Intchains Group Limited reported unaudited results for the third quarter of 2025, showing revenue of RMB 9.1 million (US$ 1.3 million) – a decline of 84.8% from the same period in 2024 – and a net income of RMB 74.4 million (US$ 10.5 million), up 2,258% year‑over‑year. The company’s operating loss of RMB 41.8 million (US$ 5.9 million) was largely offset by a gain of RMB 107.2 million (US$ 15.1 million) from fair‑value changes in its cryptocurrency holdings, which more than compensated for the decline in mining‑machine sales.
Revenue fell sharply because sales of mining machines dropped significantly, reflecting a broader slowdown in demand for hardware amid lower cryptocurrency mining profitability and increased competition. The company’s core mining‑machine business, which had been a key revenue driver in prior quarters, experienced a steep contraction that was not mitigated by growth in other segments.
The extraordinary net‑income increase was driven almost entirely by the crypto‑asset gains. While the operating loss highlighted weakness in the company’s traditional product line, the fair‑value appreciation of its digital‑asset portfolio provided a one‑time boost that lifted earnings to a level not seen in recent years. This pattern underscores Intchains’ growing reliance on cryptocurrency market movements to support profitability.
Operating expenses rose 33.1% to RMB 32.7 million (US$ 4.6 million) as the company increased research and development spending to support new product development and technology upgrades. At the same time, cost of revenue fell 6.6% to RMB 18.2 million (US$ 2.6 million), a result of a mix shift toward higher‑margin segments and lower‑cost production activities. The combination of higher R&D costs and lower revenue from mining machines contributed to a tighter operating margin.
In addition to the earnings announcement, Intchains disclosed the acquisition of a proof‑of‑stake (PoS) technology platform for $1.3 million and the staking of 1,000 ETH on FalconX. These moves signal a strategic pivot toward building a robust ETH treasury and generating yield from digital‑asset holdings, a shift that may help offset the decline in hardware sales in the long term. Management did not provide forward‑looking guidance or analyst estimates in the release, so investors will need to monitor future statements for updated outlooks.
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