Cryptocurrency market update: Bitcoin miners’ in jitters as Japan’s GMO closes mining software unit

The Japan-based internet technology company, GMO has recently announced that it is closing down its mining development and manufacturing unit. The company has been designing and manufacturing the mining chips. However, it cites continued losses due to the cryptocurrency prices crash in recent months.

The news was released in a statement on December 25. The firm told its investors that the “increasingly competitive” mining venture has warranted the firm to cut its losses. Records show that GMO reported “extraordinary” losses amounting to $321 million. Crypto Slate, a news outlet says that the losses come from the “transfers of receivables and impairment losses at $217 million and $104 million respectively.”

The manufacturing unit at GMO was incepted in 2017 at the time the marked was experienced the historic parabolic surge. At the time many players, experienced and mature alike who seek to develop products as well as services in regards to the blockchain technology. GMO moved fast with the launch of mining centers in Northern Europe. Not long ago the firm had launched the B3 Miner; a complex mining rig tool that boasts of a 7-nanometer chip that is specially designed to solve the mining equations in BTC algorithm.

GMO is not exiting the mining business entirely. It will keep the in-house mining activities as well as look into the relocation of its mining centers to regions which cheaper and cleaner energy. The firm is, however, yet to disclose its strategy of the turnaround and how it plans to start recording profits.

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