How much has mtgox made and how much does their exchange cost?

[Coldfats]

Sorry if this has been posted about somewhere else before. But I couldn't seem to find it. I have two main questions

1) How much has mtgox made up to date?
2) How much did it cost to set up mtgox?

I'm just trying to figure out if gox has been making money, and if so, how much?

[polrpaul]

Really? You must be joking! 

Of course they make money.. how much is anyone's guess..

[ToaDy]

A business that is not making money would be a strange one no? :p

[farlack]

No clue so I'll toss out numbers!

Average 30,000 btc a day, some more some less but lets say that :O
Running how long 2 years? lets say 700 days * 30000 - 21 million bitcoin transacted
0.5% fee

105000 bitcoin profit

[QuantPlus]

No clue so I'll toss out numbers!

Average 30,000 btc a day, some more some less but lets say that :O
Running how long 2 years? lets say 700 days * 30000 - 21 million bitcoin transacted
0.5% fee

105000 bitcoin profit

It's a good thing they have no expenses.

[adamstgBit]

No clue so I'll toss out numbers!

Average 30,000 btc a day, some more some less but lets say that :O
Running how long 2 years? lets say 700 days * 30000 - 21 million bitcoin transacted
0.5% fee

105000 bitcoin profit

there's a fees on both sides of each trade.

last year they made a public report on their earning and were showing a loss.

[tclo]

No clue so I'll toss out numbers!

Average 30,000 btc a day, some more some less but lets say that :O
Running how long 2 years? lets say 700 days * 30000 - 21 million bitcoin transacted
0.5% fee

105000 bitcoin profit

there's a fees on both sides of each trade.

last year they made a public report on their earning and were showing a loss.

You can easily show a loss if you pay your executives tens of millions of dollars a year...not saying they do, but just that there is no way their business isn't profitable with all the trading volume they get now.

[deepceleron]

I just happen to have some data. As of now, the total of all USD trades since the start of mtgox:

5,872,449 trades
50,541,892.44 BTC
$1,416,389,568.96 USD

MtGox charges a 0.3% to 0.6% commission on both sides of trades depending on the trader's monthly volume. So at 0.3% minimum, revenue would be:

151,625.68 BTC and
$4,249,168.70 USD

up to near double that. The real money is in the BTC, valued at over $15m now if they didn't liquidate them.

They also suffered a Wells Fargo and Dwolla account being seized - when you do the numbers, they might be able to afford it. There was a period of reduced fees after the hack/outage also. This is just for the USD currency, other currencies are traded separately.

They have a large staff to pay too, $30k/yr * 10 employees?

BTW repeat of this thread: https://bitcointalk.org/index.php?topic=117478.0

[Coldfats]

Well according to http://bitcoincharts.com/markets/currency/USD.html

Their total volume transacted is about 90 mil usd.


On the top end,
90M * 0.6% = 540,000

Since they take a fee on both sides,

540,000 * 2 = 1.08M

Where did you guys get your numbers?


And when I say making money, I mean covered their fixed and variable cost!

[deepceleron]

Well according to http://bitcoincharts.com/markets/currency/USD.html

Their total volume transacted is about 90 mil usd.

That's the 30 day volume. I am maintaining sierrachartfeed so I have the full set of all historical trades, I wrote a python script to extract and sum all individual trades.

Tradehill took USD from both sides of the trade, but mtgox takes one half of the trade fee in BTC.

[QuantPlus]

I just happen to have some data. As of now, the total of all USD trades since the start of mtgox:

5,872,449 trades
50,541,892.44 BTC
$1,416,389,568.96 USD

MtGox charges a 0.3% to 0.6% commission on both sides of trades depending on the trader's monthly volume. So at 0.3% minimum, revenue would be:

151,625.68 BTC and
$4,249,168.70 USD

up to near double that. The real money is in the BTC, valued at over $15m now if they didn't liquidate them.

They also suffered a Wells Fargo and Dwolla account being seized - when you do the numbers, they might be able to afford it. There was a period of reduced fees after the hack/outage also. This is just for the USD currency, other currencies are traded separately.

They have a large staff to pay too, $30k/yr * 10 employees?

BTW repeat of this thread: https://bitcointalk.org/index.php?topic=117478.0

Pretty good analysis.

Their Top 4 employees...
The CEO, CFO, and top 2 engineers...
Have a market value > $500,000...
And NONE of these people are taking big pay cuts.

So you start with that...
Add office, power, bandwidth, hardware, software, security, accounting, legal...
Then you add massive compliance administration beaurocracy...

My guess...
Gox breaks even on the fees...
But makes a millions on private transactions and market manipulation.