GMO Cryptocurrency Mining and Exchange Business Nets $2.3 Million in Q2
GMO's Q2 Profits for Crypto Business Totaled $2.3M
Recently, Japan-based IT company GMO cryptocurrency miner and exchange announced that it had made an operating profit worth 255 million yen (approximately $2.3 million) on its digital currency platform in the second quarter of 2018. Overall, the cryptocurrency segment of the firm amassed a net revenue of 2.6 billion yen ($23 million) according toe the financial report released last week.
Notably, the money collected form the cryptocurrency division was almost equally shared between the trading platform and mining services. However, the margin of the profit could have been bigger, were it not for the substantial increase in operational expenses. Still, the profits present a significant improvement in the firm’s performance which was appalling in the first quarter of the year. Over that period, GMO record losses amounting to $7 million, mainly due to negative revenue in the trading platform.
While GMO did not avail a breakdown of the operational expenses in the cryptocurrency division in the second quarter, there were pointers that a large portion was consumed by the mining infrastructure. In this regard, the report stated that despite the successful expansion of mining services and enrollment of new clients, the profitability of the mining sector declined due to the fluctuation in the value of Bitcoin and the increase of the hash rate.
As per the latest mining report presented by GMO, the company revealed that it had increased its mining activity in the second quarter of 2018. Precisely, the company mined 528 BTC in June, a figure that is well above the 512 BTC mined in the first quarter. The reason behind this rapid increase in the introduction of GMO’s proprietary 7nm mining hardware, which consume power efficiently while increasing the hash rate. Before this incidence, the only time GMO had made profits was at the end of last year, when Bitcoin’s value was at a record high.