Bitfury Group

Bitfury Group is a blockchain company of a wide profile and one of private suppliers of infrastructure in a blockchain ecosystem. Bitfury develops and delivers both the software, and the hardware solutions necessary for the companies, the governments, the organizations and private citizens for safe transfer of assets through a blockchain. Bitfury is founded in 2011 by Valery Vavilov from Latvia and Valery Nebesny from Ukraine.

2019

Creation of fund for investment into production of cryptocurrencies

On April 24, 2019 Bitfury Group announced creation of a controlled fund of mining thanks to which investors will be able to make investments in objects for production of cryptocurrencies. A blockchain company started this project jointly with the Swiss investment firm Final Frontier.

The fund invests in the ready assets consisting of mining platforms with the lowest expenses on the electric power and operation in the world which are equipped with data centers from Bitfury.

Investors of Bitfury fund will be able to put in objects for production of cryptocurrencies

Bitfury will provide to fund the equipment and complex services in integration and service. Platforms where the computer equipment for production of cryptocurrencies will be placed, will appear in places which reconnoitered and serviced Bitfury.

Access  to  mining  of bitcoin  traditionally  represented  technological and financial hazards  for institutional investors. The new fund solves these problems, offering access  to  mining of bitcoin through completely controlled fund in the European jurisdiction with the leading service providers, said in the joint press release of Bitfury and Final Frontier.

The cofounder of Final Frontier Imraan Moola says that by April, 2019 in the market of cryptocurrencies there was a favorable situation for start of fund.

The price for bitcoin fell considerably from its record-breaking high level, but institutional interest grows every day, now, perhaps, the most suitable time to think of investment into mining of bitcoin — considers the Mule.

According to the vice-chairman of Bitfury  George Kikvadze, the new project will be interesting  to investors who aim to strengthen the portfolios, and will be able to increase popularity of bitcoin.

By April 24, 2019 the cost of bitcoin was about $5500. For profitable production of this cryptocurrency its rate should make $3550-4350, the cryptanalyst Alex Kruger estimates.^[1]

Start of division and Bitfury Surround platform

On January 16, 2019 the Bitfury Group company announced Bitfury Surround start: the division in Bitfury Group will be engaged a solutions blockchain for the musical industry, helping to solve problems which contractors, producers, owners and stakeholders daily face. Read more here.

2018

Creation of an accelerator a blockchain projects together with PwC

On December 13, 2018 it became known that Bitfury Group in Russia and PwC signed the partnership agreement. Cooperation is directed to creation of an accelerator a blockchain projects which will save business from a number of finance costs.

In particular, the blockchain company of Bitfury Group and network of PwC auditor consulting firms in Russia will develop a row a blockchain products on the basis of the analysis of current demands of clients of PwC. Already there are cases based on Exonum — a framework open source for creating applications on the basis of a blockchain which the PwC Academy already provided within the training courses and seminars.

According to results of a research of PwC, implementation of blockchain technology will cardinally change modern economy and approaches to implementation of financial transactions. So, for example, among types of system costs which can be reduced or excluded PwC notes cost reduction on personnel and infrastructure, due to business process automation using smart contracts for a blockchain.

Our mission — to make blockchain technology of as much as possible mass. Partnership with PwC proves that the technology will develop and in the next several years large-scale a solution blockchain will be implemented in different segments of economy and business. Dmitry Ufayev, the head of Bitfury in Russia

In August, 2018 PwC published the report of 2018 Global Blockchain Survey according to which 84% of the polled IT companies apply blockchain technology in the work, 64% are used by a blockchain network of own development, and 35% of market participants stated that they work on a theoretical research and testing of blockchain technology. According to forecasts of PwC, by 2030 the blockchain projects will be annually generated for business by about $3 trillion. 600 heads of the IT companies from 15 countries participated in poll.

Opening of the Center a blockchain competences for the corporate sector together with Croc

On November 30, 2018 the Croc company and a blockchain company of Bitfury Group announced creation of one of the first centers a blockchain competences for the corporate sector in Russia. The joint project is aimed at increase in level of literacy of business in the field of a blockchain and expansion of a range of use of technology. Read more here.

Expansion of structure of Board of Directors and expert advice

On November 21, 2018 Bitfury Group announced that the banker and the investor, the co-founder of Korelya Capital Antawn Dresh joined Board of Directors of the company; and to expert advice — the former member of the commission on securities and the exchanges of the USA (SEC) Annette Nazaret.

We with pleasure welcome new board members and expert advice. Long-term experience of Antawn Dresh in banking and investment business, in merges and company takeovers will be a reliable support in the course of the further growth of Bitfury company. Annette Nazaret as the entrusted adviser will support us by consultations on financial markets and state regulation. Valery Vavilov, CEO Bitfury

Acquisition of a minority share of Final Frontier

On November 13, 2018 the Bitfury Group company announced acquisition of a minority share of Final Frontier company which specializes in providing financial services in a blockchain industry. Read more here.

Attraction of $80 million investments and preparation for the IPO

In November, 2018 Bitfury Group announced attraction of $80 million investment according to the results of a financing round which headed the European venture fund Korelya Capital.  Also it became known of plans of equipment manufacturer and the software for production of cryptocurrencies to go public.

In addition to Korelya Capital, the South Korean Internet giant Naver Group, Asian funds Macquarie Capital and Dentsu, the European investment company Armat Group, heads of Jabre and Lian Group funds, MACSF insurance group, cryptocurrency commercial bank Galaxy Digital of Mike Novograts and a private equity fund of iTech Capital invested in Bitfury.

The equipment manufacturer for Bitfury mining created by the Latvian and the Ukrainian attracted $80 million investments and prepares for the IPO

Borrowed funds of Bitfury are intended to be allocated for gain of top management of the company, financing of strategic projects and strengthening of positions in the market. It is going to continue work on products for large corporate clients and the government organizations.

2018 became year of active growth of Bitfury. Successful closing of a round of investments — the best recognition of efficiency of our work in the different markets, – in the field of artificial intelligence, a blockchain and high-performance computing — the cofounder and the head of the company Valery Vavilov said.

At the end of October, 2018 the Bloomberg news agency with reference to the people familiar with a situation, reported that Bitfury considers the possibility of primary public placement of the actions. If the company makes the IPO within two years, it can be estimated at $3-5 billion, however final cost can depend on a situation in the market, interlocutors of the edition noted.

According to them, Bitfury agreed with the international investment banks concerning studying of a possibility of listing in Amsterdam, London or Hong Kong at the beginning of 2019.^[2]

Representation in Russia

The mining company Bitfury Group founded by the participant of the first rating of cryptomillionaires of Forbes Valery Vavilov opened at the beginning of 2018 the first office in Russia. It is said in the statement of Bitfury, the Russian office will promote the platform for creation private a solutions blockchain of Exonum and software for the analysis and implementation Crystal bitcoin transactions. It will be headed by the former head of hosting and domain business of RBC and the co-founder of Biglion Dmitry Ufayev.

The company will work both with private business, and with state structures. Bitfury works on the pilot project intended for Rosreestr. At this Forbes notes that Bitfury in Russia has no official partners yet.

2017

In July, 2017 the company announced start of the specialized Exonum development environment helping citizens, it is safe and easy for companies and governments to realize the ideas and solutions.

The method is found to destroy anonymity of bitcoin

Staff of Bitfury Group company developed new approach to the analysis bitcoin transactions, having suggested to integrate the addresses of the cryptocurrency wallets related to one user, in clusters. As it is specified in the publication of the company, the new solution "will help to reveal relationship between the addresses of bitcoin wallets that will allow to minimize errors in data and to provide enhanced accuracy in determination of accessory of such addresses at criminal investigations". "Besides, this solution will prompt to end users methods to protect the privacy" — developers specify^[3].

SDVentures exit

One of the first investors in a blockchain in the CIS countries – SDVentures fund – announced in October, 2017 leaving the company of BitFury conducting a developer blockchain and integrator. Since 2013 SDVentures independently and as a part of partner fund iTech Capital invested in BitFury in the form of a convertible loan about $20 million, having received more than 40% of profitability for invested funds by the time of an exit. An exit from the project was planned, are happy with profitability level in fund and note that such digits from the fast-growing direction and were expected.

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