September 7, 2017
GMO Internet to Enter Bitcoin Mining Business: Contributing to development of a “new borderless economic zone” through mining infrastructure of Bitcoins
- GMO Internet, Inc.
Tokyo, Japan – September 7, 2017 – GMO Internet (https://www.gmo.jp/en/ ) announces that it has resolved today to launch a new Bitcoin mining business utilizing a next-generation 7 nm*1 semiconductor chip in the first half of 2018.
Since its foundation, GMO Internet Group has provided Internet and service infrastructure, and the development of Internet has eliminated “information” boundary from the world. Cryptocurrency (Bitcoin) is a “new universal currency” that eliminates boundaries related to exchange of “value.” It does not depend on a centralized organization. Cryptocurrency (Bitcoin) is creating a “new borderless economic zone.”
Entering Bitcoin mining business will enable GMO Internet to support mining infrastructure of Bitcoins, which are the “new universal currencies,” by leveraging our accumulated know-how on Internet Infrastructure business and Internet Finance business.
*1 nm: nanometer. 1/1 billion meter. 1/1 million millimeter.
With an aim to increase the amount of information on the Internet, since its foundation in 1995, GMO Internet Group has provided mainly Internet Infrastructure services. As of today, businesses in Internet Infrastructure segment each hold top share in their respective markets in Japan, and GMO Internet Group is growing into a business group that comprehensively develops Internet businesses. GMO Internet has recently expanded into the Internet Finance segment. In addition to existing Internet Securities and Payment segments, we are preparing for the launch of Internet banking, and have entered the cryptocurrency exchange business in May 2017.
Internet, which is our business domain, has changed the way not only personal lives and business but the world work by gathering various information through digitization and eliminating “information” boundaries, such as time and space constraints, from the world.
In the process of development, Internet has also digitized currencies in addition to information and created cryptocurrencies including Bitcoins. Cryptocurrency is drawing attention as it eliminates boundaries related to exchange of “value” by reducing time and costs spent on international money transfers and payments with legal currencies, and as it enables instantaneous exchange (trading) of “value” with any country. We believe the cryptocurrencies will develop into “new universal currencies” available for use by anyone from any country or region to freely exchange “value,” creating a “new borderless economic zone.”
Under such situation, it is important for cryptocurrencies, including Bitcoins, to secure its reliability as currency in order for them to further develop and spread. Bitcoins can be regarded as a distributed system whose credibility is secured by mutual monitoring by network participants, as opposed to legal currencies which are a centralized system whose credibility is secured by the issuer, and high transparency is one of the features of the Bitcoins. And GMO Internet contributes to healthy balance of the Bitcoin network through mining.
Accordingly, we have decided to launch Bitcoin mining business to support mining infrastructure of Bitcoins by leveraging our accumulated know-how on Internet Infrastructure business and Internet Finance business, with an aim to contribute to development of cryptocurrencies.
Cryptocurrency (Bitcoin) mining business requires computers enabling highly sophisticated and massive computation and also requires securing stable power supply to operate and cool the computers. We will use cutting-edge 7 nm process technology for chips to be used in the mining process, and jointly work on its research and development with our alliance partner having semiconductor design technology to realize high performance computer for mining (the mining board).
In terms of power supply, we will operate a next-generation mining center utilizing plentiful renewable energy in Northern Europe, and secure clean and inexpensive power supply, which will allow us control the costs of operating facilities.
[Next-generation mining center (plan)]
|Hardware (estimate)||Specification: computational performance – 10TH/s; power consumption – 500W or less|
Mining chip: 50,000 chips (increase stepwise)
Computational power: 500PH/s
|Equipment||Rack, air conditioning, power distribution, fire fighting, security|
|Power supply||Renewable energy (geothermal energy, hydro power)|
■Outlook for the future (TBA)
1. Cloud mining business
An individual or a business can join the mining easily. We will provide a cloud mining service to raise funds for a next-generation mining center equipment from users and distribute earnings to users. Although an individual or a business may find it difficult to invest in and manage mining equipment, through small amount of investment, the Bitcoins will be distributed to users if a next-generation mining center succeeds in mining and Bitcoins (rewards) are obtained.
2. Sales of next-generation mining boards
After manufacturing mining boards equipped with mining chips, they will be used in next-generation mining center, and we will also sell them.
3. Supply GMO Coin with cryptocurrencies
We will supply GMO Coin (application for the registration of cryptocurrency exchange business is pending), our consolidated subsidiary, with mined cryptocurrencies including Bitcoins, through which GMO Internet Group will contribute to an increase in diversity and liquidity of the cryptocurrency market.
Bitcoin is one of the cryptocurrencies, and its market capital is approximately JPY 8 trillion*2. All transaction records are regularly added to blockchain that is distributed and saved on the network, through which data fraud is prevented and Bitcoins are kept integrated and safe. Blockchain data, which is distributed and saved on the network, is added while ensuring the integrity of the transaction data based on the rules, so the process to add (“mining”) requires a massive computation. Therefore, people worldwide share computer resources as a single blockchain as they mine. If mining succeeds, Bitcoins are issued as a reward.
*2 Calculated based on Bitcoin’s market capital and expected rate (JPY 110; as of September 7, 2017).
GMO Internet Group
GMO Internet Group is an Internet services industry leader, developing and operating Japan’s most widely used domain, hosting & cloud, ecommerce, security, and payment solutions. The Group also includes the world’s largest online FX trading platform, as well as online advertising, Internet media, and mobile entertainment products. GMO Internet, Inc. (TSE: 9449) is headquartered in Tokyo, Japan. For more information, please visit http://www.gmo.jp/en/ .
GMO Internet Group
Group Public / Investor Relations