GMO INTERNET STOPS MINING EQUIPMENT PRODUCTION

The Japanese Internet Corporation “GMO Internet Group” refuses to produce equipment for bitcoin mining, citing documents in which the company reported “huge losses” for the fourth quarter of this year.

GMO, which joined the bitcoin mining industry in 2017,” will no longer develop, produce or sell” mining equipment.

“Taking into account the current changes in the business space, the company predicted an unfavorable scenario for its own assets in the field of mining, and therefore decided to fix a huge loss,” the document says.

GMO’s own bitcoin mining business will move “to a region where there is access to cleaner and less expensive electricity.”

Earlier it became known that the decline in the profitability of bitcoin mining along with its price forces many miners to abandon this occupation and eliminate their equipment at bargain prices. The Chinese mining giant Bitmain has recently closed its research division in Israel and may be able to get rid of a significant portion of the remaining staff.

GMO’s total losses for the fourth quarter amounted to 35.5 billion yen ($320 million). The company stated that recent failures do not threaten its “financial integrity”.

In November, GMO reported that in the third quarter of this year, its crypto-business has reached “historical indicators”.