Gumi Inc. Reports Major Turnaround as Crypto Investments Outshine Gaming Losses
Tokyo, Japan – September 15, 2025 – Japanese mobile game studio Gumi Inc. surprised investors with a strong first-quarter rebound driven by cryptocurrency gains, even as its core mobile gaming revenues plunged. The results underscore a growing strategic pivot from traditional gaming toward blockchain and digital asset investments.
Financial Highlights: Crypto Gains Drive Profit Surge
Gumi’s quarterly sales fell sharply by 52.5% year-on-year to $9.2 million (¥1.35 billion), reflecting steep declines in its mobile gaming business. However, the company’s operating income edged up to $491,000, while ordinary profit soared 371% to $8.3 million. Net income reached $8.4 million, marking a stark reversal from the $1.13 million loss posted a year earlier.
The turnaround was primarily fueled by the firm’s cryptocurrency portfolio. Over the past six months, Gumi invested approximately $6.7 million (¥1 billion) in Bitcoin and announced plans to purchase an additional $17 million worth of XRP. Thanks to mark-to-market valuation, these holdings generated $7.4 million in non-operating income, effectively offsetting weaknesses in core operations.
Gaming Business Faces Structural Decline
Gumi’s traditional mobile gaming division continues to struggle under intense competition and a saturated market. Segment revenue dropped 66.5% to $4.7 million, as the company shut down underperforming titles, transferred operational control of certain projects, and sold subsidiary Alim. This restructuring led to a segment operating loss of $630,000, compared to a profit in the prior year.
Executives signaled a strategic shift toward third-party IP-based games rather than developing original titles. Management withheld a full-year earnings forecast, citing ongoing market volatility and uncertainty in the global gaming landscape.
Blockchain Emerges as the New Growth Engine
Amid the gaming slowdown, Gumi’s blockchain and Web3 initiatives have become critical to sustaining profitability. The company launched “Phantom of Kill—Alternative Imitation”, the first title under its OSHI3 fan-engagement project, generating new revenue streams and enhancing brand presence in the decentralized entertainment space.
In addition to game-related blockchain activities, Gumi also recorded gains from crypto assets earned through decentralized operations. These results highlight management’s strategy to position blockchain as a stabilizing force against volatility in the traditional gaming market.
Strategic Outlook and Market Implications
Looking ahead, Gumi aims to expand its blockchain ventures while maintaining selective investments in cryptocurrencies. Industry analysts view this hybrid approach as a pragmatic adaptation to shifting digital trends. By leveraging both Web3 engagement models and crypto asset appreciation, Gumi seeks to cushion its earnings against cyclical downturns in gaming.
However, challenges remain. The firm must balance regulatory risks tied to digital asset holdings and execute a coherent long-term strategy that integrates blockchain into its entertainment ecosystem. Success will depend on Gumi’s ability to innovate within the fast-evolving metaverse and decentralized gaming landscape.
Conclusion: A Company in Transition
Gumi’s Q1 results reveal a company in strategic transition—shifting from a reliance on mobile games toward a diversified model anchored in blockchain technology and crypto investments. While gaming revenues contract, the profitability from digital assets provides breathing room and a potential pathway to future growth. If the firm can execute on its blockchain ambitions, it may redefine itself as a hybrid entertainment and Web3 enterprise in the years ahead.
