GMO Internet to open mining facilities in Europe

Renewable energy resources of Northern Europe will allow to decrease power consumption for GMO Internet mining centres
20 December 2017   1345

The Japanese giant GMO Internet announced its intention to take the leading positions in the sphere of mining of crypto-currency. Separate office will be opened in Northern Europe. This is reported on the official website of the company.

According to the publication, GMO Internet has already involved in its project a mining center that uses renewable energy resources of Northern Europe, which allows cutting costs through low energy consumption.

GMO Internet Mining Centre
GMO Internet Mining Centre

As the capacity accumulates, the company also plans to offer cloud solutions in the field of mining and sales of related equipment.

Through test operation using current technology, we confirmed that a certain level of profitability could be secured, and therefore GMO Internet officially decided to launch the cryptocurrency mining business.
 

GMO Internet

In its activity, the company intends to use the latest 7 nm * 1 chips and is currently working with partners in the field of semiconductors in research and development of high-performance computing graphics adapters.

It is expected that GMO Internet will begin cryptocurrency mining in the first half of 2018.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   91

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.