Crypto firm The9 reports $32.4M net income despite $13.4M operating loss due to token gains

The9’s Q2 net income driven by token value changes, not operations

Nasdaq-listed crypto company The9 reported a net income of $32.4 million for the second quarter of 2026, despite losing $13.4 million in its core business operations. The profit came from accounting gains on its own 9BIT token, not from revenue or cash flow.

The company’s operating loss narrowed slightly from the first quarter, but its net income rose sharply due to a $47.2 million gain from the increasing value of its 9BIT token holdings. This gain, along with an $11.1 million token reward, offset the operating loss and pushed net income higher.

Key financial figures from The9’s Q2 report

• The9 reported $32.4 million in net income for Q2 2026, up from $22.6 million in Q1.
• The company’s operating loss was $13.4 million, only slightly better than Q1.
• Revenue was just $712,000, with no income from cryptocurrency mining.
• A $47.2 million gain from the fair-value increase of its 9BIT token drove net income.
• An additional $11.1 million came from token rewards, totaling $58.3 million in non-operating income.

SEC filing confirms Q2 net income and token gains

The9’s SEC filing for the quarter ended June 30, 2026, shows the company’s net income was primarily driven by changes in the value of its 9BIT token holdings. The filing states that the $47.2 million fair-value gain and $11.1 million token reward were recorded after operating income, meaning they did not generate cash for the business.

The company also noted that its 1.9 billion 9BIT tokens were valued at $96.6 million as of June 30, with total crypto holdings worth about $120 million based on market prices as of August 24. However, The9 warned that these values might not reflect what the tokens could actually be sold for.

Token markets and liquidity remain untested

The 9BIT token is traded on exchanges like BingX, MEXC, and KuCoin, with a reported 24-hour trading volume of about $5.7 million as of August 25. However, the circulating supply of 9BIT is not publicly disclosed, and The9’s large holdings have not been sold, so the actual market value remains uncertain.

Management bonuses tied to future net income targets

The9’s higher net income in Q2 met one condition for a long-term management incentive plan. Under this plan, senior executives could receive equity awards worth up to 12% of the company’s outstanding shares. However, these awards are not guaranteed—they depend on net income in the remaining quarters of 2026 exceeding the first quarter’s $22.6 million result.

The awards would also vest over multiple years and include a three-year lock-up period, meaning any potential impact on shareholders would not be immediate.

What is confirmed about The9’s financial results

• The9 reported $32.4 million in net income for Q2 2026, up from $22.6 million in Q1.
• The company had a $13.4 million operating loss and only $712,000 in revenue.
• Net income was driven by a $47.2 million gain from the increasing value of its 9BIT token holdings.
• The9 holds 1.9 billion 9BIT tokens, valued at $96.6 million as of June 30.
• Q2 net income met one condition for potential management bonuses, but future quarters must also exceed Q1 net income.

What remains unclear about The9’s financial health

• Whether The9 can sustain net income in future quarters without relying on token value changes.
• The actual market value of The9’s 1.9 billion 9BIT tokens if sold in large quantities.
• Whether the company’s operating businesses can become profitable without token-related gains.
• If future quarters will meet the net income conditions required for management bonuses.

Why this matters for crypto investors and companies

The9’s financial results highlight how some crypto companies rely on token value changes rather than traditional revenue to report profits. This accounting practice can create large paper gains that boost net income but do not generate cash for the business.

Investors may need to carefully review whether a company’s profits come from its core operations or from changes in the value of its own tokens. The9’s case also shows how token holdings can impact financial incentives for management, even if those tokens have not been sold.

Sources

• CryptoSlate
• The9 Q2 2026 SEC Filing
• The9 Q1 2026 SEC Filing