A $100 million mining farm has been built in Ukraine… and videos are rendered on it

The Liga.net portal reported that a data center with 17,000 video cards in Kropyvnytskyi, Ukraine, has changed its business focus due to a decline in interest in mining. Disclaimer: Today we will talk about Mining Express, a company that can hardly be called reliable. Why: It uses marketing in its business model and operates on a principle comparable to pyramid schemes. In addition, the information provided by the project team about the technical characteristics of the mining farm and the prices for its maintenance is completely inconsistent with the current market conditions. The firm is headed by Edelweiss Investment Trading Company, which is located in Hong Kong and has an authorized capital of 100 thousand hryvnias. Its ultimate beneficiary is a Brazilian born in Japan named Carlos Fuziyama. It should be noted that his first partners in our country were entrepreneurs A. Kolesnyk and N. Maksymiv from Ivano-Frankivsk, whom he knew from the international MLM business, which raises some doubts about the organization’s ability to operate. Carlos says he invested more than $100 million in the data center. The video cards he bought can mine cryptocurrencies such as Ethereum and are used for cloud computing. The data center itself contains several transformer substations. The founders of the Dinaline group of IT companies, O. Krot and Y. Lazebnikov, acted as technical contractors for the same company called Mining Express in this project. These people provide software solutions for rendering and ventilation systems for the data center. The founders of Dinaline helped Carlos make the decision to use special equipment for cloud video rendering in 2018. At that time, the digital currency market was in decline, and Ether mining stopped bringing income to miners. O. Krot, Dinaline’s general partner, said: “This type of business is becoming increasingly popular, and its approximate profitability is 30%. The largest movie producers use remote video cards to process their own material. It was in October 2018 that the first rendering contracts were signed.” According to Mr. Krot, Dinaline assisted Carlos in registering a legal entity in Ukraine. It is this legal entity that receives regular income in foreign currency for virtual server rental. The organization’s taxes usually amount to about 30 million hryvnias annually. Although Dinaline advised the Brazilian to work only with the data center, Fuziyama launched a special website miningexpress.com.ua in our country. It is believed that it was created by the Ukrainian partners we mentioned earlier. Mr. Maksymiv made an official confirmation that he is interested in developing the mining business. He said: “Mining Express plans to significantly expand its capacity, launch a new digital currency called Ethereum Express, expand its business in Zaporizhzhia, and find an opportunity to enter into direct contracts with nuclear power plants after the electricity market becomes free in our country.”