These racks of high-density Bitcoin mining rigs stretch the length of the building in the first BitFury hashing center in the Republic of Georgia. (Photo: BitFury)

Bitcoin Hardware Player BitFury Enters Cloud Mining With 20MW Data Center

BitFury, a major Bitcoin hardware vendor, has entered the hosting and cloud mining business. Fueled by $20 million in recent venture funding, the company is rolling out a global data center network, anchored by a new 20 megawatt facility in the Republic of Georgia. The announcement is bound to fuel the company’s status as a contender to be the first major Bitcoin IPO.

BitFury is a leader in the fast-growing market for specialized semiconductors for Bitcoin transaction processing, commonly known as mining. BitFury ASICs are well known in the mining world and the company is a major supplier of chips for some of the largest players in industrial mining, including several who will serve as anchors in its new facility in Georgia. The company estimates that 40 percent of all Bitcoins are mined using its chips.

With its entry into hosting and managed mining, BitFury reinforces a trend in which Bitcoin hardware vendors are becoming vertically-integrated one-stop shops, handling everything from chip design to data center deployments.

“Mining has become more than just hardware, and we are excited to offer managed services to enable customers to benefit from our specially designed data centers and cheap energy prices from clean energy sources,” said Valery Vavilov, the company’s CEO.

BitFury has deployed data centers in Finland and Iceland, in addition to the new site in Georgia, which it says was deployed in about 30 days. That speed is possible because the company uses designs known as “hashing centers,” which combine high density and low redundancy and are often built in warehouses or other powered shells. Here’s what the facility looks like inside:

BitFury data center

In the broad hot aisle in the BitFury data center, hot air exits the back of the racks and is vented through the roof of the coop-style building. The clear plastic barriers above the racks prevent the hot air from mixing with the cold aisle. (Photo: BitFury).

“Data center operations will become very important” in Bitcoin mining, said Marc Aafjes, chief strategy officer at BitFury. “I think that will be a differentiator in the near future.”

CryptX and DigitalBTC are among the first clients using the new managed mining services offered by BitFury. Cryptx says its PetaMine operation controls about 2 percent of the global Bitcoin hash-rate (the number of Bitcoin calculations that hardware can perform every second).

“Professional hosted mining operations are the future of this market,” said CryptX CEO Bert Valkenborgs. “CryptX operates in this space and has chosen BitFury’s hosted mining services for its project, PetaMine. We have worked together with BitFury on several occasions and we are very pleased with this business relationship.”

There’s more facilities like these in the works. Bitcoin mining operations are expected to spend at least $600 million to deploy infrastructure in the second half of 2014. BitFury raised $20 million in funding in May, which CEO Vavilov said “validates our strategy and brings us closer to our aspiration of becoming the world’s first publicly listed Bitcoin company.”

In another recent example, CoinTerra, one of BitFury’s competitors, told us earlier this week that it is building a 20-megawatt data center in Canada. This will be the first purpose-built data center for the company, which has been relying on data center providers. It recently signed a major colocation deal with CenturyLink Technology Solutions.

BitFury was founded in 2011 and currently has more than 40 employees working at offices in San Francisco and Amsterdam.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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  1. gyrfalcon

    What a waste. It does nothing but burn energy without purpose. Hopefully the sham will be exposed . Think of the good that could have been done if people devoted CPU power to one of these projects instead of WasteCoin...

  2. gyrfalcon

    Correct link:

  3. Owen

    These are dedicated asics that have just one algorithm they can perform - bitcoin mining.

  4. Wood beams in a datacenter? I don't think that's a good idea...

  5. sergio

    it is not a waste, since it helps verify transactions on the bitcoin network, and I would say it is a lot more efficient than our current banking system.

  6. dan

    Love how helping solve the worlds financials problems one hash at a time is a sham. What about the energy you use to power your car, heat your home, run your electricity GYRF? What utility is that to me? If I could trade it, I would much rather have the energy dedicated towards securing my finances.

  7. This mine (and many other mines) use renewable energy that does not pollute the environment. More importantly, the energy would otherwise not be used. Look at Washington State: the utility districts are selling unused (!) power for cheap, and the miners are flocking in. Once this cheap electricity is used up, the utility districts are going back to market prices for new customers. Miners then start looking at other places such as Iceland or the Republic of Georgia etc - where the same happens on the large scale. "It can be boldly stated that Georgia is a "hydro powered" country. On average, 85% of the country's total energy consumption is supplied by domestic hydropower plants. Despite this, Georgia has huge untapped hydropower potential remaining. The country's natural wealth is comprised principally of water and water resources, and its hydroelectric potential per capita ranks among the world's greatest, with at least 300 rivers capable of hydropower potential of about 20 TWh annually." From:

  8. Theodór Hertervig

    I worked on building that building..... it´s in Iceland not georgia.

  9. jmelnick

    the above pic is from 20mw georgia... below is iceland thats true... as for a sham comment from the moron gyrfalcon - who is stuck in 80s.. welcome to the evloution of money