The9's $32.4 million profit was driven by 9BIT token gains

The9's second-quarter net income rose to $32.4 million from $22.6 million in the first quarter, but the result was driven by its 9BIT token holdings rather than operating businesses. The Nasdaq-listed company reported just $712,000 of revenue, no cryptocurrency-mining revenue and a $13.4 million operating loss. Below operating income or loss, it recorded a $47.2 million fair-value gain on 9BIT tokens and $11.1 million in cryptocurrency rewards. The combined $58.3 million exceeded quarterly net income and rose from $37.6 million in the first quarter, while the operating loss narrowed by less than $1 million. The company said the second-quarter increase was more than 39% using rounded figures, although exact statement values imply a larger gain. Because the reward and subsequent fair-value change flowed through net income outside operating revenue, neither generated cash for The9's businesses. The result met the second-quarter growth condition in a long-term management incentive plan that could make senior management eligible for equity awards representing up to 12% of outstanding shares. The awards remain subject to future quarterly results, multi-year vesting and a three-year lock-up. The9 held 1.9 billion 9BIT tokens valued at $96.6 million on June 30, while its Aug. 24 release put total crypto holdings at about $120 million, including 347 Bitcoin and the 9BIT tokens, and warned the figure might not reflect realizable value. 9BIT trades on BingX, MEXC and KuCoin; CoinGecko showed about $5.7 million in 24-hour volume across three tracked markets on Aug. 25, with circulating supply unreported.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.
The9's $32.4 million profit was driven by 9BIT token gains - CoinPost Terminal