Intchains Abandons Ethereum Purchases Amid 94% Revenue Collapse

Nasdaq-listed Intchains Group has pivoted away from buying fresh Ethereum after its first-half revenue plummeted by 94% to RMB11.1 million ($1.6 million). The company's core hardware business is struggling, with nearly all of the revenue coming from a sale of non-core chip inventory to a related party.

This shift in focus comes as Intchains redirects capital toward developing and commercializing its next-generation ASIC (Application-Specific Integrated Circuit) and exploring AI opportunities. The company plans to maintain its existing treasury and continue generating staking yield.

Intchains ended June with RMB461.1 million ($68 million) of cash and short-term investments, which it says is enough to fund the ASIC program internally and support planned activities for at least 12 months. This move marks a reversal from earlier this year when Intchains was pursuing a dollar-cost-averaging strategy to steadily accumulate Ethereum.