How Armenia is Becoming a Blockchain Haven Through Free Economic Zones

A Thriving Mining Landscape

Armenia is emerging as a hotspot for cryptocurrency mining, proving that sometimes all you need is a little power. Recently, a local mining operator cranked up the juice, adding 60 megawatts of capacity to its power plant-based facility. It’s like upgrading to a Tesla from a tricycle.

The Role of ECOS and the Hrazdan Power Plant

Since 2018, the Hrazdan Power Plant has been home to the cryptocurrency investment platform, ECOS. This mining center is not just crunching numbers; it’s also powering up the local economy by utilizing its direct access to electricity and a host of attractive financial benefits. Talk about a deal that really electrifies the situation!

A Partnership That’s Paying Off

The collaboration between ECOS and the Armenian government laid the groundwork for creating a free economic zone (FEZ) aimed at turning the old power facility into a modern hub for data centers and mining operations. You could say it’s like taking an old car and giving it a new engine, but in this case, it’s more like transforming it into a high-tech spaceship.

Tax Benefits: A Sweet Deal for Miners

Thanks to the FEZ, businesses operating at the Hrazdan site are enjoying a tax holiday of sorts. There are no taxes on property, VAT, or customs duties for those brave enough to mine in these zones. Anna Komashko, ECOS’s marketing manager, sums it up perfectly: “The main aim of FEZ was to help attract and develop high technologies in the country.” Sounds like a dream come true for blockchain enthusiasts!

The Setup: Infrastructure That Rocks

The infrastructure at this promising site includes a state-of-the-art data center and a service center, with seven shipping containers housing around 250 mining units. It’s a veritable playground for those who want to get in on the crypto craze. ECOS sources its miners directly from Bitmain, ensuring they have the best kit to strike it rich. With about 258,000 users relying on their cloud mining service, there’s plenty of action on the rainbow road to crypto riches—just watch out for the potholes!

Future Prospects: Power to Expand

ECOS is not stopping at 60 megawatts; they’re eyeing an additional 200MW of clean and affordable electricity for future endeavors. With an average temperature of merely 4.8 degrees Celsius, this mountainous region is just begging to be mined. It’s like the universe is practically sending Bitcoin straight to them!