GMO Internet To Suspend Its Mining Activities
GMO Internet, one of the largest Japanese Internet companies, has published a press release in which it announced the termination of its activities related to crypto mining.
GMO Internet went into the bitcoin mining business in 2017. The main reason for abandoning this direction was the company's significant losses in Q4 2018. Moreover, the firm will not engage in the development, production, and sale of mining equipment.
Back in November, GMO Internet reported on the achievement of “historical” rates of return from crypto projects, including the sale of mining equipment, in Q3. At that moment, the company's revenue amounted to 2.6 billion yen (about $22.8 million).
Given the changes in the crypto market, it will be difficult to restore the financial resources associated with mining, according to the press release. However, in the future, the company may consider the possibility of crypto mining in the region, where it will be possible to use low-cost electricity.
Thus, GMO Internet joined the list of enterprises that suffered losses or shut down their operations in the field of crypto mining. Earlier it was reported about the alleged losses of the Chinese mining giant Bitmain, which could amount to more than $740 million in Q3. Besides, the company confirmed the information about a large-scale staff reduction.
In total, the GMO Internet losses amounted to 35.5 billion yen (about $320 million) in Q4. At the same time, these, allegedly, did not affect the current state of affairs and the financial solvency of the company.