Cryptocurrency mining hardware manufacturers may be throwing in the towel
By Moris Beracha.- A large number of companies that have significantly invested in the production of cryptocurrency mining hardware may be throwing in the towel, driven by the stagnation of the market.
Some portals such as Amazon have had to sell mining machines, video cards, and power sources, among other equipment, at discounted prices to exhaust the existence of these equipment and of course avoid excess of inventory.
In early 2018, these products were sold at profitable prices, but the sharp drop in prices of Bitcoin, Ethereum and other cryptocurrencies led to a major beating in prices for these products.
In a press release, the Japanese consortium GMO Internet Inc., a competitive cryptocurrency mining hardware manufacturer in the market, announced its decision to cease operations in its cryptocurrency mining business.
The company, specializing in Internet infrastructure, reported that the losses of its business related to cryptocurrency mining will be totaling 35.5 billion yen (320 million dollars).
This amount includes both internal mining operations and the manufacture of specialized equipment for the business.
In the production of mining equipment, the consortium reported losses of 24.5 billion yen, about 221.4 million dollars, consisting mainly of accounts receivable.
GMO noted that most of the losses corresponded to an advance for the manufacture of specialized hardware.
Companies such as Asus and Xiaomi are also assessing the impact of the crypto market-wide crash on their internal finances and they do not dismiss radical decisions such as those made by GMO.
Like any trend, cryptocurrencies left many consequences in 2018; it is difficult to corroborate if it left more booms than busts, but the truth is that today, after the crash, there is much useless mining hardware leaving thousands of dollars in losses to some companies that were once tempted to create specialized products considering the high demand of an emerging market for a specific need.
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