Another Crypto Meltdown disaster, Japan GMO Group Exits Bitcoin Miner Production Business

Although there are several revivals for crypto traders, things that are far from improving for miners and mining equipment manufacturers. According to a recent news stream that came from Japan, the Japanese internet giant GMO Internet Group closed its crypto mining hardware business.

Why do GMOs have to close the production business of bitcoin miners?

According to a press release issued on Christmas Day, the Japanese GMO Group announced that the company's Board of Directors had decided to book extraordinary losses in the cryptocurrency mining business for the fourth quarter (October 1, 2018, until December 31, 2018) of the fiscal year ending December 2018.

On a consolidated basis, the total mining business reported losses of JPY 35.5 billion. The farewell is as follows

• Internal mining – Impairment losses of JPY 11.5 billion
• Mining machinery development, manufacture and sales – Loss of JPY 24 billion

On a non-consolidated basis, losses have just reached JP 38 billion. The same split is as follows

• In-house mining – loss of sale of shares of a subsidiary of JPY 14 billion
• Mining machinery development, production and sales – Loss of JPY 24 billion

Further press releases state that,

"Regarding the current mining machinery market, the environment is increasingly competitive because the decline in demand is mainly due to the decline in cryptocurrency prices, lower selling prices, etc. After considering changes in the current business environment, the Company expects that it is difficult to recover assets related to cryptocurrency-mining-business through the sale of mining machinery, so that the Company has decided to stop the development, manufacture and sale of mining machinery, thereby recording extraordinary losses. . "

Everything was completely opposite to the previous quarter for GMOs because the company had reported a strong performance from the cryptocurrency project in Q3, which included mining hardware sales. Profits reached JPY 2.6 billion.

That does not only happen to GMOs. Recently Bitmain also shut down its Israeli operations because of mining operations that could not be carried out. It also stopped its full staff from West Asian countries.

In the Western Hemisphere, a similar effect was felt when investors mercilessly dumped Nvidia shares in the last quarter of 2018, tapping share prices by 54 percent, making it the worst player in the S & P 500 during the same period.

The market has begun a journey to the top and everyone can only expect things to improve for the mining industry and mining hardware manufacturers. How fast it will happen is something that has to wait and watch.

Will the GMO consider re-entering the crypto mining business whose markets are improving? Tell us your views about the same thing.