Intchains halts fresh Ethereum buys after revenue collapses 94%

Intchains Group is halting plans for significant new Ethereum purchases after its first-half revenue collapsed 94%, CryptoSlate reported. The Nasdaq-listed altcoin mining-machine maker is redirecting capital toward a next-generation mining ASIC and early-stage AI initiatives instead.

On Aug. 20, Intchains said H1 revenue fell to RMB11.1 million, about $1.6 million, from RMB175.6 million a year earlier. Nearly all of that came from a RMB10.9 million sale of non-core chip inventory to a related party, underscoring how weak the core hardware business has become. Intchains said it no longer anticipates "material additional accumulation" of cryptocurrency as it prioritizes capital for developing and commercializing its next-generation ASIC and exploring AI opportunities, while keeping its existing treasury in place and continuing to generate staking yield.

The pullback doesn't look like a liquidity scramble. Intchains ended June with RMB461.1 million, about $68 million, in cash and short-term investments, which it says covers the ASIC program internally and supports planned activities for at least 12 months. That's a real shift from earlier this year: in February Intchains said it was running a dollar-cost-averaging strategy to accumulate Ethereum, and in April CEO Qiang Ding said the company would keep making prudent and opportunistic purchases.

• H1 revenue: RMB11.1 million (about $1.6 million), down from RMB175.6 million
• ETH holdings as of June 30: about 9,176 units worth RMB98.1 million
• ETH staked as of Aug. 20: 4,556, split between Goldshell and FalconX
• Cash and short-term investments: RMB461.1 million (about $68 million)
• H1 net loss: RMB148.9 million (about $21.9 million), versus a RMB4.3 million profit a year earlier

The financial pressure runs on two separate fronts at once. Cost of revenue reached RMB22.1 million, twice the company's revenue, as Intchains wrote down excess mining-machine inventory amid weaker demand and falling resale prices. A decline in ETH added an RMB89.5 million, about $13.2 million, fair-value loss on top of that, pushing the company to its first-half net loss. China's February restrictions added another layer of pressure on top of that: Intchains stopped accepting new mainland orders after regulators barred mining-machine manufacturers from providing sales and related services in the country.

The recovery bet centers on a next-generation mining ASIC that completed tape-out in July. It still needs sample production and validation, with commercial launch targeted for the fourth quarter. Ding said the chip should contribute modestly to revenue in the second half of 2026 before becoming a more meaningful driver in 2027 as commercialization accelerates, strengthening Intchains' position in purpose-built mining hardware while improving operating efficiency for customers.

It is a core part of our strategy to build a more resilient, diversified revenue base.

Intchains is also evaluating AI initiatives, including potential acquisitions, as another route to longer-term growth and diversification, though Ding described the effort as early-stage, with more specific plans expected next year. The custom-silicon bet echoes a pattern showing up elsewhere in tech, similar to how Waymo built its own chip for robotaxis to cut reliance on outside suppliers and control more of its own cost structure.

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