Japan’s DMM Group Quits Crypto Mining Businessbr>
Japanese entertainment giant DMM Group is reportedly closing down its cryptocurrency mining business.
In October 2017, DMM started operating a mining farm in Japan’s Kanazawa city. The facility mined major cryptocurrencies such as bitcoin, ethereum, and Litecoin. The company also created a “research and development specialty lab” for crypto mining called DMM Mining Labo.
However, DMM now plans to exit the crypto mining business due to deteriorating profitability. The company said that it had underestimated security concerns of virtual currency mining business.
“We would like users to experience the extraordinary mining site in their lives,” DMM said. “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.”
In an interview with Nikkei, Keishi Kameyama, founder of DMM.com’s mining business, said that going forward, he will work hard on DMM Bitcoin, one of the 16 regulated cryptocurrency exchanges in Japan, and blockchains.
The news came after another major Japanese company, GMO Internet, announced that it will stop the development, manufacture, and sales of crypto mining machines. In its announcement, GMO said that the profitability of its in-house mining business has 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.”