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Intchains cuts further Ethereum buys to fund ASIC and early AI plans
The Nasdaq-listed miner said it expects no “material additional accumulation” of cryptocurrency, after first-half revenue plunged 94% to RMB11.1 million.
Intchains Group, a Nasdaq-listed altcoin mining-machine maker, is scaling back from additional Ethereum purchases as it redirects capital to a next-generation mining chip and early-stage AI initiatives, CryptoSlate reported. In a statement dated Aug. 20, the company said it no longer expects “material additional accumulation” of cryptocurrency as it prioritizes developing and commercializing a new ASIC and exploring AI opportunities.
The shift follows a steep deterioration in operating performance. Intchains reported first-half revenue fell to RMB11.1 million, from RMB175.6 million a year earlier, with nearly all of that revenue tied to a RMB10.9 million sale of non-core chip inventory to a related party, highlighting weakness in its core hardware business.
Intchains said the pullback is not driven by an immediate liquidity shortage. The company ended June with RMB461.1 million, or about $68 million, in cash and short-term investments, which it said is enough to fund the ASIC program internally and support planned activities for at least 12 months.
The financial results also reflect pressure from both inventory and crypto markets. Cost of revenue reached RMB22.1 million, twice revenue, as the company impaired excess mining-machine inventory, and a decline in ETH contributed an RMB89.5 million fair-value loss, helping drive a first-half net loss of RMB148.9 million, compared with a RMB4.3 million profit a year earlier. Intchains also pointed to China’s February restrictions on domestic mining-machine sales, after regulators barred mining-machine makers from providing sales and related services in the country.
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