A new joint venture is forming mining cryptocurrencies in Japan. According to reports, Kumamoto Electric Power Company and OZ Mining Corporation have partnered up to start a mining operation in August which will install a total of 14,000 mining machines in Southern Japan and intend to reach a profit of 90 million yen in March 2020.
The mining will be made in Kumamoto City, which is located in the Kumamoto Prefecture on the Kyushu Island. The partnership with Kumamoto Electric Power Company will assure that the mining facilities will use cheap electric energy, something that is becoming a trend in Japan with other companies like Kansai Electric Power Company and Tokyo Electric Power Company doing the same.
After the trend of the liberalization in the electric power market in early 2016, more and more companies are offering lower rates as a way to attract businesses because of the cheap rates and increase their profits.
Another Factory in the Making
A related startup has been created by a group of Japanese men that worked in the banking industry. A crypto factory with 500 miners will be installed in the country side of Fukui, a Japanese coastal city located in the Chinese side of sea.
This new company will be created by Alt Design , which was founded last year in Tokyo and it offers a lot of services like ICO consultancy. At the end of last year, the CEO of the company, Yuta Funayama, has decided to start financing mining operations in Japan.
The main idea of the company is create a local market for mining. As many Japanese invest in mining, some say that it is hard to actually verify the mining farms as they are located in overseas countries. Because of this, the company is focused on creating a Japanese business with “Japanese quality” for the local consumers.
The miners of the company operate 24/7 and the staff regularly checks if everything is alright. In a single month, the facility already generates a total of 200 ETH and LTC. The company has decided for Fukui as the rates of the electricity are low and have some incentive from the government, which pays half of their rent to help the businesses.
While electricity is not necessarily cheap in Japan, these companies are looking for the best business places to enjoy the best possible rates and remain competitive in the market.