Profit Soars Thanks to Crypto Investments
SBI Securities took a wild ride in 2019. Their trading revenue shot up a remarkable 19.2%, and while some may attribute this growth to sheer luck, the catalyst was undeniably their shift into the crypto realm. What’s that saying? “When life gives you lemons, make lemonade?” SBI took what was once a $7.1 million loss and flipped it into a sweet $30 million profit, thanks to their crypto investment wing.
The Financial Report: A Closer Look
On October 30, Japanese financial giant SBI Holdings revealed their new financial performance report, focusing on the first six months ending September 30, 2019. Amid a general revenue decline, the report highlighted a booming crypto venture capital arm. SBI VC Trade, which engages in crypto trading, reported a remarkable turnaround.
From Losses to Gains
How did they pull off this magic trick? Well, according to the financial report, SBI VC Trade’s profit before income tax expenses surged from a staggering 765 million yen ($7.1 million) in losses for the first half of FY2018 to a whopping 3.2 billion yen ($30 million) in profits for the same period in FY2019.
The Mining Bonanza
SBI’s success didn’t stop there; they also hit the jackpot with their cryptocurrency mining business, SBI Crypto. The mining operation turned losses into a profit of nearly $10 million. Profits soared from 783 million yen ($7.2 million) in losses in H1 FY2018 to 293 million yen ($2.7 million) in profits in H1 FY2019. Talk about an impressive glow-up!
Looking Ahead
Expect more from SBI’s mining operations! The firm anticipates expanding its scale of crypto asset mining, fueled by new miner operations set for 2020.
Ripple: Riding the Wave
SBI isn’t just riding the crypto wave with securities; they’re also making strong connections with Ripple’s technology in their remittance division. Interestingly, their Ripple-connected subsidiary, SBI Ripple Asia, is gearing up to cover almost half of the whole Ripple network once all connections are up and running. Ripple’s technology might just be the next big thing in SBI’s digital wallet.
What’s Next for SBI?
With the establishment of the Japan Security Token Offering Association by SBI and several other brokerage firms, it’s clear that they are keen on staying at the forefront of financial innovation. Can we call this a power move? Absolutely!
