Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Intchains Group Ltd (NASDAQ:ICG) reported a significant revenue increase of 109% year-over-year, reaching $10.2 million in Q4 2024.
• The company's non-GAAP adjusted net income rose by 54% to $2 million, indicating strong financial performance.
• ICG's strategic focus on accumulating Ethereum paid off, with holdings increasing by 37% quarter-on-quarter.
• The launch of new mining products and a hardware wallet is expected to drive significant performance in the first half of 2025.
• ICG has a robust balance sheet with total assets of approximately $149 million, supporting future growth initiatives.

Negative Points

• Some Q4 2024 orders will only be recognized as revenue in 2025 due to production cycle limitations.
• The company experienced a dip in gross margin in Q4 due to a higher proportion of lower-margin coin miner sales.
• ICG underestimated the demand for Dogecoin mining rigs, leading to increased contract liabilities.
• The overall crypto market is under pressure due to concerns over economic recession and other market events.
• ICG's financial performance is heavily reliant on the volatile cryptocurrency market, which poses risks.

Q & A Highlights

• Warning! GuruFocus has detected 1 Warning Sign with ICG.

Q: Can you discuss your expectations for Dogecoin in 2025 and the current demand for Dogecoin mining rigs? A: We believe the Dogecoin mining market has the potential to surpass Bitcoin. Our plan for 2025 includes reducing costs and improving mining efficiency. We anticipate strong demand for our Dogecoin mining products, which will be launched this year. (Respondent: Unidentified_3, CFO)

Q: What are your expectations for Aleo mining equipment demand in the coming months? A: Aleo is based on zero-knowledge proof technology, and we are optimistic about its potential. We have developed the first Aleo mining machine, which is generating attractive returns. We will monitor the project's development and upgrade our machines accordingly. (Respondent: Unidentified_3, CFO)

Q: Given the market pressure, what is the company's guidance for the first quarter of 2025? A: Despite market pressures, we believe the crypto market remains in a full cycle. Our guidance for Q1 2025 is conservative, considering current market conditions. We remain confident in the crypto industry's potential. (Respondent: Unidentified_3, CFO)

Q: What is the company's outlook for the crypto market this year? A: We are optimistic about the crypto market, despite recent underperformance. We believe it's a good opportunity to buy the dip. Our strategy includes accumulating Ethereum and upgrading Dogecoin mining machines. (Respondent: Unidentified_2, Investor Relations Director)

Q: What are the market catalysts for the company's growth in 2025? A: Key catalysts include the approval of Dogecoin and Litecoin ETFs, favorable altcoin price performance, and new technology initiatives in the crypto market. These factors could enhance our performance. (Respondent: Unidentified_3, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.