The wealthiest and most controversial Ukraine’s oligarch, Igor Kolomoisky, is reported to be using a Kentucky-based CC Metals & Alloys (CCMA) factory for mining Bitcoin using cheap electricity, while the plant is going to shut down everything but the mining gear.
Mining gear works, while the plant froze production
CC Metals & Alloys has a 70-year-old history of operations since the day it was launched. In July this year, the factory was closed and the works sent home (and some were fired) due to the redundancies caused by the pandemic crisis.
However, while people planned to return to work, they were suddenly told that by December the rest of the staff would be fired. The only thing that keeps running in its buildings is Bitcoin mining equipment.
The factory is owned by Ukrainian oligarch Igor Kolomoisky and his business partner Gennadiy Bogolyubov, a billionaire and businessman.
Recently, the plant ventured into blockchain and artificial intelligence in order to diversify its profits. A third party was chosen to place the necessary computer gear on the factory.
Right now, a worker whose name is undisclosed said, that the mining gear is the only equipment working in the plant, while the facilities for its main production are closed down.
Low-cost electricity for mining
The crypto mining operators are using the low-cost electricity available in the state of Kentucky near the Tennessee river and that is not the only mining factory in the region.
The reason why the factory is likely not to be launched again to produce metal is the legislative pressure from the US authorities onto Kolomoisky and Bogolyubov.
The who oligarchs are accused of taking billions of USD from the largest Ukraine’s bank, Privat, that they own and investing these funds in the US iron and steel plants and other assets, including real estate.
Former business partner of the current Ukraine’s president
The current president of Ukraine, Volodymir Zelenskiy, used to work with Kolomoisky on the popular Kyiv-based 1+1 TV channel, where Zelenskiy was a producer of comic movies, comedian shows.