Intchains Group is pulling again from recent Ethereum purchases after its first-half income collapsed by 94% and is now targeted on redirecting capital towards a brand new mining chip and early-stage AI initiatives.
On Aug. 20, the Nasdaq-listed altcoin mining-machine maker stated income fell to RMB11.1 million (round $1.6 million) from RMB175.6 million a yr earlier. Almost all of that got here from a RMB10.9 million sale of non-core chip stock to a associated social gathering, underscoring the weak point in its core {hardware} enterprise.
In opposition to that backdrop, Intchains stated it not anticipates “materials extra accumulation” of cryptocurrency because it prioritizes capital for creating and commercializing its next-generation ASIC and exploring AI alternatives. The corporate plans to take care of its present treasury and proceed producing staking yield.
The pullback from crypto shopping for doesn’t seem pushed by a direct liquidity scarcity. Intchains ended June with RMB461.1 million (equal to $68 million) of money and short-term investments, which it says is sufficient to fund the ASIC program internally and assist deliberate actions for at the very least 12 months.
Nonetheless, the transfer marks a shift from earlier this yr. In February, Intchains stated it was pursuing a dollar-cost-averaging technique to steadily accumulate Ethereum, and in April Chief Govt Officer Qiang Ding stated the corporate would proceed making prudent and opportunistic purchases.
Intchains held about 9,176 models of ETH-based cryptocurrencies price RMB 98.1 million as of June 30. As of Aug. 20, 4,556 ETH had been allotted to staking, together with 3,556 deposited via its Goldshell platform awaiting validator activation and 1,000 via FalconX.
The retreat from extra purchases comes as weak point in each its working enterprise and crypto holdings weighs on outcomes. Value of income reached RMB22.1 million, twice the corporate’s income, as Intchains impaired extra mining-machine stock amid weaker demand and decrease promoting costs.
A decline in ETH additionally produced an RMB89.5 million ($13.2 million) fair-value loss, serving to push Intchains to an RMB148.9 million ($21.9 million) first-half web loss from a RMB4.3 million revenue a yr earlier.
China’s February restrictions on home mining-machine gross sales added to the strain. Intchains stopped accepting new mainland orders after regulators barred mining-machine producers from offering gross sales and associated providers within the nation.
ASIC and AI grow to be the restoration wager
Intchains is now placing extra weight behind a next-generation mining ASIC that accomplished tape-out in July. The chip nonetheless requires pattern manufacturing and validation, with industrial launch focused for the fourth quarter.
Ding stated the corporate expects the brand new ASIC to contribute modestly to income within the second half of 2026 earlier than turning into a extra significant driver in 2027 as commercialization accelerates. He acknowledged:
“It’s a core a part of our technique to construct a extra resilient, diversified income base.”
He added that Intchains expects the platform to strengthen its place in purpose-built mining {hardware} whereas enhancing working effectivity for purchasers.
The corporate can also be evaluating AI initiatives, together with potential acquisitions, as one other avenue for longer-term development and diversification. Ding stated the hassle stays within the early levels, with extra particular plans anticipated subsequent yr.
