This crypto firm lost $13M operating, but paper gains on its own token cleared a path to major payout bonuses

The9’s second-quarter profit was driven by accounting for its 9BIT token holdings rather than its operating businesses, with one fair-value gain alone exceeding the company’s bottom line.

The Nasdaq-listed company reported $32.4 million of net income for the quarter ended June 30, up from $22.6 million in the first quarter. Yet The9 recorded only $712,000 of revenue, zero cryptocurrency-mining revenue and a $13.4 million loss from operations.

Token income outweighed operations

Below the operating line, The9 recognized a $47.2 million fair-value gain on 9BIT tokens and an additional $11.1 million cryptocurrency reward. Together, those two items totaled $58.3 million, more than the quarter’s net income.

The comparison with the first quarter sharpens that divide. The9’s 9BIT reward and fair-value income rose from $37.6 million in the first quarter to $58.3 million in the second. Its operating loss narrowed by less than $1 million.

The9’s first-quarter filing reported $22.6 million of net income. The company described the second-quarter increase using rounded figures as more than 39%, while the exact statement values imply a larger percentage gain.

The accounting treatment separates the token contribution from the company’s operating result. The company recorded the cryptocurrency reward and subsequent fair-value change after operating income or loss, and both flowed through net income. Both items sat outside operating revenue and generated no cash for the company’s businesses.

Incentive awards remain conditional

That higher net-income result satisfied the second-quarter growth condition in a long-term management incentive plan. Under the plan, senior management may become eligible for equity awards representing up to 12% of The9’s outstanding shares. Net income in each remaining quarter of 2026 must exceed the first-quarter result.

Award issuance and vesting remain conditional. The9 said the awards are subject to multi-year vesting and a three-year lock-up, making the quarter’s result one condition being met rather than immediate dilution. Future quarters must separately exceed the first-quarter baseline for their respective conditions.

The9 carried its 1.9 billion 9BIT tokens at $96.6 million on June 30. As of the Aug. 24 release, it valued total crypto holdings at about $120 million based on quoted prices. That figure included 347 Bitcoin and 1.9 billion 9BIT tokens, and the company warned it might not reflect realizable value.

9BIT has spot markets on BingX, MEXC and KuCoin. CoinGecko showed about $5.7 million in 24-hour trading volume across three tracked markets on Aug. 25, with circulating supply unreported. That activity offers a reference price, while the sale value of The9’s 1.9 billion-token holding remains untested.