In this bear market, the biggest casualties so far, have been bitcoin mining giants. Last month, there were reports that said, Chinese bitcoin giant, Bitmain had laid off a significant portion of their Bitcoin Cash laboratory staff members.
As earlier reported by Crypto-news India, the news report about entire Bitcoin Cash development team being laid off was broken by Blockstream CSO Samson Mow. He said citing some Chinese publications that around 50 workers of the company have been set to go off this week, all related to the Bitcoin Cash efforts of the company. Many of them had joined recently, and only a one week notice was given to all of them. They were reportedly working on company’s Bitcoin Cash GO client.
Following that, Japanese cryptocurrency mining company, GMO, also shut shop citing non-profitability of operations. The company had said, “The profitability of the in-house mining business of GMO Internet Group decreased as the cryptocurrency price declined and our mining share did not increase as expected due to the rise of the global hash rate, which went beyond our initial assumption. 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. Regarding the business assets held by the two foreign corporations, based on the computation of the present value of estimated future cash flows and the result, it has been decided to record an impairment loss, etc. of approximately JPY 11.5 billion on the consolidated accounts.”
Now after this development, Japanese e-commerce giant DMM has followed suit with the closure of its mining farm in Kanazawa. Unsurprisingly, this firm also cited “deteriorating profitability” as its main reason. DMM added, “the withdrawal process such as the sale of the machines will go over to the first half of 2019.”
Although Japan has been a pioneer when the topic has touched regulations, it is nonetheless disheartening to watch companies go out of business, due to no fault of its own. The important point is not to lose hope and stay optimistic about bulls making a comeback soon.
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