Nasdaq-listed company The9 reported a net income of $32.4 million for the quarter ended June 30, up from $22.6 million in the first quarter, despite recording an operating loss of $13.4 million and just $712,000 in revenue. The company also recorded zero cryptocurrency-mining revenue during the period.
The positive net income was driven by accounting gains rather than operational businesses. Below the operating line, The9 recognized a $47.2 million fair-value gain on 9BIT tokens alongside an additional $11.1 million cryptocurrency reward. Together, these two items totaled $58.3 million, which exceeded the quarter's net income. These token contributions generated no cash for the company's operating businesses.
The higher net-income result fulfilled a second-quarter growth condition under a long-term management incentive plan. Under this plan, senior management may become eligible for equity awards covering up to 12% of The9's outstanding shares, provided net income in each remaining quarter of 2026 exceeds the first-quarter baseline.
The9 noted that award issuance and vesting remain conditional, subject to multi-year vesting and a three-year lock-up. As of June 30, the company carried its 1.9 billion 9BIT tokens at $96.6 million. By its Aug. 24 release, total crypto holdings were valued at approximately $120 million based on quoted prices, including 347 Bitcoin and the 9BIT tokens. The company cautioned that these figures might not reflect realizable value, as the sale value of the 1.9 billion-token holding remains untested.
