According to an announcement dated March 22, Japan-based financial giant, SBI Group has created a subsidiary that will focus on developing cryptocurrency mining chips. This isn’t a surprise as SBI has had interest in the cryptocurrency industry for a long time with most of its focus on Ripple’s technology. The company is heavily invested in Ripple, the Silicon Valley tech company behind the XRP token. The latest subsidiary will be called SBI Mining Chip Co., LTC. (SBIMC).
SBI Group Kicks Off SBI Mining Chip Co., LTC (SBIMC)
SBI mining will join mining hardware manufacturers like Bitmain and others. As reported by smartereum.com a while ago, Bitmain allegedly suffered significant losses during the cryptocurrency bear rally and especially during the Bitcoin Cash Fork war. While creating a mining chip manufacturing company might seem like a bad idea, SBI Group isn’t known to make bad investment decisions. So, the fact that they are investing more money into the industry shows that they’ve seen the potential of the cryptocurrency space. Part of the announcement was as follows:
“The SBI Group strongly promote [sic] on a wide range of businesses based on the digital asset, including cryptocurrency exchange business and other blockchain related businesses. The Group has practiced its cryptocurrency mining business overseas and has now decided to expand its business scope to the manufacturing of mining chip itself and development of mining systems, through SBIMC.”
This project will be led by the famous Silicon Valley entrepreneur, Adam Traidman. Traidman has been in the semiconductors and electronics business for many years. The announcement continues:
“The SBI Group will promote efficient, reliable and sustainable mining operations to develop a sound and solid cryptocurrency market.”
Before SBI Group decided to open a branch dedicated to developing mining chips, it mined Bitcoin Cash through a mining pool controlled by Bitmain. However, it stopped mining last year following negative news within the industry.
Bitcoin Cash (BCH) Price Today – BCH / USD
The co-founder of Bitmain, Jihan Wu, last September, said that SBI Group was trying to subvert the mining operations of the mining pool he controlled in a bid to help Craig Wright. Craig Wright has become one of the most controversial figures in the cryptocurrency space after the Bitcoin Cash hard fork war.
What do you think about this move by SBI Group to launch SBI Mining Chip Co., LTC (SBIMC)? Kindly share your thoughts in the comment section.