GMO Internet, a giant Internet group of Japan has decided to quit the Bitcoin mining part due to a big loss in the fourth quarter. The company will stop developing, manufacturing, and selling Bitcoin in the coming years; as it is difficult for the GMO Internet to recover the amount spent in the mining businesses.
GMO Internet Stops Mining Operations
According to the news reports, December 25, a public document was released from GMO Internet which stated that the company is quitting the mining of the cryptocurrency, Bitcoin because the loss in Q4 led the company to a great loss. GMO Internet, which started the journey of Bitcoin mining in the year 2017, has decided to step back from bitcoin mining.
The official document says:
“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 company also concluded that, in order to perform the mining operation, it will shift to a region that will aid in securing cleaner and cheap power supply. This news from GMO Internet can be the latest casualty that happened in the bear market of Bitcoin in the year 2018.
The reports also show a scenario of mass dumping of bitcoin hardware that took place in China, as well as many redundancies news from well-known names like Bitmain. The news further highlighted that Bitmain, after shutting down its operations in Israel, was planning to fire off its 2500 workforce.
The loss that happened to GMO Internet in Q4 is estimated to be around $320 million, whereas, an unconsolidated loss will be close to $334.5 million. However, as per GMO Internet, this loss has not affected its financial integrity.
In November, GMO Internet showed a brilliant performance in its third quarter’s cryptocurrency projects. The total profit of the company was around $22.8 million.