Ukraine Billionaire’s Closed Kentucky Steel Plant Has Been Mining Bitcoin On The Side

A defunct Kentucky-based steel plant that belongs to Ukrainian Oligarch Ihor Kolomoisky is said to have allegedly pivoted towards Bitcoin mining after shutting down operations in July. CC Metals & Alloys (CCMA) has been mining Bitcoin within its premises, according to a report by Kolomoisky runs the steel plant in collaboration with Hennadiy Bogolyubov, his business associate.

An anonymous source who previously worked for CCMA confirmed that the main plant shut down due to COVID-19 implications, but Bitcoin mining operations are still on. The steel plant was allegedly revamped with Bitcoin mining equipment, converting the warehouse into a data center filled with computers.

While it is not clear the number of resources deployed, an employee at CCMA revealed computers were delivered in ‘whole trucks.’ These mining machines are mining crypto round the clock, being part of a shift from CCMA’s 70-year fort in the steel industry.

Notably, Kentucky’s favorable electricity costs have been an incentive for crypto mining firms looking to set up shop. In fact, CCMA is not the only crypto mining firm in this region; a couple of other firms have pivoted in the same niche.

A CCMA spokesperson said that the firm took an opportunity to diversify its sources of income and will probably scale in the AI and blockchain sectors based on the first pilot,

“Both artificial intelligence and the blockchain are high-energy industries and are expected to grow exponentially in the next decade, reaching a market of $ 20 billion … Based on the success of the first pilot program, we can expand this line of business. It is prudent for the CCMA to have many sources of income.”

Meanwhile, the two billionaires face lawsuits from the U.S Department of Justice (DoJ) for misappropriating funds belonging to PrivatBank. The bank, which belonged to both Kolomoisky and Bogolyubov, was nationalized in 2016 by Ukraine’s National Bank.

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