GMO internet group, a Japanese internet giant that develops Internet Infrastructure, Internet Finance, Online Advertising & Media, and Cryptocurrency businesses experienced a crypto profit dip in the first quarter of 2019; reports say this is as a result of market weakness.
Cointelegraph Japan reported on May 10 that the GMO stopped mining BTC in December 2018 due to bearish conditions the crypto market experienced that affected everyone.
In the first quarter of the year, the firm recorded a revenue of 12.9 billion yen (Approximately $117.4 million). Although, this figure is small when compared to its revenue of 23.3 billion ($212.1 million) in the fourth quarter of 2018.
The primary reason for this decrease in revenue was because of the dismal performance of Bitcoin in the preceding months and the reduced volume of trade on crypto exchanges as most traders refused to buy or sell their assets.
GMO, however reported that even though the firm is currently facing hard times, it is still committed to the crypto industry.
As a means to show its commitment to the cryptocurrency industry, GMO will be launching its own Stablecoin in February which will be pegged against the Japanese Yen like other organisations did in the industry.
Cointelegraph also reported that because of this new development, executives of GMO will be hoping for improvements in market conditions.
The hardship faced by GMO got to a peak in November 2018 when the price of Bitcoin dropped to an all-time low of $3,130. However, since the beginning of April 2019, Bitcoin has experienced a reawakening of some sorts and has continued to see an increase in price. As at the time of this writing, the price of BTC is hovering at $6,396.68.
According to a statement from the firm, reduction in production costs also added to the increase in profit it was able to achieve in the first quarter of 2019. The firm is looking at the bright side with hopes that it is the beginning of great things for the company in the coming months.