Meet LAZM Project, a New Mining Star in the Making

by Ekaterina
Meet LAZM Project, a New Mining Star in the Making

LAZM is a data processing center located in an exclusive economic zone “Lipetsk,” which allows residents to use electricity on favorable terms and efficiently develop due to the low tax burden. The main activities of the project include the production of container data centers with Bitfury, Bitmain, and GPU miners, followed by deployment in the LAZM data center colocation. The key idea is to enter new emerging markets or those that are just to appear, with no established business models and rapid growth potential.

Newconomy contacted CEO of LAZM Filipp Modnov to clarify how exactly the project is solving the existing problems and how it’s business model is unique.

Filipp, when was the project started?

The project appeared in Apri,l 2018. At that period, the founders of LAZM decided to launch the first company, which is focused on the emerging market of distributed computing power.

So the company “Digital Technologies” has appeared, and on May 23, 2018, it received the residency status at the Lipetsk SEZ. We started building energy infrastructure and conduct R & D aimed at creating a unique business model for exporting IaaS services from Russia.

How does it work?

The residency of Digital Technologies at the Lipetsk SEZ, fine-tuning business processes thanks to Federal Law 116 “On Special Economic Zones” and access to the Russian wholesale electricity market allows us to meet all the requirements of laws and regulators in any jurisdiction with all applicable taxes. So, bitcoins obtained as a result of exporting computing power from Russia will undergo any KYC / AML procedures, which in 2020 will become a prerequisite for doing this business. It is important to note that the costs are comparable to the conditions in China, which has occupied the leading position for a long time, and sometimes they will be even lower, which will allow remaining profitable even in a falling, depressed market.

Although, the primary resource of the project and long-term strategy is a team of like-minded people who are continually transforming. Russia is a unique place with a vast number of talented people, though not all of them have the opportunity to realize their potential. We see our mission in creating conditions and an ecosystem for their self-realization.

What audience is the project focused on?

Institutional and venture capital investors. The nature of our product allows you to simultaneously have continuous contact with the technical support of block containers, keep a finger on the pulse, and manage the asset remotely, without spending a lot of resources and attention on controlling it. For investors with broad investment interests, this is extremely important.

What public are you seeking to get involved in your project / what users?

We are interested in partners and customers looking for new business models. Though, in conversation with potential investors, we always emphasize that the necessary condition for cooperation with us is compliance with all laws, without exception, regardless of the jurisdiction of the investor’s registration.

Why is your project in demand?

The recipe is simple – we solve the AML problem for crypto assets with the ability to show their origin from the moment of issue. We enter the market at the right moment and potentially have the opportunity to set a market standard. At least for the Russian market for sure.

What are your main achievements at the moment?

We have something to brag about. We have successfully completed R & D and are ready to enter the world market as an exporter of high-tech services. This is not our personal opinion: this is confirmed by expertise obtained from the “Russian Export Center.” We built partnerships with several SEZ sites of Russia and took part in a pilot project as a technology partner and consultant on “digitization of the resident status procedure,” creating a digital twin. According to the results, a working group was created from the leaders of the Russian special economic zones with our participation, and the concept of creating “Digital SEZ” in Russia was formulated, which was then approved by the Ministry of Economic Development of the Russian Federation. R & D has been launched, the task of which is to design a platform for a new formation.     

What are your long term plans and goals?

According to our calculations, we will reach the operating profit in the shortest possible time. The project of the “Engineering Center” in the Lipetsk SEZ with our participation and Honeywell Russia will start soon. We also plan to complete the first round of venture financing for Digital Technologies.

In 2020 we will begin to scale our business model actively. We plan to launch another two or three data centers that would work on the business model of Digital Technologies. We will open offices outside Russia in one or two regions of the world – depending on our business interests.

Our goal is to work steadily in the unified global digital services market with a set of web.3 products by 2025 and actively export high-tech services from Russia. The maximum plan is to become a “unicorn” in this sphere.

Thanks a lot! See you soon)

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