Intchains Group's Q3 2025: Contradictions Emerge on Dogecoin Launch, Staking Platform Integration, R&D Spending, and Strategic Focus

Date of Call: None provided

Financials Results

• Revenue: RMB 9.1 million (Q3 2025); 9 months 2025 revenue RMB 184.7 million ($25.9M), down 11% YOY
• Operating Margin: Loss from operations RMB 41.8 million (Q3 2025); 9 months 2025 loss from operations RMB 21.0 million vs income from operations RMB 39.8 million in 9M 2024

Guidance:

• XTM miners expected to contribute meaningfully to Q4 2025 revenue.
• Test chips for Dogecoin miner expected in Dec 2025; product launch planned H1 2026 with revenue contribution in H2 2026.
• Paused ETH purchases in Q3 and do not plan to resume in Q4; continue long-term dollar-cost-averaging strategy.
• Initiated FalconX staking (~1,000 ETH) and agreed to acquire a PoS platform to expand staking (Ethereum, Avalanche, Manta, Conflux); expect staking to drive 2026 revenue and margin improvement.
• Q4 2025 R&D spend expected to decline and further decrease in 2026.

Business Commentary:

* Revenue and Operating Performance: - Intchains reported Q3 revenue of RMB 9.1 million, a decrease from the previous quarter, and recorded a loss for operations of RMB 41.8 million. - This decrease was primarily due to lower sales of mining machines and softer demand for products during the stable stage of the ALEO mining project.

• Research and Development Investments:
• The company invested approximately $9 million in R&D throughout the year, contributing to technological advancements and competitive altcoin mining machines.

• Investments have led to the introduction of new products like the Goldshell Byte and XTM miners, aimed at enhancing efficiency and meeting global miners' evolving needs.

• Cryptocurrency Holdings and Strategy:

• Intchains held 9,919 ETH-based cryptocurrencies valued at approximately $37 million as of September 30, 2025.

• The partnership with FalconX and the acquisition of a proof-of-stake platform aim to optimize ETH acquisition, enhance yield strategies, and expand staking operations, positioning the company for future growth in the blockchain infrastructure ecosystem.

• New Product Launches and Growth Strategy:

• The company expects its new XTM miners to contribute significantly to revenue in Q4 2025, with the Dogecoin mining machine launch planned for the first half of 2026.
• The development and sale of Goldshell mining machines and ETH accumulation and staking activities are central to the company's growth strategy for 2026 and beyond.

Sentiment Analysis:

Overall Tone: Neutral

• Management disclosed 'revenue for Q3 2025 decreased to RMB 9.1 million' and an operating loss of RMB 41.8 million, while 9M 2025 net income was RMB 78.7 million vs RMB 38.7 million a year earlier. Management emphasized optimism about XTM and Dogecoin product launches and a staking-platform acquisition driving 2026 revenue and margin improvements.

Q&A:

• Question from Mark Palmer (Benchmark Company): With regard to the Dogecoin launch in 2026, which is a big part of the company's growth strategy for next year, how should we think about the timing of that launch and then the timing of the rollout throughout the year?
  Response: Expect test chip in 2025, product launch in H1 2026, with revenue contribution beginning in H2 2026.

• Question from Mark Palmer (Benchmark Company): With the announcement of the acquisition of the staking platform from ECHOLINK, assuming that deal closes as expected, how are you thinking about the role that staking would play within your platform? And to what extent would this be a platform you'd be using for your own staking versus what you would be able to do with third-party customers?
  Response: Deal not closed yet; preliminary security/integration work done; upon close the company will stake its ~9,000 ETH on the platform and will provide an operational roadmap including third-party collaboration.

• Question from Matthew Galinko (Maxim Group): Do you have any expectations on how you'll market the staking platform to customers? And do you think that would be branded under Goldshell or under its existing brand?
  Response: Platform will operate under the company's branding; final choice between Intchains, Goldshell or a new brand not decided and will be disclosed after closing.

• Question from Matthew Galinko (Maxim Group): Can you provide any help for 4Q R&D? Do you expect to be investing in the December quarter? Or is the number you reported in the third quarter a relatively good one to use for fourth quarter? Some kind of outlook for how we should be thinking about R&D for the balance of the year.
  Response: R&D spiked in Q3 for new product launches (XTM); Q4 R&D is expected to decrease (no chip tape-out planned) and overall R&D spending should decline in 2026.

Contradiction Point 1

Dogecoin Launch and Revenue Contribution

It directly impacts expectations regarding the timeline and revenue contribution from the new Dogecoin mining machine launch, which is a key part of the company's growth strategy.

When will the Dogecoin launch in 2026 occur and what is the rollout timeline for that year? - Mark Palmer (The Benchmark Company)

20251114-2025 Q3: We expect to receive the test chip within 2025 and assess the power efficiency of our new Dogecoin mining machine. Our plan is to launch the mining machine in the first half of 2026 and contribute revenue in the second half of the year. - Chaowei Yan(CFO)

Can you clarify the timing of the Dogecoin 2026 launch and its year-long rollout? - Mark Palmer (The Benchmark Company)

2025Q3: The 2026 growth will be driven by the new product launch, especially Dogecoin. Test chips are expected in 2025, which will determine power efficiency. Launch planned for the first half of 2026, with revenue contributions in the second half. - Chaowei Yan(CFO)

Contradiction Point 2

Staking Platform Acquisition and Integration

It involves the status and plans for the acquisition of the staking platform, which is expected to play a significant role in the company's growth strategy.

Following the acquisition of Echolink's staking platform, how will staking function within your platform - how much will this be used for your own staking versus third-party customers? - Mark Palmer (The Benchmark Company)

20251114-2025 Q3: The transaction has not closed yet, but we have done preliminary work for integration. Once completed, we will update investors on the roadmap and collaboration plans. - Chaowei Yan(CFO)

How do you plan to integrate the staking platform acquired from Echolink into your platform, and what is the distinction between using it for your own staking versus offering it to third-party customers? - Mark Palmer (The Benchmark Company)

2025Q3: The staking platform acquisition is yet to be closed. 9,000 Ethereum units will be staked in the platform to generate ETH. Post-acquisition, further details will be provided, including operational roadmap and collaboration plans. - Chaowei Yan(CFO)

Contradiction Point 3

Staking Platform and ETH Strategy Integration

It involves the integration of the ETH treasury and the newly acquired staking platform, which impacts the company's strategy for generating income from its ETH holdings.

Following the acquisition of ECHOLINK's staking platform, how will staking play a role within your platform? And how will the platform be used for your own staking versus third-party customers? - Mark Palmer (The Benchmark Company)

20251114-2025 Q3: Our near 9,000 Ethereum units will be staked in this platform to generate ETH. - Chaowei Yan(CFO)

How much of your Ethereum holdings do you plan to allocate to staking or trading strategies to achieve a 10% yield, and would this include half or more of your treasury? - Matthew Galinko (Maxim Group)

2025Q2: We will explore partnerships with decentralized exchanges and expand staking. Over 80% of our ETH will be used to generate income, but not all in one place. - Chaowei Yan(CFO)

Contradiction Point 4

R&D Spending and Product Development

It involves the company's R&D spending and product development strategy, which are crucial for innovation and competitiveness in the market.

Can you clarify the guidance for Q4 R&D spending? Should we expect changes in the December quarter compared to the third quarter, or is Q3's reported amount a reasonable proxy? Would Q2's pattern be a better reference? - Matthew Palinko (Maxim Group)

20251114-2025 Q3: In Q4, we do not expect a new chip to be ready, so R&D expenses will decrease. We plan to reduce total R&D expenses in 2026. - Chaowei Yan(CFO)

Did Q1 R&D spending decrease from Q4? Given your plans to launch new products and the success of the Aleo miner, should we expect higher R&D spending this year or a baseline adjustment? - Matthew Galinko (Maxim Group)

2025Q1: R&D expense. Yes, maybe we cannot predict this because last year and the first half of this year, we launched 3 new projects rapidly. - Chaowei Yan(CFO)

Contradiction Point 5

Strategic Focus on Staking Platform Integration

It reflects differences in the company's strategic focus on the integration and role of the staking platform, which impacts its growth strategy.

How will the acquisition integrate into your overall strategy, and how should we view its internal and external use? How does this align with your broader platform's strategic vision? - Mark Palmer (The Benchmark Company)

20251114-2025 Q3: We are in discussions with a few decentralized exchanges to pool the liquidity requirements of our ecosystem partners. We will provide our partners with tools to integrate Bitcoin and Ethereum transactions into their applications and set up staking operations to generate passive income. - Chaowei Yan(CFO)

How does the staking platform acquisition align with your broader strategy, and how should we think about its internal and external use in relation to your strategic vision? - Mark Palmer (The Benchmark Company)

2025Q2: We are working actively to diversify our client base to include digital asset exchanges and other service providers that actually don't directly touch the infrastructure. As we build out and expand the digital asset ecosystem, we see the potential to generate meaningful revenue contributions from these new partnerships. - Chaowei Yan(CFO)