And one more thing for all those people thinking Mt.Gox must be insolvent. Mt.Gox was the first real Bitcoin exchange, trading BTC when it was less than $0.50. They were making thousands if not tens of thousands of dollars or more for a long time with the opportunity to buy BTC at those prices and Litecoins for less than $0.05.
Mt.Gox was obviously bullish on cryptocurrency. Who know how many thousands or likely hundreds of thousands of BTC/LTC they own themselves, which are now worth millions in USD.
Topic: Gox article. Validity?! (Read 1231 times)
From an earlier thread I did some math:
I calculated about $809,640 clear revenue per month for Mt.Gox. I'm sure they have decent expenses but I would think they're a fraction of that. If Mt.Gox was a product manufacturer then I could see a problem, because holding up capital delays payments to suppliers etc. That could impact business. Actually Mt.Gox only deals with moving money around. Tying up 5M of theirs would be a big blow to profits I believe, but would not make them insolvent, nor inhibit their ability to continue operating.
Also, they plan to introduce Litecoin trading soon which I think will significantly boost their trade volume and of course fees and revenue.
Well, some quick math... Mt.Gox does volume of around 22490 BTC (current) multiplied by $100 equals $2,249,000 in daily trades. Their trade fee is 0.6% which is $13,494 but multiplied by 2 since they charge on both buy/sell side equals 26,988 daily revenue multiplied by 30 days is about $809,640 clear revenue per month.
They don't need to advertise and their hosting costs I'm sure are a small fraction of that. Holding up $2.9M of theirs would be an unfortunate blow, but I don't believe detrimental.
They don't need to advertise and their hosting costs I'm sure are a small fraction of that. Holding up $2.9M of theirs would be an unfortunate blow, but I don't believe detrimental.
I calculated about $809,640 clear revenue per month for Mt.Gox. I'm sure they have decent expenses but I would think they're a fraction of that. If Mt.Gox was a product manufacturer then I could see a problem, because holding up capital delays payments to suppliers etc. That could impact business. Actually Mt.Gox only deals with moving money around. Tying up 5M of theirs would be a big blow to profits I believe, but would not make them insolvent, nor inhibit their ability to continue operating.
Also, they plan to introduce Litecoin trading soon which I think will significantly boost their trade volume and of course fees and revenue.
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