Kumamoto Electric Power Company and OZ Mining have announced that they will manage a cryptocurrency farm starting from August. The complex will contain 14,000 mining machines and is expecting to make a profit of 90 million yen by March 2020.
Kumamoto City is located on the Kyushu Island, Japan. Kumamoto Electric Power company has been involved for some time in promoting crypto mining farms in Japan, using the cheapest electricity sources. “Since the liberalization of the electric power market took place in early 2016, there are more and more electric power companies offering lower electric fees. In the Kyushu [Southern] region, I believe Kumamoto Electric Company offers one of the cheapest rates,” a sales agent at Kumamoto Electric Company told News Bitcoin.
Former economists have turned to mine cryptocurrencies
Alt Design, a startup that provides assistance in crypto and ICO related subjects, was founded in September 2017, Fukui, by a Japanese group of men (former employees in financial institutions). The company decided to start mine cryptocurrency shortly after it was set up, in November 2017, “We wanted to offer our clients and investors who are mainly Japanese a possibility to see the miners with their own eyes,” CEO Yuta Funayama stated.
Yuya Yamamoto told News Bitcoin that “Japanese people invest in miners abroad, but they expressed some worries saying that it’s harder to check what’s going on at the miner farms, especially if they are located outside of Japan. What we offer also, is the ‘Japanese quality’ service in which we believe the management of our miners is solid.” Alt Design started to mine Litecoin (LTC) and Ethereum (ETH) from March 2018. “Our employees all have a background in IT. The miners operate 24/7 and our staff rotate daily to check if everything is running smoothly,” Yamamoto explained, adding that, “we believe that our expertise is to tackle any incident quickly.” According to CEO, mining installations create a volume of 200 ETH and LTC per month.
In order to identify the ideal destination for its mining center installation, Alt Design has turned its attention to the location where the government offers subsidies for IT-based businesses. The municipality of Fukui has proven itself to be this place. “We offer companies which want to settle in our city to pay up to half of their rent for three years,” Hiroyasu Yoshida, a representative of Fukui Municipality explained.
The Hokuriku region, including Fukui, offer some of the most affordable prices for electricity compared to other regions of Japan.