SINGAPORE, Aug. 14, 2025 (GLOBE NEWSWIRE) — Intchains Group Limited (Nasdaq: ICG) (“we,” or the “Company”), a company engaged in the provision of altcoin mining products, strategic acquisition and holding of Ethereum-based cryptocurrencies, and active development of innovative Web3 applications, today announced its unaudited financial results for the second quarter (“Q2 2025”) and six months (“H1 2025”) ended June 30, 2025.
Mr. Qiang Ding, Chairman of the Board of Directors and Chief Executive Officer, commented, “Revenues for the first half of 2025 increased by 19.2% compared to the same period in 2024, driven by strong sales in the first quarter. As anticipated, our second quarter revenue reflected a lower volume of mining machine sales. It is important to understand that quarterly fluctuations are a normal dynamic in the hardware industry. Therefore, the softer demand and resulting impairment charges experienced during the quarter should be viewed within the broader context of the cyclical volatility inherent in the mining hardware market.
Despite these short-term dynamics, we remain confident in the long-term growth trajectory of our core business. We remain steadfast in our commitment to identifying, evaluating, and swiftly executing on opportunities in the development of altcoin mining machines. This strategic focus allows us to leverage our robust R&D capabilities to anticipate market trends and capitalize on emerging demand.
Furthermore, we have adopted a long-term dollar-cost averaging (DCA) strategy to gradually build strategic exposure to digital assets, with ETH being the cornerstone of this initiative due to its critical role in the blockchain ecosystem, particularly in decentralized finance (DeFi), staking, and smart contract infrastructure. This approach reflects the Company’s forward-looking perspective on digital assets as a component of modern treasury management and its commitment to enhancing yield performance while preserving capital flexibility.”
Going Forward Strategy
Mr. Ding continued, “2025 has been a transitional year for Intchains. While we expect revenues for the second half of the year to be impacted by softer sales driven by altcoin price volatility, we have accelerated R&D investments to strengthen our leadership in the altcoin mining machine market and advance multiple new altcoin projects toward commercialization. At the same time, the expansion of our ETH reserves and launch of yield-generating initiatives with FalconX is expected to improve overall profitability.
These strategic moves are designed to translate into tangible growth in 2026. We expect new product launches to capture market share in the next altcoin cycle, enhanced ETH yields to support higher margins, and broader participation in emerging blockchain ecosystems to diversify our revenue base. The investments we are making now in innovation, technology, and key growth areas, position us strongly for a robust recovery and accelerated growth in 2026. We remain confident that these initiatives will unlock long-term value and reinforce our leadership in the evolving blockchain ecosystem.”
ETH TREASURY STRATEGY DESIGNED TO BOOST OVERALL YIELD PERFORMANCE
The Company’s ETH treasury strategy is centered on a disciplined dollar-cost averaging (DCA) approach, allocating capital at regular intervals to accumulate ETH over time. This method mitigates the impact of short-term volatility by removing the need to time the market, allowing the Company to steadily build a digital asset reserve poised for potential long-term appreciation.
As a result of this strategy, the Company’s ETH holdings increased to 8,816 ETH as of June 30, 2025, from 7,023 ETH as of March 31, 2025, representing a 25.5% increase quarter-over-quarter. This growth reinforces the Company’s position as one of the top ETH treasury holders among public companies globally.
Over time, the Company also intends to deploy a portion of its ETH holdings into yield-generating activities, including staking and liquidity provisioning, thereby enabling idle assets to generate incremental returns.
In line with its growing focus on digital asset treasury management, the Company has recently onboarded a dedicated ETH accumulation team and entered into a partnership with FalconX to optimize its ETH acquisition and enhance ETH yields. These initiatives are designed to generate interest income from the Company’s holdings, contributing to both revenue and overall profitability.
The Company remains committed to responsible digital asset management and will continue to explore strategic opportunities that align with its long-term vision and create shareholder value.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss these financial results at 8:00 PM U.S. Eastern Time on Thursday, August 14, 2025 (corresponding to 8:00 AM Beijing Time on Friday, August 15, 2025).
Participant Dial-in Numbers:
Webcast:
A simultaneous audio webcast including accompanying slides may be accessed via the following link: https://edge.media-server.com/mmc/p/49a45nvc/, or via the investor relations section of the Company’s website https://ir.intchains.com. For those unable to listen to the live webcast, the replay will be available on the Company’s website shortly after the conclusion of the call.
Q2 2025 FINANCIAL RESULTS
Revenue
Revenue was RMB43.2 million (US$6.0 million) for Q2 2025, representing a decrease of 64.9% from RMB123.0 million for the same period in 2024. The decrease was primarily due to cyclical fluctuations in the market and softer demand for our products in this period.
Cost of Revenue
Cost of revenue was RMB32.9 million (US$4.6 million) for Q2 2025, representing a decrease of 19.6% from RMB40.9 million for the same period of 2024. Cost of revenue for Q1 2025 was impacted by impairment charges recorded against excess inventory of certain altcoin mining machines. Softer market demand led to lower selling prices for our altcoin mining products, resulted in lower gross margins for Q2 2025 compared to the same period in 2024.
Operating Expenses
Total operating expenses were RMB26.4 million (US$3.7 million) for Q2 2025, representing an increase of 10.2% from RMB24.0 million for the same period of 2024. The increase was primarily due to higher research and development expenses.
Income/(Loss) from operations
Loss from operations was RMB16.2 million (US$2.3 million) for Q2 2025, compared to income from operations of RMB58.1 million for the same period of 2024. The change from income to loss from operations was primarily attributable to the decrease in revenue and gross profit.
Interest Income
Interest income decreased by 25.7% to RMB3.1 million (US$0.4 million) for Q2 2025 from RMB4.1 million for the same period of 2024, mainly due to cash used to acquire ETH-based cryptocurrencies.
Change in fair value of cryptocurrencies
Change in fair value of cryptocurrencies resulted in income of RMB42.8 million (US$6.0 million) for Q2 2025, compared to a loss of RMB0.3 million for the same period in 2024. The gain was primarily a result of increased holding of ETH-based cryptocurrency units by 1,793 units since March 31, 2025, as well as ETH price increased by around 34% during Q2 2025.
Other Income, Net
Other income, net was RMB0.2 million (US$0.02 million) for Q2 2025, compared to RMB0.1 million, for the same period of 2024.
Net Income
As a result of the foregoing, our net income decreased by 24% to RMB38.3 million (US$5.3 million) for Q2 2025 from RMB50.4 million for the same period of 2024.
Non-GAAP Adjusted Net Income
Non-GAAP adjusted net income was RMB40.4 million (US$5.6 million) for Q2 2025 as compared to RMB52.6 million for the same period of 2024.
Basic and Diluted Net Income Per Ordinary Share
Basic and diluted net income per ordinary share both were RMB0.32 (US$0.04) for Q2 2025 as compared to RMB0.42 for the same period of 2024.
Non-GAAP Basic and Diluted Net Income Per Ordinary Share
Non-GAAP adjusted basic and diluted net income per ordinary share was RMB0.33 (US$0.05) for Q2 2025 as compared to RMB0.44 for the same period of 2024. Each ADS represents two of the Company’s Class A ordinary shares.
H1 2025 FINANCIAL RESULTS
Revenue
Revenue was RMB175.6 million (US$24.5 million) for H1 2025, representing an increase of 19.2% from RMB147.3 million for the same period in 2024. The increase was primarily attributable to higher sales of our altcoin mining products, led by the introduction of our Aleo series machines. As a result, our sales volume of altcoin mining products measured by the number of embedded ASIC chips rose to 1,365,838 units in H1 2025, compared to 768,254 units for the same period last year.
Cost of Revenue
Cost of revenue was RMB90.0 million (US$12.6 million) for H1 2025, representing an increase of 60.1% from RMB56.2 million for the same period of 2024. Softer market demand in Q2 2025 for Aleo series machines, compared to the altcoin mining products we launched in the previous year, resulted in lower selling prices for Aleo series machines, and affected overall gross margin for H1 2025. Furthermore, the cost of revenue for H1 2025 was impacted by impairment charges recorded against excess inventory of certain altcoin mining machines.
Operating Expenses
Total operating expenses were RMB64.9 million (US$9.1 million) for H1 2025, representing a decrease of 4.0% from RMB67.6 million for the same period of 2024. The decrease was primarily due to decreased research and development expenses, partially offset by increased general and administrative expenses and sales and marketing expenses.
Income from operations
Income from operations was RMB20.8 million (US$2.9 million) for H1 2025, a decrease of 11.7% from income from operations of RMB23.5 million for the same period of 2024, primarily due to decreased gross profit during the period.
Interest Income
Interest income decreased by 24.8% to RMB6.2 million (US$0.9 million) for H1 2025 from RMB8.3 million for the same period of 2024, mainly due to cash used to acquire ETH-based cryptocurrencies.
Change in fair value of cryptocurrencies
The change in fair value of cryptocurrencies was a loss of RMB28.0 million (US$3.9 million) for H1 2025, compared to a gain of RMB5.2 million for the same period in 2024. The loss was primarily the result of an approximately 28% decrease in the price of ETH during the period, in conjunction with an increase in our holdings of ETH-based cryptocurrencies by 3,114 units since the end of 2024.
Other Income, Net
Other income, net, was RMB0.4 million (US$0.05 million) for H1 2025, compared to RMB0.3 million, for the same period of 2024.
Net Income
As a result, our net income was RMB4.3 million (US$0.6 million) for H1 2025, compared to RMB35.6 million for the same period of 2024.
Non-GAAP Adjusted Net Income
Non-GAAP adjusted net income was RMB8.4 million (US$1.2 million) for H1 2025 from RMB39.3 million for the same period of 2024.
Basic and Diluted Net Income Per Ordinary Share
Basic and diluted net income per ordinary share were both RMB0.04 (US$0.006) for H1 2025 as compared to RMB0.3 for the same period of 2024.
Non-GAAP Basic and Diluted Net Income Per Ordinary Share
Non-GAAP adjusted basic and diluted net income per ordinary share was RMB0.07 (US$0.01) for H1 2025 as compared to RMB0.33 for the same period of 2024. Each ADS represents two of the Company’s Class A ordinary shares.
About Intchains Group Limited
Intchains Group Limited engages in the provision of altcoin mining products, strategic acquisition and holding of Ethereum-based cryptocurrencies, and active development of innovative Web3 applications. For more information, please visit the Company’s website at: https://intchains.com/.
Exchange Rate Information
The unaudited United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00=RMB7.1636 on the last trading day of Q2 2025 (June 30, 2025). No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about: (i) our goals and strategies; (ii) our future business development, formed condition and results of operations; (iii) expected changes in our revenue, costs or expenditures; (iv) growth of and competition trends in our industry; (v) our expectations regarding demand for, and market acceptance of, our products; (vi) general economic and business conditions in the markets in which we operate; (vii) relevant government policies and regulations relating to our business and industry; (viii) fluctuations in the market price of ETH-based cryptocurrencies; gains or losses from the sale of ETH-based cryptocurrencies; changes in accounting treatment for the Company’s ETH-based cryptocurrencies holdings; a decrease in liquidity in the markets in which ETH-based cryptocurrencies are traded; security breaches, cyberattacks, unauthorized access, loss of private keys, fraud, or other events leading to the loss of the Company’s ETH-based cryptocurrencies; impacts to the price and rate of adoption of ETH-based cryptocurrencies associated with financial difficulties and bankruptcies of various participants in the industry; and (IX) assumptions underlying or related to any of the foregoing. Investors can identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
Use of Non-GAAP Financial Measures
In evaluating Company’s business, the Company uses non-GAAP measures, such as adjusted income (loss) from operations and adjusted net income (loss), as supplemental measures to review and assess its operating performance. The Company defines adjusted income (loss) from operations as income (loss) from operations excluding share-based compensation expenses, and adjusted net income (loss) as net income (loss) excluding share-based compensation expenses. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted net income is that it does not reflect all of the items of income and expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in Company’s business and are not reflected in the presentation of adjusted net income. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For investor and media inquiries, please contact:
Alice Zhang, Associate
212-836-9610 / This email address is being protected from spambots. You need JavaScript enabled to view it.
* The ‘Others’ category encompasses various cryptocurrencies that are not reported individually due to their lower significance. This category is labeled as ‘Multiple’ to indicate the presence of diverse prices associated with different type of cryptocurrency. Due to their immaterial nature, detailed price listings are not provided.
(a) The “Lowest Market Price Per Unit of Cryptocurrency During Quarter” represents the lowest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter, without regard to when we obtained any of the cryptocurrency.
(b) The “Market Value of Cryptocurrency Held at End of Quarter Using Lowest Market Price” represents a mathematical calculation consisting of the lowest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.
(c) The “Highest Market Price Per Unit of Cryptocurrency During Quarter” represents the highest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter, without regard to when we obtained any of the cryptocurrency.
(d) The “Market Value of Cryptocurrency Held at End of Quarter Using Highest Market Price” represents a mathematical calculation consisting of the highest market price for a single unit of cryptocurrency reported on the Coinbase exchange during the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.
(e) The “Market Price Per Unit of Cryptocurrency at End of Quarter” represents the market price of a single unit of cryptocurrency on the Coinbase exchange at midnight UTC+8 time on the last day of the respective quarter, which aligns with the our revenue recognition cut-off.
(f) The “Market Value of Cryptocurrency Held at End of Quarter Using Ending Market Price” represents a mathematical calculation consisting of the market price of a single unit of cryptocurrency on the Coinbase exchange at midnight UTC+8 time on the last day of the respective quarter multiplied by the number of cryptocurrency we held at the end of the applicable period.
