Two of the largest corporations in Japan, SBI Holdings and GMO Internet Inc., have found their way into the bitcoin mining sector through a connection with Frankfurt-based company and owner of the world’s largest Bitcoin mine, Northern Bitcoin AG.
According to Bloomberg, an agreement between the two Japanese firms and Whinstone Inc., a subsidiary of Northern Bitcoin AG, will enable SBI and GMO to start their mining operations in the coming months by using rented capacity at Northern Bitcoin’s largest mining facility in Rockdale, Texas.
Northern Bitcoin is reportedly a 100% green mining firm that shifted from directly mining Bitcoin for profits to planning and operating mining facilities for investors. To do this, the German company merged with the US mining firm Whinstone last year to set up the largest bitcoin mining facility in the world, covering over 100-acres of land (approx 57 football fields), which can then be leased to large investors like SBI and GMO.
“Renting out capacity to SBI Crypto, a unit of SBI Holdings, and GMO may help Northern Bitcoin to get further large, crypto-savvy investors on board,” Bloomberg cited people familiar with the matter.
Institutional Investors And Crypto
SBI and GMO’s entrance into the mining sector is an indication that institutional investors are becoming willing to get involved in the cryptocurrency industry. Such developments can certainly increase the adoption rate of Bitcoin and other cryptocurrencies.
Last month, CryptoPotato reported that Bitcoin’s hash rate broke a new ATH. The report suggested that more investors are participating in Bitcoin mining operations and investing in sophisticated mining rigs and hardware because they believe in the long term potential of the cryptocurrency. With two large institutional investors about to join the bandwagon, it’s interesting to see what the effect will be on Bitcoin’s hash rate.
Moreover, it’s worth noting that just a few days ago, the hashrate broke yet another record, surging to almost 120M TH/s.