Despite Crypto Losses, GMO Internet’s Bitcoin Mining Business Had A Solid 2018 Posting $197 Million In Profits
Despite Crypto Losses, GMO Internet Had A Solid 2018
The Japanese IT giant GMO Internet, Inc. was a prominent piece of the crypto mining manufacturer industry in the country last year. However, despite being part of the industry, which had severe losses at the end of 2018, the company had a very positive report on last year’s earnings.
According to the results of the 2018 fiscal year, the company operated with a profit of $196,99 million USD during the year. However, its crypto businesses ended up in losses. The amount of money represents a number that is 23,5% higher than last year, which only saw a growth of 3.7%.
The reports also indicate that the ordinary profit of the company rose by 10.5% in the year. Net profit per share, however, was actually at a loss.
The Future Of GMO Internet
While the company had a pretty good performance last year, the report did not state whether the company believes that 2019 will be better or not. According to the company, it is not easy to predict the results of the following year as the market is affected by various economic conditions, which make it impossible to give an accurate report of the future.
In any case, the profits of the company will not depend on mining in 2019. In December last year, the crypto mining sector of GMO Internet took a hit and the company decided to shut down all the operations related to these markets. Only a very small part of the operations will continue and they will be moved to another region, which is considered less power expensive.
This happened after the company suffered heavy losses related to in-house mining, an industry that basically collapsed at the end of 2018. The company will also stop developing and manufacturing mining machines, as the market is considered to be unprofitable.
GMO Internet was not alone in having a rough end of the year. Bitmain and other mining companies that were very successful in 2017 and during the first half of the year also had trouble and Bitmain was not even able to launch its awaited Initial Public Offering (IPO) on the Hong Kong Stock Exchange.