Japan’s GMO Internet Sees 45% Cryptocurrency Profit Dip for Q1 2019

Japanese internet giant GMO Internet Group saw its cryptocurrency profits drop in Q1 2019 amid market weakness, Cointelegraph Japan reported, quoting a new statement on May 10.

GMO, which in December 2018 withdrew from bitcoin miner production due to the fall in bitcoin (BTC) prices, saw revenues of 12.9 billion yen ($117.4 million) in Q1, compared to 23.3 billion ($212.1 million) in Q4 2018.

Driving the decrease was continued suboptimal performance of bitcoin mining, along with reduced volumes for GMO’s cryptocurrency exchange as traders held off buying and selling.

The company has remained committed to the cryptocurrency space throughout its recent hardships, which accelerated in November last year after bitcoin fell to 18-month lows of $3,130.

In February, in line with various other entities in the industry, GMO said it would be launching a stablecoin, in its case pegged to the yen.

As Cointelegraph Japan notes, executives will be looking for conditions on the market to now improve, along with profitability of GMO’s various offerings.

Beginning April 1, bitcoin saw a renaissance which has continued, the largest cryptocurrency this week passing $6,000 for the first time since its November plunge.

GMO also noted that reduced production costs contributed to the upside of its Q1 performance.

This week also saw annual results for Canadian mining giant Hut 8, executives similarly buoyant on the future despite figures revealing 2018 losses of nearly $140 million.