The Japanese internet giant GMO has announced that it will not develop, manufacture and sell more cryptocurrency machines. The company, however, will continue to work on its own, but will move its mining center to a region with cleaner, cheaper energy.
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Exit from the mining equipment business
<img class = "size-medium wp-image-265811 alignright” title=”The Japanese GMO stops manufacturing and selling mining machines” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet-300×40.jpg” alt=”Japanese GMO stops manufacturing and selling mining machinery "width =" 300 "height =" 40 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/gmo- internet-300×40.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet-768×102.jpg 768w, https://news.bitcoin.com/wp-content/ uploads / 2018/12 / gmo-internet-1024×136.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet-696×92.jpg 696w, https: // news. bitcoin.com/wp- content / upload / 2018/12 / gmo-internet-1068×142.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet.jpg 1145w " sizes = "(max width: 300px) 100vw, 300px”/>GMO Internet Inc. announced Tuesday after a board of directors stated that "it will no longer develop, manufacture and sell mining machinery". The company is recording an extraordinary loss of 24 billion yen (~ $ 218 million) related to these assets for the fourth quarter of the fiscal year ending in December 2018.
<img class = "size-medium wp-image-265817 alignright” title=”The Japanese GMO stops manufacturing and selling mining machines” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/btc-decline-300×181.jpg” alt=”Japanese GMO stops manufacturing and selling mining machinery "width =" 300 "height =" 181 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/btc- decline-300×181.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/btc-decline-768×464.jpg 768w, https://news.bitcoin.com/wp-content/ uploads / 2018/12 / btc-decline.jpg 869w, https://news.bitcoin.com/wp-content/uploads/2018/12/btc-decline-696×420.jpg 696w, https: //news.bitcoin. com / wp-content / upload / 2018/12 / btc-decline-695×420.jpg 695w "sizes =" (maximum width: 300px) 100vw, 300px”/>"With regard to the current mining machinery markets, the environment is increasingly competitive due to the decrease in demand mainly due to the decline in the price of cryptocurrency, the drop in the selling price, etc." It reads in the announcement. After examining the changes in the current cryptographic environment, the OGM wrote:
The company expects it to be difficult to recover assets related to mining cryptocurrency activities through the sale of mining machinery, so the company decided to discontinue the development, production and sale of mining machinery, thus recording an extraordinary loss.
In addition, GMO noted that it had purchased mining machinery and paid the costs necessary for the production of its 7 nm machines. With the decision to abandon the production activity, the OGM revealed that it will transfer the related assets held to MP18 Llc, a joint-stock company of Tani Electronics Corporation.
<img class = "size-large wp-image-265814 aligncenter” title=”The Japanese GMO stops manufacturing and selling mining machines” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-1024×446.jpg” alt=”Japanese GMO stops manufacturing and selling mining machinery "width =" 696 "height =" 303 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/gmo- miners-1024×446.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-300×131.jpg 300w, https://news.bitcoin.com/wp-content/ uploads / 2018/12 / gmo-miners-768×335.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-696×303.jpg 696w, https: // news. bitcoin.com/wp- content / upload / 2018/12 / gmo-miners-1392×606.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-1068×465.jpg 1068w, https: // news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-964×420.jpg 964w "sizes =" (maximum width: 696px) 100vw, 696px”/>
The OGM announced for the first time the development of its 7nm bitcoin mining equipment in September last year. The miner B2, the first line of its mining equipment, was put up for sale in June for $ 1,999. Another line, Miner B3, was put up for sale in July at the same price. The first batch of B2 was to be shipped at the end of October and B3 in November. However, to date, no mining machines of both types have been shipped.
<img class = "size-medium wp-image-265821 alignright” title=”The Japanese GMO stops manufacturing and selling mining machines” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/mining-300×214.jpg” alt=”Japanese OGM stops manufacturing and selling mining machinery "width =" 300 "height =" 214 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/mining- 300×214.jpg 300 watts, https: //news.bitcoin.com/wp-content/uploads/2018/12/mining-768×549.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018 / 12 / 100×70-mining. jpg 100w, https://news.bitcoin.com/wp-content/uploads/2018/12/mining-696×497.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/ mining-588×420.jpg 588w, https://news.bitcoin.com/wp-content/uploads/2018/12/mining.jpg 845w "sizes =" (maximum width: 300px) 100vw, 300px”/>For its domestic mining business, launched in December last year, the OGM records an extraordinary loss of around 14 billion yen on an unconsolidated basis (11.5 billion yen on a consolidated basis) for the fourth quarter of the year. 39, fiscal year ending in December 2018.
The company explained that the profitability of its domestic mining business "decreased when the price of cryptocurrency declined and our mining share did not increase as expected due to the rise in the global hash rate, which exceeded our hypothesis initial ", observing:
After taking into account the changes in the current business environment, the Company expects it to be difficult to recover the accounting values of the company activities related to internal mining activities and, therefore, it was decided to record an extraordinary loss.
GMO extracted 696 BTC and 400 BCH in November. The hashrate is constantly growing as planned, as its latest mining report shows. "We will introduce the mine from other producers to the inner mines, our plan is to see
our hash rate exceeds 800 PH / s by the end of December, "the company said at the start of this month.
In his announcement on Tuesday, the GMO noted that "The cost of depreciation of mining machines and the cost of electricity include the majority of operating expenses", elaborating:
In terms of electricity costs, we will move the mining center to a region that will allow us to guarantee a cleaner and cheaper energy supply.
What do you think of GMOs coming out of the production and sale of mining machines? Let us know in the comments section below.
Images courtesy of Shutterstock and GMO Internet.
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