GMO Cryptocurrency Recorded a Loss of Nearly $12 Million Last Year

Japanese Internet company GMO Internet (GMO) announced its annual results for the year ended December 31, 2018. The company was dragged down by the cryptocurrency mining business. The company turned a profit last year and eclipse 20.71 billion yen (equivalent to $186 million USD).

Although the net income of cryptocurrency business rose 8.6 times to 8.24 billion yen last year, the profitability of mining decreased in the fourth quarter, causing the cryptocurrency business to lose 1.36 billion yen (about $12 million USD).

GMO Chief Financial Officer Yasuda Yasuda said that the company is changing its mining business policy based on the current external environment, such as rising global Hashrate, bitcoin price, and mining machine demand, including restructuring internal mining (in-house mining structure will move the mining center to a region where electricity costs are cheaper). It is believed that the impact on earnings will be seen in the summer of 2019, and it will be decided to “cut the cable” and abandon the development, production, and sale of mining machines.

GMO announced last year that it will launch the stable currency “GYEN”. Yasuda said that the payment segment in the cryptocurrency business will maintain the existing policy and plans to issue GYEN overseas this year, and has established a subsidiary and appointed a person to be responsible. GMO is about to announce where GYEN will be issued.

In the fourth quarter of last year, GMO cryptocurrency exchanges fell 68% quarter-to-quarter. Yasuda Masada said that the cryptocurrency price in this season is at a low level and liquidity is also challenged, but the exchange can still make profits, and GMO will continue to increase the diversity and opportunities of trading currencies.