The cryptocurrency business is the cornerstone of profit, and the Japanese financial giant SBI turned around

According to foreign media today, SBI Securities' transaction revenue rose sharply by 19.2% in 2019, mainly due to the company's cryptocurrency investment department, turning losses into profits, from an annual loss of 7.1 million US dollars to an annual profit of 30 million US dollars.

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Japanese financial services giant SBI Holdings released a new financial report on October 30th. The report analyzes the performance for the six-month period ending September 30, 2019, and witnessed a significant increase in SBI's cryptocurrency venture capital sector in 2019, given the overall decline in SBI revenue.

SBI VC Trade profits increase by more than $30 million annually

According to the report, SBI VC Trade's pre-tax profit increased significantly in the first half of FY 2019. The figure has changed from a loss of 765 million yen ($7.1 million) in the first half of FY18 to a profit of 3.2 billion yen ($30 million) in the first half of FY19.

SBI Holdings noted that SBI VC Trade, a SBI subsidiary that operates the crypto-equity exchange, became a subsidiary of SBI Securities in July 2019.

SBI's cryptocurrency mining business SBI Crypto surges $10 million

According to the report, in addition to the significant increase in cryptocurrency-driven profit growth, SBI's cryptocurrency mining SBI Crypto profits increased significantly. As a result, the pre-tax profit of the business increased by nearly $10 million from the loss of 783 million yen ($7.2 million) in the first half of fiscal year 2018 to 293 million yen ($2.7 million) in the first half of fiscal year 2019.

SBI added that the scale of mining of cryptocurrency assets will further increase due to the start of operation of the new mining machine this year and the internal mining operation in 2020.

Earlier this year, SBI established a dedicated department to manufacture cryptocurrency mining chips.

Further cooperation with Ripple

Similar to previous financial reports, SBI once again outlined the importance of Ripple technology in its remittance department SBI Remit and Ripple's xCurrent-based remittance development. SBI pointed out that once these connections are activated, SBI Ripple Asia, a subsidiary connected to Ripple, is expected to account for nearly 50% of the entire Ripple network.

According to earlier reports, on October 1, SBI Securities and five brokerage companies, including Rakuten Securities, jointly established the Japan Securities Token Distribution Association.