Japan’s GMO Internet Records Drop Of 45% In Q1 2019 Regarding Crypto Mining Profits
Japan’s GMO Internet Sees Crypto Profits Decrease By 45% In Q1 2019
GMO Internet Group, a Japanese internet company, has recently its crypto-related profits drop by 45% during the first quarter of 2019. The company withdrew from the production of crypto miners in December last year, something which has affected the revenue a lot.
During the last quarter of 2018, the company had revenue of $212 million USD and only $117 million USD during the period which extends from January to March this year.
Another reason for this was that Bitcoin mining started to go downhill this year. Things started to get better in April, but the report from the company ends in March, so it will show any significant increase from the market.
The crypto exchange of the company was also not very successful during this timeframe as traders were not buying or selling many tokens.
Despite all the problems, though, the company has stayed fairly committed to the crypto space. Even as the price of Bitcoin dipped, the company kept most of its Bitcoin-related businesses open.
The company has also revealed, back in February, that it is getting ready to launch its own stablecoin soon. The stablecoin will be pegged to the Japanese Yen. It is clear that is a move that was inspired by Bitcoin losing most of its value during 2018, as investors would then be able to invest in an asset that will retain value.
According to Telegraph Japan, which also reported on this story, executives are currently looking at new ways to improve the market and raise the profitability of the company, as they are currently concerned that profits are down.
On the upside, production costs were lowered considerably, which helped the company not to lose much more money than in previous quarters. In the future, the company may have better results, as the price of BTC is already going up now.
As we have affirmed, the reports do not contemplate the so-called Bitcoin Renaissance, which started on April 1. Since then, Bitcoin was finally able to raise its prices again and to trade above $6,000 USD for the first time since November 2018.