Japanese internet giant GMO has announced a plan to sell its “next-generation mining boards,” equipped with 7nm ASIC chips through an initial coin offering (ICO) next year.
Japanese conglomerate GMO Internet announced on Wednesday that its bitcoin mining business will launch an initial coin offering (ICO) next year. The purpose of the token sale is “to sell next-generation mining boards,” the company wrote, stating that:
We will issue tokens as a method to buy next-generation mining boards.
Read more here: news.bitcoin.com
Research more here:
*1 A token is a coin or a ticket that can be issued and managed independently on the blockchain. Issuer can attach unique benefits to the token to provide value. Token sale (ICO) is a mechanism to fund the projects of businesses and individuals through issuing and selling tokens or their cryptocurrencies. Cryptocurrencies are used for buying the tokens issued by ICO. ICO is an abbreviation of Initial Coin Offering.
【GMO Internet’s Bitcoin mining business】
Cryptocurrency (Bitcoin) mining business requires computers enabling highly sophisticated and intensive computation and also requires securing stable power supply to operate and cool the computers. Accordingly, GMO Internet is currently preparing to provide the following with an aim to enter the Bitcoin mining business.
1. We will use cutting-edge 7 nm*2 process technology for chips to be used in the mining process, and are currently working on its research and development with our alliance partner having semiconductor design technology to realize high performance computer for mining (a next-generation mining board). It will be possible to reduce power consumption (power consumption is 500W or less) compared to the existing mining machines with the same performance, and achieve a computational performance of 10TH/s*3 per chip.
2. 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 to control the costs of operating facilities. After preparing the facilities, we will launch the mining based on ready-made mining computers by December 31, 2017, which will lead to the full-scale entry into the Bitcoin mining business.
After the launch of the Bitcoin mining business, we will also sell our own next-generation mining boards.
*2 nm: nanometer. 1/1 billion meter. 1/1 million millimeter.
*3 TH: terahash. TH/s is a unit of hash rate (the amount of computation per second).
【Launching token sale for the sales of next-generation mining boards】
GMO Internet’s Bitcoin mining business will launch a token sale (ICO) in 2018, planning the sales of next-generation mining boards.
We will consider properly the laws and regulations that are applicable to us under the current legislation including Payment Services Act and the Financial Instrument and Exchange Act, and will be conscious of the protection of token purchasers and stakeholders’ profits when designing the token sale.
【Outlook for the future】
In addition to launching in-house mining in April 2018 (tentative), GMO Internet is planning the following for the Bitcoin mining business.
1. Cloud mining business (tentative)
Individuals or businesses can join the mining easily. We will sell mining resources (the amount of computation) of a next-generation mining center, and offer mining rewards depending on the resources purchased by our customers. Although individuals or businesses may find it difficult to invest in and manage mining equipment, they can join the mining through small amount of investment.
2. Sales of next-generation mining boards (tentative)
After manufacturing mining boards equipped with mining chips, they will be used in the next-generation mining center, and we will also sell them.
3. Supply GMO Coin with cryptocurrencies
We will supply GMO Coin (cryptocurrency exchange business registration number: Kanto Local Finance Bureau No. 00006), 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.
Most recent transaction records from around the world are regularly added to blockchain that is distributed and saved on the network. The process to add (“mining”) requires an intensive computation, as the exact blockchain data is added while ensuring the integrity of the transaction data. Therefore, people worldwide share computer resources on a single blockchain as they mine. Bitcoins are issued as a reward to the first person who has succeeded in mining. Cryptocurrency (Bitcoin) mining business requires computers enabling highly sophisticated and intensive computation and also requires securing a stable power supply to operate and cool the computers.
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