GMO Suffers $5.6M Q3 Loss on Crypto Mining Operations

Japanese tech conglomerate GMO has declared a loss amounting to 640 million yen or roughly $5.6 million for its crypto mining operations during the third quarter of 2018.

According to the IT giant’s latest financial report released on Monday, the figure is significantly larger than its second-quarter loss of 360 million yen or about $3.2 million. GMO blames the loss to a “worsening” external environment and growing depreciation costs.

In general, the company is still able to register a tiny growth in third-quarter revenue from crypto mining at 1.23 billion yen or about $10.78 million, compared to second quarter’s 1.17 billion yen or approximately $10.26 million.

Based on the newest monthly crypto mining report, the firm has successfully mined a total of 1,590 Bitcoins and 25 Bitcoin Cash in the third quarter of this year.

The Tokyo-based firm has also presented data regarding its mining capacity or hashrate, which also enjoyed an increase of 674 petahashes per second (PH/s) last October compared to September’s 479 PH/s. GMO states that it wants to achieve 800 PH/s this 2018.

On the other hand, the firm’s exchange operations have shown stronger performance for the third quarter, bagging revenues of 740 million yen or roughly $6.5 million. This figure is up 34.4 percent compared to Q2’s 1.36 billion yen or around $11.92 million.

In addition, the company’s crypto unit has also registered positive performance for the third quarter even though profit dropped from that of the second quarter. Net sales are at 2.6 billion yen or around $22.80 million while overall profits dropped to 104 million yen or roughly $912,840.

In a separate report, GMO indicates that its crypto mining loss has been compensated by the profit generated from the company’s crypto exchange operations.

GMO also states that shipments of its new 7nm B3 mining rig (initially planned to begin in October) are delayed due to a shortage in several electronic components.