Japanese conglomerate SBI Holdings has jumped into the cryptocurrency mining industry after its involvement in an array of other crypto-related businesses.
The Tokyo-headquartered firm on March 22 announced the formation of SBI Mining Chip Co., Ltd. under which the company will manufacture crypto mining hardware.
The company, however, did not detail if it is going to make Bitcoin-specific mining devices or will manufacture mining systems for other digital currencies as well.
Betting Heavily on Crypto
The SBI Group already manages a wide-range of cryptocurrency businesses including a digital asset exchange, which was established in 2018. The company revealed that it is already involved in a crypto mining operation in the overseas market and is now expanding its grip on the sector by manufacturing mining devices.
“The SBI Group strongly promote on a wide range of businesses based on the digital asset, including cryptocurrency exchange business and other blockchain related businesses,” SBI noted. “The Group has practiced its cryptocurrency mining business at overseas and has now decided to expand its business scope to the manufacturing of mining chip itself and development of mining systems, through SBIMC.”
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In addition, the new subsidiary has joined hands with an unnamed US-based “large semiconductor enterprise” to carry out the development and manufacturing of the devices.
To lead the new business, SBI has appointed Adam Traidman, a serial Silicon Vally entrepreneur and an expert in the industry. With a software engineering background, the techie has years of experience working in the semiconductor companies.
Meanwhile, the conglomerate has recently established a new subsidiary to promote its MoneyTap service, which the company developed along with the blockchain-based payment firm Ripple.
Is It a Right Time to Enter the Market?
The Japanese giant is entering the mining business at a time when the sector is being rocked by the plunging prices of Bitcoin and other digital assets. Once a lucrative business, crypto miners, nowadays, are finding it hard to break even.
Despite this slowdown, mining hardware manufacturers are still betting big in the industry. The three leading miner-manufacturer – Bitmain, Canaan Creative, and Ebang – are pushing hard for a public listing in Hong Kong despite the exchange’s doubts about the sustainability of their businesses.