With the announcement that Japanese company Ginco is expanding its mining capacity, Mongolia is set to experience a surge in crypto mining in 2019, despite the downturn in Chinese mining activity.
The company best known for its Japanese crypto wallet is tripling its output this year from 600 to 1600 miners in the Chinese province.
The news was unexpected given recent developments within the Chinese mining sector. Bitmain, who as of 2018 had 11 mining farms operating in China was forced to lay off 3000 of its staff in December having grown from 1000 employees. A recent statement from the world’s largest maker of cryptocurrency mining chips suggested it would be laying off up to 50 percent of its staff this year.
Ginco’s news comes just a day after Bitmain released more bad news for investors in China that it was stopping the development of their mega mining project in Texas due to the sustained bear market which dragged on through most of 2018.
The news from the Japanese company is certainly good news for Mongolia but not without its difficulties, suggests CEO Yuma Furubayashi who doesn’t necessarily see an easy ride ahead. He claimed that: “The business environment is increasingly harsh, but we can still produce a profit.”
The CEO also suggested that the company had other projects in the pipeline apart from the Mongolian mining expansion; such projects include providing a repair service for existing mining devices.
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