Challenges Surround GMO Internet’s Cryptocurrency Mining Business
The cryptocurrency mining business report from GMO Internet released on January 8, 2019, indicates a slight surge in the number of bitcoins mined, but a decrease in profits because of the plummeting price of bitcoin. GMO revealed it didn’t mine Bitcoin Cash in December and will discontinue publishing mining business report from January 2019.
GMO Internet: Waking the Japanese IT Giant
Tokyo-based GMO internet Inc. was established in 1995. The company develops Internet Infrastructure, Online Advertising & Media, Internet Finance, and Cryptocurrency businesses.
The firm began its in-house mining division in December 2017, in the midst of the bitcoin frenzy and meteoric rally. This division focused on developing, manufacturing, and selling mining hardware, especially mining chips. GMO Internet reported massive profitability from this branch in the initial few quarters.
However, the subsequent fall in the crypto prices not only offset these profits but also resulted in enormous losses.
A Mixed Monthly Report for December 2018
GMO Cryptocurrency Mining Business Income Report.
( Source: GMO)
GMO Internet has confirmed a massive decline in its overall mining revenue.
The Bitcoin (BTC) rewards surged from 696 bitcoins in November 2018 to 960 bitcoins in December 2018.
The Bitcoin Cash (BCH), on the other hand, does not appear to be mined by the company in December 2018. The report shows the mining reward from Bitcoin Cash as zero for December 2018 against the 400 in November 2018. It is possible the company has stopped mining BCH entirely due to recent conflicts and fork in the BCH community.
The company is expected to continue its in-house mining operations. The report has pointed out the significance of relatively inexpensive electricity for increasing profit margins. Consequently, decisions are now being taken to relocate the mining centers to achieve this feat.
This monthly report would also be the last one from the company, in accordance with the decision to stop publishing monthly reports from 2019. Overall, the effects of the 2018 crypto bear seem to be still lingering for GMO Internet.
On December 25, 2018, GMO announced its decision to shut down the cryptocurrency mining machines manufacturing business.
The cryptosphere continues to be in the bear market, and the strategies continue to change for big and small companies.