GMO’s Breakdown of Mining Revenue

In a recent disclosure, GMO Internet Group has revealed a disheartening plunge in its mining revenue, sending shockwaves through the cryptocurrency community. On January 8, the company documented its challenges and triumphs in the volatile world of crypto mining.

Looming Losses and the Hardware Business Shutdown

The firm’s financial statements painted a dire picture with losses for Q4 2018 reaching a staggering 35.5 billion yen (around $320 million). This prompted GMO to make the tough decision to shutter its hardware manufacturing business. The bright side? They intend to keep their in-house mining operations alive and kicking.

Mining Rewards: A Silver Lining?

Even with a significant drop in overall revenue, GMO reported a curious trend: a steady increase in Bitcoin (BTC) mining rewards. Their monthly rewards skyrocketed from a mere 21 BTC in December 2017 to soaring highs of 960 BTC by December 2018. It seems the crypto universe has its own sense of irony.

Hash Rate Trends: The Numbers Game

GMO disclosed some fascinating data about its hash rate, showing a consistent upward trajectory. Starting at 22 PH/s in December 2017, they ramped up to an impressive 670 PH/s by December 2018. Yet, it’s essential to remember that a higher hash rate doesn’t necessarily mean more tacos for the miners—err, I mean, more rewards. As GMO wisely noted, profitability fluctuates, and hash rate allocation resembles more of a complex algorithm than a straightforward buffet.

The Future of Mining at GMO

Moving forward, GMO has thrown in the towel on monthly reports for its mining division in 2019, opting instead for quarterly earnings announcements. Interestingly, this comes after a promising Q3 2018 where their combined crypto projects netted a profit of 2.6 billion yen ($22.8 million). But let’s not forget the struggles faced by other mining players; as evidenced by Bitmain’s operational closures, it’s a bumpy road ahead for everyone in the mining game.