Key Takeaways:
Intchains Group reported H1 revenue of RMB11.1 million, down 93.7% from a year earlier, as the Nasdaq-listed crypto miner pivots toward AI.
"We entered this cycle with a deliberate choice; keep funding our next-generation mining ASIC development through a weaker demand environment, so that we would be ready with new products when the market turns," Qiang Ding, chairman and CEO, said.
The company swung to a net loss of RMB148.9 million from net income of RMB4.3 million in H1 2025, with adjusted EPS of $(0.17) missing the consensus estimate of $(0.03) by 750 percent. Revenue missed the $4.073 million consensus by 59.7 percent. Nearly all of the period's sales — RMB10.9 million — came from selling non-core chip inventories to a related party, leaving third-party product revenue at just RMB0.3 million.
Intchains completed the tape-out of its next-generation mining ASIC in July and targets commercial launch in Q4 2026, expecting modest revenue contribution in H2 2026 that scales through fiscal 2027. The company is also evaluating AI-adjacent acquisitions to diversify beyond cryptocurrency cycles, and holds RMB461.1 million in cash and short-term investments to fund the chip program internally.
Cost of revenue fell 75.5 percent to RMB22.1 million, but impairment charges against excess inventory of existing altcoin mining machines pushed gross margins negative. Total operating expenses dropped 35.2 percent to RMB42.0 million, with research and development spending down 46.3 percent to RMB22.4 million. Headcount optimization completed by June 30 cut annual labor costs by an estimated RMB23.1 million.
The results reflect cyclical softness in altcoin demand compounded by the PRC's mining-machine sales restrictions announced in February 2026. A loss of RMB89.5 million from changes in the fair value of cryptocurrencies, driven by declining Ethereum prices, weighed on the bottom line. The company held about 9,176 ETH valued at RMB98.1 million as of June 30, with 4,556 ETH staked or pending validator activation across its Goldshell and FalconX platforms.
The board approved a share repurchase program of up to $15 million over two years, funded from existing cash. The buyback, running from Aug. 21, 2026 through Aug. 20, 2028, shows management confidence in the strategic direction.
The pivot from Ethereum accumulation to AI and ASIC development marks a strategic shift for a publicly traded crypto firm, reducing its role as an institutional ETH buyer while betting on hardware. Investors will watch the Q4 2026 ASIC launch and any AI acquisition targets as the next catalysts.
This article is for informational purposes only and does not constitute investment advice.
