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The9 posts $13.4M operating loss as 9BIT gains unlock incentive payout
The9’s Nasdaq-listed results showed $58.3M from 9BIT fair value and a cryptocurrency reward, lifting net income to $32.4M for the quarter ended June 30 despite minimal operating revenue.
The9 reported a $13.4 million loss from operations in the second quarter, even as accounting gains on its own 9BIT token holdings drove overall profitability, according to CryptoSlate. The company posted net income of $32.4 million for the quarter ended June 30, up from $22.6 million in the first quarter, while revenue totaled $712,000 and it recorded zero cryptocurrency mining revenue.
CryptoSlate said the gap between operating results and net income was explained by a $47.2 million fair-value gain on 9BIT tokens and an additional $11.1 million cryptocurrency reward. Together, those two items totaled $58.3 million for the quarter, exceeding net income, and both were recorded below operating income, separately from operating revenue and without generating cash for the businesses.
CryptoSlate added that the token-linked net income satisfied a condition in a long-term management incentive plan. Under the plan, senior management may become eligible for equity awards representing up to 12% of The9’s outstanding shares if net income in each remaining quarter of 2026 exceeds the company’s first-quarter result, with issuance and vesting subject to multi-year vesting and a three-year lock-up.
The company also disclosed that it carried 1.9 billion 9BIT tokens at $96.6 million as of June 30. In its Aug. 24 release, The9 valued its total crypto holdings at about $120 million based on quoted prices, including 347 Bitcoin and 1.9 billion 9BIT tokens, and warned the figure might not reflect realizable value.
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