Cheap energy tempts Japanese miners to move to Mongolia
The combination of cheap electricity and a relatively cold climate attracts Japanese miners to Mongolia. Companies that have settled there can continue their business profitably.
Mongolia: cold and stormy but profitable
Ginco, based in Tokyo, operates two mining farms in Ulaanbaatar, the capital of Mongolia. One of them is located in an underground building. Ginco decided to start working in Mongolia in October, a period in which competitors considered putting their miners off and selling. It simply became too expensive.
Ginco has now run 600 minors, and plans to expand that number to 1,000 in the first quarter of 2019. “The working environment is cold and stormy, but profitable”, says CEO Yuma Furubayashi of Ginco Mongol.
The market has been ruthless for companies in the mining industry over the past year. During that period, the value of bitcoin has dropped significantly, with the result that there are quite a few companies that had to stop. The Japanese CMO is an example of this.
Mongolia attracts miners
Due to the cold weather and cheap electricity, Mongolia is still one of the few countries where bitcoin miners can still make a profit. It is slowly becoming a popular destination for Japanese miners. Also (certain regions in) America and Sweden are popular.
Energy costs are an important factor in the profit calculation. Prices of electricity are about a third of what is paid in Japan, and lower than in China.
ITools, another Japanese entity, also started a mining company in Mongolia last year. “Even though the market is in a minor position, we are still making a profit in Mongolia.”
In the past year, crypto-friendly regulations were accepted by the central bank of Mongolia. Subsequently, Mobicom – the largest telecom provider in Mongolia – introduced its own crypto coin: Candy.