The Japanese internet giant GMO has announced that it will no longer develop, manufacture and sell cryptomed mining machines. The company, however, will continue to mine internally, but will move its mining center to a region with cleaner, less expensive energy.
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Exit the mining equipment business
<img class = "size-half wp-image-265811 alignright” title=”GMO of Japan to manufacture and sell mining machinery” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet-300×40.jpg” alt=”The GMO of Japan to manufacture and sell mining machinery "width =" 300 "height =" 40 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet- 300×300.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. with / wp- content / uploads / 2018/12 / gmo-internet-1068×142.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-internet.jpg 1145w "sizes = "(maximum width width: 300px) 100vw, 300px”/>GMO Internet Inc. announced on Tuesday after a board meeting that "will no longer develop, manufacture and sell mining machinery." The company is reporting an extraordinary loss of 24 billion yen (~ $ 218 million) related to these activities. the fourth quarter of the fiscal year ending December 2018.
<img class = "size-half wp-image-265817 alignright” title=”GMO of Japan to manufacture and sell mining machinery” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/btc-decline-300×181.jpg” alt=”GMO of Japan to manufacture and sell 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 / uploads / 2018/12 / btc-decline-695×420.jpg 695w "sizes =" (width max: 300px) 100vw, 300px”/>"With respect to the current mining machinery markets, the environment is increasingly competitive due to declining demand mainly due to the decline in the price of cryptomidea, declining sales prices, etc.," the announcement said. After considering the changes in the current encryption environment, the GMO wrote:
The company expects it to be difficult to recover assets related to encrypted mining business through the sale of mining machinery, so the company decided to stop the development, manufacturing and sales of mining machinery, thereby recording an extraordinary loss.
In addition, GMO noted that it acquired mining machinery and paid the costs necessary to manufacture its 7nm machines. With the decision to exit the manufacturing business, GMO has revealed that it will transfer the assets related to MP18 Llc, a specific purpose company of Tani Electronics Corporation.
<img class = "size-large wp-image-265814 aligncenter” title=”GMO of Japan to manufacture and sell mining machinery” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/gmo-miners-1024×446.jpg” alt=”GMO of Japan to manufacture and sell 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 / uploads / 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”/>
GMO announced the development of its 7nm bitcoin mining equipment in September last year. Miner B2, the first line of its mining equipment, began selling in June for $ 1,999. Another line, the Miner B3, began to be sold in July for the same price. The first batch of B2s was due in late October and the B3s in November. However, to date, no mining machinery of any kind has been shipped.
<img class = "average size wp-image-265821 alignright” title=”GMO of Japan to manufacture and sell mining machinery” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/mining-300×214.jpg” alt=”GMO of Japan to manufacture and sell mining machinery "width =" 300 "height =" 214 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/mining-300×214.jpg 300w, https: //news.bitcoin.com/wp-content/uploads/2018/12/mining-768×549.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/mining -100×70. 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 =" (width max: 300px) 100vw, 300px”/>For its domestic mining business, launched in December last year, GMO is recording an extraordinary loss of approximately 14 billion yen on an unconsolidated basis (11.5 billion yen on a consolidated basis) for the fourth quarter of the year fiscal year ended December 2018.
The company explained that the profitability of its domestic mining business "decreased with the decline in the price of cryptomidea and our share in mining did not increase as expected due to the increase in the global hash rate, which exceeded our initial premise," noting,
After taking into account the changes in the current business environment, the Company expects that it will be difficult to recover the carrying amounts of the internal business assets related to mining, and therefore it was decided to file an extraordinary loss.
GMO mined 696 BTC and 400 BCH in November. Its hashrate has steadily grown as planned, shows its latest mining report. "We will introduce the mining machine from other manufacturers to the internal mining. Our plan is to see
our hash rate exceeds 800 PH / s by the end of December, "the company said earlier this month.
In its announcement on Tuesday, GMO noted that "the cost of depreciation of mining machines and the cost of electricity make up the majority of operating expenses," elaborating:
In terms of cost of electricity, we will transfer the mining center to a region that will allow us to guarantee a cleaner and cheaper energy supply.
What do you think of the GMO going out of the business of manufacturing and selling mining machinery? Let us know in the comments section below.
Images courtesy of Shutterstock and GMO Internet.
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