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Burfa Tech Seals $26 Million Crypto Mining Equipment Deal With Bitmain

ByLouis Adams

Jun 16, 2021
Reading time: 3 minutes

Estonia, June 16, 2021: Burfa, a tech-focused Estonian conglomerate specializing in IT, fintech and data processing, concluded a 26-million-dollar deal with crypto mining hardware and solutions firm Bitmain, to purchase new crypto mining equipment. As a result, the company will be able to more than double the capacity of its high-performance data processing centers in the coming years. 

Given the global deficit of microchips that is going to affect the whole sector and the availability of various IT solutions in the near term, Burfa gains an important competitive edge across the world with the transaction of such scale. “There are clear limits to hardware production and this contract places us among a dozen or so major clients in the world who could secure such a large volume of additional resources. All others will have to wait until the supply chains are restored back to normal or pay a lot more for the equipment on the secondary market,” Chairman of the Board of Burfa Ivan Turygin explained. 

According to Turygin, Burfa is competing on the world market with its high-performance data processing centers, and the contract based on the company’s long-term relations with Bitmain secures its place among the international elite of the sector.

“The success of the blockchain technologies and the global crypto boom serve as a very favourable background for expanding our activities and increasing volumes and Burfa is one of the few companies in the world who can actually achieve this and even more already this year,” he added.

The delivery of the equipment is scheduled to start as early as this summer.  

The Bitmain Mining Division Vice President Du Shisheng said, commenting on the transaction:

“The Burfa Group companies have been our long-term and trusted customers. This is also the basis for the current contract, ensuring that Burfa gets state-of-the-art and most efficient technology for developing their high-performance data centers.” 

Burfa Tech has built a 7 MW high-performance data processing center in the Enefit Technology Park in Narva, which is currently the largest in Northern Europe. The center was completed in the summer of 2019 and phase II was added in 2020. At present the company is considering the Narva site as one of the options where to further extend its activities.

“We are thinking of adding another data processing center to the existing one in Narva, but we are also looking at alternative locations both in Estonia and elsewhere,” said Turygin. 

Burfa came up with the idea of developing the high-performance computing center already back in 2017. In parallel, development opportunities in Iceland, USA, and Russia, as well as in Estonia were studied. During the process, the company started to communicate with Enefit Technology Park, the location finally chosen. The site of the data processing center offers several competitive advantages – first, location in the guarded territory of the Balti Power Plant guarantees high security which is one of the basic requirements of the customers, and, secondly, significant cost savings are obtained on account of the network charges. Companies of the Burfa Group have previously managed similar data processing centers in China and Iceland as test projects. 

The Burfa Tech data processing center in Narva deploys AI monitoring and remote-control systems that, among others, monitor building temperature, humidity and fire safety. In addition, AI also monitors and controls electrical safety (electrical indicators, consumption, short circuits, etc.). To ensure the safety of the equipment, modern gas extinguishing and smoke extraction systems have been installed in the key premises of the computing center. Burfa Tech OÜ provides cloud and IT development services by deploying blockchain technologies. In addition, the company is building data processing and storage centers, involving leading scientists of Estonian research institutions in the process.

Purchase was financed using a mix of the company’s own funds and a debt facility extended by a US-based specialty lender.   

The parent company of Burfa Tech is Burfa Capital OÜ owned by Ivan Turygin and Sergei Potapenko. www.burfa.com e-mail: press@burfa.com