A new crypto mining farm will start operations from August which is owned by the Kumamoto Electric Power Company in alliance with the OZ Mining Corporation. The aim of this firm is to operate with 14000 machines for mining so that a profitable level of 90 million yen is reached by the month of March 2020.
The location of the parent companies, as well as the upcoming mining firm, is at Kumamoto City. Located in Kumamoto Prefecture, which is on Kyushu Island, southern Japan, the company also has plans to have several crypto mining factories that would be set up across Japan. They would avail of cheapest electricity prices as offered by KEPCO or Kansai Electric Power Company or TEPCO, Tokyo Electric Power Company.
The cheap electricity rates are possible due to the liberalization of the sector that has taken place since 2016. Hence the competitive scenario has led to several electric power companies being able to offer lower electric fees. One of the companies offering the cheapest rates in the country is the Kumamoto Electric Company.
This sector is slowly evolving in different parts of the country. For instance, there is a startup company on cryptocurrencies that is run by a group of Japanese businessmen who were former bankers and they have established a factory for crypto mining which has 500 miners. It is located in a coastal city of Japan called Fukui.
Alt Design is another firm that was founded in Tokyo in 2017; this offers different kinds of ICO and cryptocurrency services such as consultancies as well. Its CEO and founder, Yuta Funayama decided to start a crypto mining initiative within a few months after forming the company. He stated that it would help their clients, as well as investors, be able to see the miners and know their operations by their own eyes. Indeed, nowadays the investment in cryptocurrency platforms is on the rise; exchanges and other services offer convenient terms such as payment by gift cards as well such as iTunes gift card.
He states that many people invest in miners in other countries, but are often apprehensive about what are the operations that go on in the miner farms. He states that his company has been offering to mine in Ethereum and Litecoin since the beginning of 2018. The employees are all IT personnel and there are 24/7 shifts that ensure that everything works smoothly.
He states that the local government offers subsidies to IT companies that install and run their businesses from local factories that lie unused. For instance, the Fukui municipality offers low fees for businesses to set up in their area and even reduce rent by half.
Electricity might be a competitive service but it is not cheap everywhere in the country. However, due to the liberalization move, there are variations in costs of electricity, such as electricity is cheap in places like the Hokuriku region, Fukui which is part of northern Japan.