into a data center with a lot of computers being installed in it. Another staff whose name was also withheld confirmed that the warehouse is estimated to have thousands of computers that are mining digital currencies day and night after the computer was “brought in bulks” recently to set up the center.

CCMA re-organization was fueled by revenue generation

CCMA’s decision to generate revenue via cryptocurrency has not been hidden with the firm signaling in July that it could make such move when it invited a third-party firm to install computer centers in the premises. It is not sure that the firm will recall most of its old workforce back considering that a data center mining cryptocurrencies do not need that many workers.

An official spokesperson of CCMA spoke to the press earlier and believed that the firm interest in diversification of revenue is borne out of the expected exponential growth of both artificial intelligence and the blockchain industry in the next decade. He further stressed that CCMA would not shy from making profits off the artificial intelligence and blockchain technology market excepted to hit at least $20 billion by 2030. He concedes that the success of the first pilot program is a drive to the expansion of the CCMA.

CCMA owners are still facing a civil lawsuit

The year had witnessed a lot of influx of crypto mining companies in the United States. Analysts believe that the abundance of cheap electricity in the country could likely be the reason behind the influx. The Tennessee Valley, USA, had witnessed at least five major crypto mining operation with CCMA being the latest in the region.

CCMA owners, Kolomoisky and Bogolyubov, are still facing a civil lawsuit in the US for laundering billions of dollars into the country after acquiring a falsified loan in Ukraine. The partners have denied all allegations and are still sorting it out in court.

CCMA was founded in 1949 and before its conversion was headquartered in Calvert City, Kentucky, USA. The company before its closure was a leading producer and supplier of high-grade ferrosilicon alloys, elements essential in the manufacturing of iron and steel.

David Pražák