This crypto firm lost $13M operating, but paper gains on its own token cleared a path to major payout bonuses
The9’s second-quarter revenue was pushed by accounting for its 9BIT token holdings moderately than its working companies, with one fair-value achieve alone exceeding the corporate’s backside line.
The Nasdaq-listed firm reported $32.4 million of net income for the quarter ended June 30, up from $22.6 million within the first quarter. Yet The9 recorded solely $712,000 of income, zero cryptocurrency-mining income and a $13.4 million loss from operations.
Token earnings outweighed operations
Below the working line, The9 acknowledged a $47.2 million fair-value achieve on 9BIT tokens and a further $11.1 million cryptocurrency reward. Together, these two gadgets totaled $58.3 million, greater than the quarter’s internet earnings.
The comparability with the primary quarter sharpens that divide. The9’s 9BIT reward and fair-value earnings rose from $37.6 million within the first quarter to $58.3 million within the second. Its working loss narrowed by lower than $1 million.
The9’s first-quarter filing reported $22.6 million of internet earnings. The firm described the second-quarter enhance utilizing rounded figures as greater than 39%, whereas the precise assertion values suggest a bigger share achieve.
The accounting therapy separates the token contribution from the corporate’s working outcome. The firm recorded the cryptocurrency reward and subsequent fair-value change after working earnings or loss, and each flowed by means of internet earnings. Both gadgets sat outdoors working income and generated no money for the corporate’s companies.
Incentive awards stay conditional
That greater net-income outcome happy the second-quarter progress situation in a long-term administration incentive plan. Under the plan, senior administration could develop into eligible for fairness awards representing up to 12% of The9’s excellent shares. Net earnings in every remaining quarter of 2026 should exceed the first-quarter outcome.
Award issuance and vesting stay conditional. The9 mentioned the awards are topic to multi-year vesting and a three-year lock-up, making the quarter’s outcome one situation being met moderately than instant dilution. Future quarters should individually exceed the first-quarter baseline for his or her respective situations.
The9 carried its 1.9 billion 9BIT tokens at $96.6 million on June 30. As of the Aug. 24 launch, it valued complete crypto holdings at about $120 million primarily based on quoted costs. That determine included 347 Bitcoin and 1.9 billion 9BIT tokens, and the corporate warned it may not mirror realizable worth.
9BIT has spot markets on BingX, MEXC and KuCoin. CoinGecko confirmed about $5.7 million in 24-hour trading volume throughout three tracked markets on Aug. 25, with circulating provide unreported. That exercise provides a reference worth, whereas the sale worth of The9’s 1.9 billion-token holding stays untested.
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