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The Japanese e-commerce conglomerate DMM.com Ltd. will close its mining encryption business, citing the deterioration of profitability as the main cause. The local economic magazine Toyo Keizai reported the closure on December 30th.
Reportedly, the decision was taken in September 2018 and initial measures to dismantle mining activities – including the sale of the company's mining hardware – will extend through the first half of 2019.
DMM.com, which has over 27 million customers for its e-commerce business, announced its entry into the mining crypto business in September 2017, with particular attention to the major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). Starting in February of this year, the company managed a large mining company in the city of Kanazawa.
In April, DMM had even planned to open a showroom for its mining operations, with the intention of opening public access to see 1,000 mining machines on a 500-square-meter site, reports Toyo Keizai. Yet, apparently, the decision was canceled at the beginning of June due to security concerns, especially on the potential threat of hardware theft after failed attempts on the Kanazawa farm.
According to Toyo Keizai, DMM is also reconsidering the launch of a "Cointap" cryptography application, which was scheduled for December 25, 2018. The company believes that both the bearish cryptographic market and the high hack profile of Coincheck's Japanese cryptographic exchange in January 2018 made it more difficult to attract new players in the sector.
There has been no indication that DMM will cease to operate its regulated cryptocurrant stock exchange, which has been live since January 2018.
As reported, the Japanese Internet giant GMO Internet Group recently announced that it will not develop, manufacture and sell Bitcoin miners, after reporting high losses in the fourth quarter of 2018.
Meanwhile, mass sales reports of mining hardware in China have emerged in November, and mining industry stalwarts like Bitmain are supposed to fire personnel due to the price course of encrypted markets last year.
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