Electricity and gas prices, which have risen strongly and continue to rise in Germany and Europe in general, are the No. 1 topic of conversation. The effects are fatal. Many traditional companies have had to close. For example, the announcement of the insolvency of the traditional company Hakle was shocking. During Corona, toilet paper was still considered a luxury item, and only two years later, insolvency followed due to increased energy costs. And like Hakle, many other companies - and even more so Crypto-mining companies in Europe - have been hit hard by rising electricity prices. Many have already had to shut down their miners, close the companies or move to other locations outside Europe.
We too are asked almost daily how we deal with rising electricity prices and what impact it has on our crypto mining business. Crypto mining is indeed an energy intensive endeavor. Due to the skyrocketing electricity prices and the rather limited possibilities to get electricity from alternative energy sources, crypto mining in Germany and Europe has become unprofitable and uninteresting. You can also find an interesting article about this on Clever Cashflow.
Use of green hydropower to counter rising electricity price
After Georgia made fundamental investments in the construction of new power plants and the renovation of existing ones, Georgia is now able to export electricity. The reason for the encouraging development of power generation in Georgia was a focus on natural resources. Hydroelectric power plants have existed in Georgia since the 1930s. The power plant on the Enguri River, with one of the highest dams in the world and the electricity output of a nuclear power plant, was modernized over several years. Several new power plants have been built and another 40 projects are in the planning stage.
This development had led to the fact that Georgia today produces about 85% of its electricity from hydropower. The remaining 15% is generated by thermal power plants. The government in Georgia is pursuing a plan to generate 100% of its electricity from hydropower in the near future.
If in the 1990s and in the first years of the new century Georgia had to import electricity from abroad, today the country acts as an exporter of energy. There are high-voltage power lines to all neighboring countries, so that electricity can also be supplied to Russia and Turkey.
AVATRON Mining in Georgia
It is therefore little surprise that we have set up our crypto mining farm in Georgia. While electricity prices in Germany and the rest of Europe are skyrocketing, electricity prices in Georgia have not. The current electricity price is 0.30 GEL/kWh which is about 0.11 USD/kWh. Through good negotiations with electricity providers, we were able to negotiate an electricity price of 0.07 USD/kWh for our crypto-mining farm. This makes us, compared to other miner hosting providers, one of the cheapest service providers. What more could you ask for?
Crypto mining an unbeatable and attractive business
Crypto mining is an unbeatable business. Our employees are the crypto miners. No employees need to be laid off. When electricity prices rise, the employees - the ASIC Miners - are packed up, transported to a new location, plugged in and they are back to work.
The energy crisis and rising electricity prices in Europe is a positive development for AVATRON Mining. By setting up our mining farm outside of Europe early on, in a location with almost 100% green energy, we were able to benefit from the negative development in Europe. While other crypto mining farms had to close due to the high electricity prices, we had to expand our location.