Intchains Group Limited Q1 2025 Earnings: Record Revenue, New Mining Products & Crypto Strategy

Q1 2025 earnings conference call for Intchains Group Limited (ING-18), held on May 23, 2025.

Q1 2025 Performance Highlights

Intchains Group Limited (ING-18) reported strong financial results for the first quarter of 2025, exceeding their own revenue guidance despite a challenging cryptocurrency market with an 18% decline in crypto market capitalization.

• Revenue: Reached $18.2 million, a 78% quarter-over-quarter increase and the highest quarterly revenue since 2023. This significantly surpassed the guided range of $15 million to $16 million.
• Gross Margin: Grew by 286.9% to 56.9%, up from 0.2% in the last quarter, reflecting a focus on product optimization and operational efficiency.
• Operating Income: Turned positive at $5.1 million, a strong recovery from a loss in Q4 2024. Intchains is noted as one of the few crypto mining companies to report positive operating income in early 2025.
• Net Income: Was negative $4.7 million, primarily due to a $9.8 million non-cash revaluation loss on Ethereum holdings, attributed to a 46% drop in Ethereum's price during the quarter.
• Ethereum Accumulation Strategy: Despite the price drop, the company increased its Ethereum holdings by 23% to 7,023 ETH as of March 31, 2025, emphasizing its long-term value creation strategy.
• Cash and Investments: Cash equivalents and short-term investments totaled $74.9 million as of March 31, 2025, an increase from the end of 2024, driven by positive operating income.

Business Segments and Product Strategy

Intchains operates across three core segments:

1. Home Miners: Produces home miners for high-potential altcoins like Aleo and Isoskeletons under the Gold Show brand. The successful launch of the Aleo Miner Series accounted for nearly 75% of Q1 revenue due to strong margins and timely market response.
2. Asset Optimization: Reinvests profits to accumulate Ethereum, optimizing its asset structure.
3. Web-based Innovation: Actively explores web-based innovations for long-term growth.

The company's differentiated strategy focuses on "blue ocean" altcoin miners and mining sectors, allowing them to maintain higher gross margins than the industry average for Bitcoin miners, regardless of market cycles. They aim to be a top-tier player in Dogecoin mining equipment, continuously refining their products.

In March 2025, Intchains launched the Gold Show Bites, an innovative dual-mining machine supporting Aleo, Doge, and Litecoin. This product features flexible mining cards, allowing users to switch between cryptocurrencies based on market conditions, addressing the common pain point of needing new machines for different projects. While not expected to be a large revenue driver itself, it aims to broaden the customer base, particularly individual miners, by lowering the entry barrier into personal mining.

Outlook and Future Catalysts

Intchains is optimistic about sustaining momentum, projecting first-half 2025 revenue between RMB 118 million and RMB 200 million (approximately $16.3 million to $27.6 million USD, based on current exchange rates).

Key long-term catalysts identified include:

• Potential interest rate cuts improving liquidity.
• Broader regulatory support for spot crypto ETFs beyond Bitcoin.
• New blockchain applications in payments and AI agents.
• Continuous advancements in zero-knowledge proofs and Ethereum protocol upgrades.
• Passage of new spot Bitcoin reserves at the USD level, potentially encouraging similar moves globally.
• Significant Ethereum updates, including the Dencun upgrade and anticipated Layer 1 scaling.

The company remains confident in Ethereum's future and the broader blockchain ecosystem, committed to its long-term Ethereum accumulation strategy. Future revenue mix is expected to come from Dogecoin miners, Aleo miners, and new innovative miners, with percentages depending on market prices.