According to a record filed by GMO Internet Team, through the document, the company verified that it would no more “develop, produce and sell” mining equipment, citing extraordinary losses because of this decision. The document, that was titled ‘Recording Extraordinary Reduction Linked to The Cryptocurrency Mining Company Restructuring,
Document Information
“After considering changes in today’s business environment, and for that reason, it has been made a decision to record a fantastic loss.”
GMO released its in-home mining division in December 2017 at the elevation of bitcoin’s bull operate. The company chose to function through subsidiaries, two Switzerland-based companies, and a mining middle.
Analysis of the record showed that electricity costs have been a significant factor affecting its efficiency. While these electricity expenses have been sustainably higher, the dip in the worthiness of the coins getting mined has managed to get increasingly difficult for the business to offset the imbalance. Based on the document, GMO can look into relocating the Bitcoin mining company to a spot where they would have the ability to mitigate the effects of the electricity costs.
As a way of alleviating this, the business said it could “relocate the mining middle to a region which will allow us to protected cleaner and less costly power supply.”
Altogether, 5 billion Yen (the same as $320 million),
Positive Q3
The news headlines of the shutdown is specially shocking, as the business documented favorable performances from its cryptocurrency mining division in Q3 2018. These performances included equipment sales, and general, the cryptocurrency division of the business reported a total revenue of 2.6 billion Yen ($22.8 million) through the third quarter.
GMO reported that regardless of the losses recorded, ” With GMO’s latest announcement, the company is currently the latest casualty the existing bear market.”