The Japanese IT giant GMO is in today’s Bitcoin news, this time for a breaking announcement in which it stated that it will quit making and selling Bitcoin and crypto miners following a year of bear market losses.
As the firm announced on Tuesday, due to the “increasingly competitive” environment and weak crypto market, it will ““no longer develop, manufacture, and sell mining machines.”
GMO is to record an “extraordinary loss” of 35.5 billion yen (which is approximately $321.6 million) consisting of impairment loss and losses from transfers of receivables which are right now approximately $104.2 million and $217.4 million respectively, mostly due to the sales of relevant assets.
As the announcement read:
“After taking into consideration changes in the current business environment, the company expects that it is difficult to recover the carrying amounts of the in-house-mining-related business assets, and therefore, it has been decided to record an extraordinary loss.”
The mining company first launched its miner making business in September 2017 and set up the operations in northern Europe at the end of last year. The decision to quit the business comes months after its new miner named “B3” packed with a 7nm mining chip.
“We are currently operating mining machines, and the depreciation cost will be almost zero after recognizing the impairment loss. Therefore, we will continue running mining operations if we can ensure that the revenue exceeds the electricity cost,” the firm summed up in a conference call for institutional investors on Tuesday.
The overall loss right now is more than 640 million yen ($5.6 million) in Q3 of 2018 alone, after a drop of $3.2 million in the previous quarter (Q2).
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