GMO minimizes the production of mining equipment. What was the reason?

Japanese Internet giant GMO Internet Group will leave the sector manufacturing mining-equipment mining bitcoins. Citing a “mega loss” in the fourth quarter of this year, an equipment manufacturer stated that “no longer develop, produce and sell” for miners. Taking into account the changes in the current business environment, the company management came to the conclusion that to recover the carrying value of the business assets of the mining division is not possible. So they “decided to record extraordinary loss”.

Plans GMO relocation of mining-units in “region, which is a more environmentally friendly mining cryptocurrencies with a lower cost of electricity”. While doing GMO news the latest victim of a bearish stock market throughout 2018, due to which the profitability of mining has decreased significantly.

Writes, GMO’s consolidated loss for the fourth quarter of 2018 amounted to more than $ 300 million, while unconsolidated losses reach 335 million.

The representatives emphasize that such a significant loss will not affect the “financial integrity” of the company. We will remind, in November the manufacturer reported a record performance of its cryptocurrency projects for the 3rd quarter, including sales of mining equipment. Then the total profit of the company amounted to 22.8 million dollars.

Informed Cointelegraph already told you about the sale of mining equipments in China, and massive layoffs in major companies mining cryptocurrency Bitmain. In addition to the closure of the Israeli troops last week, there were rumors about a possible imminent reductions up to 50 percent of employees Bitmain.

More data look at cryptodata. There is a good.

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