Kushim reported its consolidated financial results for the third quarter ending October 2024, with sales rising 61.9% year-on-year to ¥1.168 billion. However, the company posted a significant operating loss of ¥1.74 billion, a sharp increase from a ¥465 million loss in the same period last year. Net loss also widened substantially to ¥1.912 billion, from ¥147 million last year.
The rise in sales was largely driven by the consolidation of Zaif, a cryptocurrency exchange operator, into the group’s blockchain services segment. However, mounting losses in this sector and a ¥1.132 billion cryptocurrency valuation write-down in the incubation business significantly worsened Kushim’s overall financial performance.
The blockchain services business saw a 331.6% jump in sales to ¥541 million but also suffered a deeper operating loss of ¥587 million. The system engineering business saw declining sales and turned from a profit to a loss, while the incubation segment recorded a significant loss of ¥1.536 billion.
Zaif, under Kushim’s new management, launched a staking service in Q3 that leverages Ethereum’s Proof of Stake model, contributing to stable revenues. However, the company faces ongoing challenges, particularly in optimizing costs and listing new cryptocurrencies to bolster profitability. Despite efforts to reduce infrastructure costs, Kushim’s financial outlook remains strained.
