Japanese internet giant GMO INTERNET Group has launched a quitting announcement on Dec.25 to stated that the firm will no longer manufacture, develop or sell cryptocurrency mining hardware devices.

According to the public document, the company decided to quit the Bitcoin mining hardware sector due to an “extraordinary loss” in Q4 2018.

“Regarding the current mining machine markets, the environment is increasingly competitive because of the decreased demand mainly due to the decline in the cryptocurrency price, the decline in the sales price, etc. After taking into consideration changes in the current business environment, the Company expects that it is difficult to recover the cryptocurrency mining business-related assets through selling mining machines, so the Company has decided to stop the development, manufacture, and sales of mining machines, thereby recording an extraordinary loss.”

The document also disclosed the financial data of GMO’s cryptocurrency mining business. On a consolidated basis, the total mining business reported a loss of 35.5 billion yen, including the in-house minging impairment loss of JPY 11.5 billion; and JPY 24 billion the loss of mining machine development, manufacture and sales. Along with a 38 billion yen non-consolidated losses which shocks the crypto community.

Ouch, GMO lost 24 billion yen ($218 million USD) trying to make ASICS to compete with @JihanWu, then gave up. Lost another 11.5 billion yen ($104 million USD) trying to mine with them. https://t.co/gJEOqiOOeQ

— Edmund Edgar (@edmundedgar) December 25, 2018

It was reported that GMO launched in-house mining operation in December 2017 in Switzerland via its two wholly-owned subsidiaries, GMO-Z.com Switzerland AG and the mining company GMO Internet.

Initially, its mining business went on well and became a rival to Bitmain and other veteran mining manufacturers. Actually, even in the previous quarter, the company has reported strong performance of its cryptocurrency projects. According to the financial report, GMO’s mining business profits has totaled 2.6 billion yen.

However, everything changes in Q4. The significant decrease in cryptocurrency price and the cutting down demand for cryptocurrency mining which effects the sales price of mining devices. As thus, a major loss exist which push GMO to make the decision to bow out.

The firm will keep an in-house mining division in a place with cheaper electricity.

It is also worth to notice that, GMO is not the only mining hardware producer tightening its belt under current bear market. Of late, Bitmain, the demonstrated mining giant has also decided to close its Israeli research facilities and there are rumors circulating the firm is laying off a substantial number of workers. Although Bitmain claimed that is a normal staff turnover based on the business performance.