Japan Ecom Giant DMM Follows GMO Internet in Shutting Down Crypto Mining Operations
Japanese E-commerce Giant DMM Follows GMO Internet To Shut Down Crypto Mining Operations
E-commerce platform DMM is closing down its flagship farm and showroom in Kanazawa, Ishikawa, less than a year since it unveiled the facility. The farm was reportedly mining Bitcoin, Litecoin and Ethereum, and was even opened to the public, with guided tours available.
They hoped to fund their other blockchain businesses through their mining operation, however, it had become unprofitable recently. The decision was taken after a bad year for mining companies in the cryptocurrency space. Indeed, several small mining firms had to shut down their operations after the price drop that affected Bitcoin (BTC) and other virtual currencies in the space.
DMM stated that “deteriorating profitability was the main reason” for the company’s decision to close down its mine, and that company executives had already resolved to turn their backs on mining as early as September last year. DMM will now reportedly look to sell off its equipment “in the first half of 2019.”
The company was not prepared for the security problems that they were facing. Toyo Keizai said:
“I would like users to experience the extraordinary mining site in their lives. From such thought, DMM opened a part of the [mining] farm to the public, but this was canceled in early June. It is because it is judged that ensuring security is difficult. Overseas, theft of virtual currency mining machines has been steady, and [there were attempts] even at the DMM’s Kanazawa farm.”
GMO Internet declared last Tuesday that it will not be developing cryptocurrency mining hardware. They had notably announced bumper crypto-revenues of USD 23 million in its Q3 report, has decided to cease developing and selling mining hardware. The company states that it will continue its own mining projects, but will conduct a “full review of its business structure.”
GMO has been one of Japan’s most notable mining players and is the operator of a mysterious cryptocurrency mining facility that it operates at a secret Northern European location.
Earlier this week BitcoinExhangeGuide had published the list of over 200 blockchain companies who had the intention of entering the Japanese crypto market. DMM was also in the list, but with this news, the company has been sending mixed signals.
DMM.com has said that it will not be launching its Cointap app. Although the company began accepting registrations from interested users that wanted to use the service, the e-commerce giant informed that even when they will not be launching the Cointap app, they will keep offering cryptocurrency trading services through DMM Bitcoin.