SBI Holdings, the Japanese financial services giant who are well immersed in the crypto industry and bullish on Ripple (XRP), is now delving into the mining sector by establishing a new subsidiary to manufacture cryptocurrency mining chips and systems.
According to a press release published on March 22, the mining manufacturing subsidiary is called SBI Mining Chip Co. (SBIMC) and is based out of Minato-ku, Tokyo. The subsidiary is apart of SBI’s strategy to develop digital asset-related businesses.
The appointed representative of SBIMC will be Adam Traidman, a former NASA veteran, who has over 20 years of experience in computer chip design and electronics, as well as advanced knowledge in the field of electronics centering on cutting-edge semiconductors.
SBI Sees the Digital Currency Mining Industry as a Giant Business Opportunity
The downturn of the Bitcoin and crypto markets last year took its toll on some of the largest digital currency mining operations, resulting in extraordinary losses leading companies to halt all operations.
Even Japan’s largest domestic digital currency mining operation, GMO Internet Co., was forced to stop manufacturing and selling mining machines in 2018. A multitude of other large mining companies have shut down as well, leaving the digital currency mining manufacturing industry in the dust.
However, because of this, SBI sees an opportunity to become a world leader in the development and manufacturing of cryptocurrency mining chips and systems.
The conditions to get into this type of business now have never been better, as companies in the semiconductor area need to sell GPUs if they want to remain profitable. There have been very few buyers as of late, which presents opportunities to negotiate better deals.
As well, the cryptocurrency industry has already experienced a massive bear market which has likely reached (or already passed) a market bottom. Therefore, if the markets do turn around, SBI will be in the right position for a giant business opportunity with SBIMC.
As previously reported by IIB, Bitcoin miners in China are turning bullish on Bitcoin as they prepare their mining farms, make deals with electricity companies, and purchase new and used Bitcoin miners from fallen digital currency mining companies.
Do you think SBI knows that the cryptocurrency markets will be turning around soon? Will SBIMC become the leader in cryptocurrency mining manufacturing? Let us know what you think in the comment section below.