GMO Internet, a Japanese company, published a report on its operating losses from the crypto-industry, which amounted to about $ 11.75 million – as reported by CoinDesk.
GMO Internet is an IT technology giant with headquarters in Shibuya, Tokyo and more than 25 subsidiaries. Yesterday, February 12, a loss report for 2018 was published on GMO Internet’s website. According to the report, cryptocurrency caused the company losses of 1.36 billion yen (equivalent to 11.75 million US dollars).
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GMO Internet : what losses did the cryptocurrency bring
On the morning of February 12, a report on financial results for 2018 was published on the official GMO Internet website. The company has published documents on the income and losses of its "common crypto-segment". The amount that GMO Internet received for 2018 amounted to 74.51 million dollars, which is 11.75 million dollars less than last year.
"In the fourth quarter, the biggest losses occurred in the crypto-mining segment, which accounted for 60 percent of the annual decline in miningMining
– is a type of activity for creating new blocks in the Blockchain to ensure proper system operation. Details profitability." – from the GMO Internet report.
The GMO report also states that the loss for the year does not include "extraordinary expenses" of 35.3 billion yen (or $ 319.23 million). In connection with the loss-making cryptocurrency business, the company announced that it would change its business planning strategy in the 2019 fiscal year. According to the report, the company will soon move the mining-centers.
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The company also stated that the reason for the loss is "the unchanged share of GMO in mining". Recall that at the beginning of the 2018 fiscal year, company representatives reported that they expect an increase in the mining share. This did not happen due to the growth of "hashrate", the decline in the price of Bitcoin, as well as the purchase of additional expensive computing equipment.
"Buying expensive mining machines from other manufacturers led to a decrease in potential profitability for us and our investors (...) The technology did not pay off, because the price of Bitcoin fell." – из отчета GMO Internet.
GMO Internet, a Japanese company, lost $ 11.75 million in cryptocurrency. Thus, by the end of this year, the company plans to move to a new region, which will be able to provide cheaper power supply.
Editor: Pereyidenko Ihor