SBI Holdings, a financial services company group based in Tokyo, Japan, have announced that as a part of the company’s strategy on digital asset related businesses, they will be entering the mining business. They have established SBI Mining Chip Co. in order to manufacture mining chips and the development of mining systems.
They revealed that they are already involved with a crypto mining operation outside of Japan, but now would like to expand their grip on the sector by manufacturing mining devices. Adam Traidman, an “expert with a high level of expertise in the field of leading-edge semiconductors and other electronics”, has been appointed to run the mining offshoot. Traidman has many years experience working in Silicon Valley.
SBI already manage a wide range of cryptocurrency businesses, including SBI Virtual Currencies who offer Cryptocurrency related services, including an exchange. Their mission is to “create and nurture” a sound market for customers using virtual currencies. The company has been registered as Virtual Currency Exchange Service Provider since 2017.
Mining Is A Risky And Potentially Unprofitable Game
Crypto mining is an unpredictable game and with ASIC mining surpassing GPU mining, costs are much higher. The industry has seen profits fall during the bear market. As the price of crypto drops, so does the the profit from mining, and vice-versa. And the higher the hashrate, the lower the mining reward. Bitcoin hashrate changes can be seen here. There is also the issue of how frequently the blocks are mined, the more frequent the blocks, the higher the mining reward.
At the moment, the Bitcoin price doesn’t justify buying a mining rig. Crypto traders and miners alike will be waiting for the price to rise. However, this hasn’t stopped mining giant Bitmain who are set to install 200 000 new miners in China this year.
However, it’s not all doom and gloom. According to BlockExplorer News it has become more difficult to justify starting a mining operation for most people. “However, with fewer miners, there are greater chances to earn mining rewards”.