Intchains Group is pulling again from recent Ethereum purchases after its first-half income collapsed by 94% and is now centered on redirecting capital towards a brand new mining chip and early-stage AI initiatives.
On Aug. 20, the Nasdaq-listed altcoin mining-machine maker mentioned income fell to RMB11.1 million (round $1.6 million) from RMB175.6 million a 12 months earlier. Almost all of that got here from a RMB10.9 million sale of non-core chip stock to a associated celebration, underscoring the weak point in its core {hardware} enterprise.
Towards that backdrop, Intchains mentioned it now not anticipates “materials further accumulation” of cryptocurrency because it prioritizes capital for growing and commercializing its next-generation ASIC and exploring AI alternatives. The corporate plans to take care of its current 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 help deliberate actions for not less than 12 months.
Nonetheless, the transfer marks a shift from earlier this 12 months. In February, Intchains mentioned it was pursuing a dollar-cost-averaging technique to steadily accumulate Ethereum, and in April Chief Government Officer Qiang Ding mentioned the corporate would proceed making prudent and opportunistic purchases.
Intchains held about 9,176 items 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 by way of its Goldshell platform awaiting validator activation and 1,000 by way of FalconX.
The retreat from further purchases comes as weak point in each its working enterprise and crypto holdings weighs on outcomes. Price 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 12 months earlier.
China’s February restrictions on home mining-machine gross sales added to the stress. 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 guess
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 business launch focused for the fourth quarter.
Ding mentioned the corporate expects the brand new ASIC to contribute modestly to income within the second half of 2026 earlier than changing into a extra significant driver in 2027 as commercialization accelerates. He said:
“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 patrons.
The corporate can also be evaluating AI initiatives, together with potential acquisitions, as one other avenue for longer-term development and diversification. Ding mentioned the trouble stays within the early phases, with extra particular plans anticipated subsequent 12 months.
