On December 25, Cointelegraph Japan reported that GMO Internet Group is going to quit the Bitcoin Mining hardware sector. The company witnessed considerable losses in the fourth quarter this year. The company which began mining in 2017, says that it will no longer develop, manufacture or sell miners.
According to the documents, with changes in the current crypto business and industry, the company feels it will be difficult to recover for the losses of in-house-mining-related assets forcing the company to record an extraordinary loss. According to GMO, they want to set up their mining operations ‘to a region that will allow us to secure cleaner and less expensive power supply.’ With the news hitting the crypto industry, GMO has become the latest casualty of 2018 BTC (Bitcoin) bear market, with a drastic fall in prices directly affecting mining profitability.
According to reports, China went all out implementing mass dumping of hardware. This bit was followed by the news of redundancies by Bitmain, one of the major players in the crypto industry.
This week, after shutting down its Israeli operations, Bitmain was all set to fire 2500 people, constituting almost half of the Bitmains workforce. Consolidated losses that GMO faced in its fourth quarter totalled up to 35.5billion yen, which is approximately $320 million. Unconsolidated losses suffered by the company totals up to 38 billion yen ($334.5 million)
However, GMO came out to announce that these losses do not impact on its financial integrity. For the third quarter of this year, GMO reported historical performance of its cryptocurrency projects including mining hardware sales. The third quarter recorded profits of up to 2.6 billion yen ($22.8 million).