GMO Internet Leaves Bitcoin Mining Hardware Sector After Enduring Huge Loss

Japanese IT giant GMO Internet has recently revealed it is leaving the bitcoin mining hardware sector after it endured a huge loss this year, over the cryptocurrency ecosystem’s year-long bear market.

Through a regulatory filing, according to Finance Magnates, the IT giant revealed that as the price of cryptocurrencies drops, the profitability of its crypto mining chips drops as well. The filing reads:

After taking into consideration changes in the current business environment, the Company expects that it is difficult to recover the carrying amounts of the in-house-mining-related business assets, and therefore, it has been decided to record an extraordinary loss.

The company’s move comes little over a year after it decided to enter the sector, and a shortly after it revealed its 7nm bitcoin miner, which it claimed would be an influential machine in the industry over its high hashing power and low electricity consumption. A key reason behind its move, the report states, is declining user interest.

The ‘extraordinary loss’ it refers to is of 35.5 billion Japanese Yen (JPY), equivalent to about $318 million. These losses, it adds, will see GMO Internet no longer “develop, manufacture, and sell mining machines.” Despite the move, it’s still set to continue its in-house mining operation, although it’ll relocate it to a mining center where it’ll pay less for energy.

GMO’s mining business has seen it lose over $5.5 million in the third quarter of this year, and $3.5 million in the second quarter. As CryptoGlobe covered the ASIC producer is now down over $8.7 million since the first quarter of 2018.

The IT giant also has its own cryptocurrency exchange called GMO Coin, which as covered decided to only list BCH and not Bitcoin Cash Satoshi’s Vision (BSV). The company is set to launch its own yen-backed stablecoin next year, and launched its BTC mining operation in September of last year.

Notably this year’s bear market has seen various cryptocurrency miners shut down their operations, and as such it’s notable GMO is still running its machines. As covered, bitcoin’s hashrate plummeted as miners kept struggling to stay afloat. This, according to some, reduces the network’s security.

Travala’s Token AVA Jumps Following Announcement of Partnership with Expedia

Michael LaVere
  • Binance-backed cryptocurrency travel booking platform Travala has announced a partnership with Expedia Group.
  • Travala's native token AVA appreciated more than 20 percent following the announcement.

The Binance-backed travel booking website Travala has announced a new partnership with the online travel agency Expedia Group. 

According to a press release published July 6, Travala and Expedia have joined forces to offer consumers a frictionless cryptocurrency travel-booking experience. The release claims more than 700,000 Expedia Group hotels and accommodations have been made available via, in addition to the platform’s existing 2 million hotels across 230 countries. 

Juan Otero, CEO and co-founder of Travala, said the new partnership reflected the rise in popularity for cryptocurrency. He also explained that consumer travel was on the rise following months of COVID-19 imposed shutdown. 

He said:

Our latest month-on-month data shows consumer confidence and the desire for travel is returning, with an 81% increase in room nights booked and website traffic up 50% week-on-week.

Binance CEO Changpeng Zhao said Travala had proven its ability “to build a world-class travel booking platform” and was excited by the partnership with Expedia. 

AVA, the native token for Travala, underwent a subsequent price increase following the announcement. As of writing, the coin has appreciated more than 20%. 

Altcoins Move up as Bitcoin Stalls

The AVA token is not the only in the cryptocurrency space growing exponentially so far this year. While the price of bitcoin has been range-bound moving between $9,000 and $10,000 since the beginning of May, various altcoins have been moving up.

Over the last 6 months, the price of BTC is up little over 13% according to CryptoCompare data, while other altcoins have been moving up. Most of these are related to the decentralized finance space, or to blockchains launching new products or announcing specific partnerships.

VeChan's VET, for example, surged after it was announced VeChain was attending the World Artificial Intelligence Conference 2020, hosted by the Shanghai Municipal People's Government. The conference will also be attended by Microsoft, Alibaba, Tencent, Huawei, and Amazon. One VET is changing hands for $0.0148, up from $0.,0055 in January.

As CryptoGlobe reported, Kyber Network's KNC tokens have risen over 650% year-to-date thanks to the upcoming Katalyst update, which will allow token holders to earn ETH rewards while participating in governance by staking their tokens. 

Another altcoin that moved up significantly is OKEx's OKB cryptocurrency. The token, which gives various advantages to the bitcoin exchange's users, is up 74% over the last six months, going from $2.78 to $5 at press time.

day_CryptoCompare_Index_OKB_USDT_231_11594045158429.pngSource: CryptoCompare

OKEx's OKB isn't tied to decentralized finance protocols, which Waves CEO Sasha Ivanov warned could be turning into the  next ICO bubble, but is instead tied to one of the leading crypto exchanges in the world. 

Decentralized finance protocol Aave has also seen the price of its LEND token surge so far this year. While in January the tokens were trading at $0.017, they are now $0.175 -- a 750% increase.

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