[2018-02-13] Internet Giant GMO Plans Bitcoin, Bitcoin Cash Cloud Mining Launch

[Terraformer]

Japanese Internet Giant GMO Plans Bitcoin, Bitcoin Cash Cloud Mining Launch in August

GMO Internet, a multi-billion publicly listed Japanese internet and technology conglomerate, has unveiled plans to launch its new bitcoin cloud mining service in August.

Founded in the early 1990s, Tokyo-based GMO announced its foray into the cryptocurrency space in September with a multi-million-dollar investment into a new mining venture. Crypto mining sees miners gain newly minted coins as reward for creating blocks of validated transactions and including them in the blockchain. An energy-intensive process, crypto mining profits are made when mining rewards exceed the cost of mining resources and electricity costs. At the time, GMO also hinted at entering the cloud mining space to enable customers to rent its mining equipment’s hashrate.

With an announcement on Friday, GMO has now confirmed its plan toward a ‘tentative’ launch of its new cloud mining service, called Z.com Cloud Mining, in August. To ramp up interest, the company will hold information sessions in 9 cities across the world in March. They are: Tokyo, New York, Los Angeles, London, Frankfurt, Hong Kong, Singapore, Zurich, Dubai.

“Before entering the cryptocurrency mining business, we have announced that we are planning to offer the cloud mining service,” the company said. “We have already been receiving inquiries about our cloud mining service, so from March 2018, GMO Internet will hold the information session in 9 cities to meet the needs of the companies or businesses worldwide who have announced their intention to participate in the cloud mining.”

On offer is a two-year rental contract for $5 million (approx. 550 million JPY), a fee that will include power costs, land, maintenance and security costs over the two-year period for the facility. The cloud mining operation will specifically support cryptocurrencies mined on the SHA256 algorithm, namely Bitcoin and Bitcoin Cash. The internet giant says it plans to accept up to 8 such contracts a month.

With the substantial contract price at hand, GMO adds it is considering a cheaper alternative service that “allows an individual or a business, who may find it difficult to make massive investment in and manage mining equipment, to participate in mining.”

While details of the facility are scarce, it is likely to be in Northern Europe where GMO launched its mining center ‘utilizing plentiful renewable energy’ in December. The internet giant further reiterated that cryptocurrencies mined.

https://www.ccn.com/japanese-internet-giant-gmo-plans-cryptocurrency-cloud-mining-launch-august/

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[jjacob]

It is interesting to note that traditional corporate giants are getting into cloud mining, but the ticket size seems to be too large at $5Mn.People who have $5Mn might be ready to actually invest in mining rigs and mine on their own. It is for the smaller ticket transactions that cloud mining contracts appear attractive.

[prehisto]

Honestly I do not understand why should someone use cloud mining instead of just starting mining. Ok, it could be cheaper at the first but i think that there is one fundamental problem with this
" Why should someone give out heir mining rig if they can make money by mining themselves ?"

In this particular case its clear they they want to test their system before going in the mining industry themselves. 

[CryptoBry]

It is interesting to note that traditional corporate giants are getting into cloud mining, but the ticket size seems to be too large at $5Mn.People who have $5Mn might be ready to actually invest in mining rigs and mine on their own. It is for the smaller ticket transactions that cloud mining contracts appear attractive.

You are right with this assessment. Maybe they are just offering that big ticket part due to good number of inquiries but will eventually have an affordable packages soon. It is really nice to see that many big corporations are now slowly getting into the business related to cryptocurrency mining. These firms must be seeing a brighter and wider market which we small players are obscured to see as we are more concerned with our own falling cryptocurrency holdings. Since companies like this got the money to heavily promote their own offerings this can be a good opportunity for cryptocurrency market to get promoted too.