The giant Japanese IT giant has just announced an operating profit of 255 million yen (about $ 2.3 million) for its cryptocurrency business in the second quarter of this year.
The company published its financial report after a earnings request on Thursday, which indicated that the company's cryptic segment produced a total of $ 2.6 billion, or $ 23 million, in net revenue.
The amount generated in the encrypted segment was almost equally divided between the extraction and exchange activities, which represented 47 and 53% of net revenue, respectively.
That said, with operating costs rising to $ 21 million in just three months, GMOs recorded a relatively small margin of $ 2.3 million, or 10.95%. However, the figure seems more respectable if placed in the context of the net loss of GMOs of $ 6.6 million in the first quarter – mainly due to the negative revenue suffered by its trading business in the first two months of this year.
Although the GMO did not provide a breakdown of operating costs for the cryptographic segment in the second quarter, it indicated that a substantial part derives from the mining side of its business.
"Although the expansion and mining equipment progressed as planned and registered sales of 1.2 billion yen, mining profitability decreased due to the deterioration of the macro environment such as the stagnation of the price of bitcoin and the increase in the hash rate ", reads the report
. In fact, according to the latest report on the extraction of GMOs, dated August 3, the company seems to have increased its mining capacity in the second quarter. For example, the company extracted 512 bitcoins in the first quarter – less than 528 bitcoins of GMOs extracted in June 2018 alone.
In particular, these figures come shortly after the launch of their own 7nm bitcoin miners of GMOs, which were advertised as having the power of hashing and the lower demands for electricity.
Before now, the only profitable previous quarter for the GMO crypto business was the fourth quarter of 2017, a period when bitcoin prices rose to a record level of nearly $ 20,000.