1H 2025 Financial Highlights
Total revenue was US$47.7 million, compared with US$144.5 million in the same period of 2024.
Mining revenue increased by 164.4% year-over-year to US$30.8 million.
Gross loss was US$6.3 million, compared with gross profit of US$84.8 million in the same period of 2024.
Management Commentary
"The first half of 2025 presented significant headwinds for the alternative crypto mining sector, primarily driven by a sharp decline in the market price of KAS coin," said Mr. Allen Qingfeng Wu, Chief Executive Officer of BGIN. "This directly impacted the demand for our mining machines, which has historically been our primary revenue source. In response, we executed a strategic pivot, reallocating resources away from low margin mining pool revenue stream and significantly scaling our self-mining operations. This is reflected in our mining revenue, which grew by 164% to $30.8 million in 1H 2025, demonstrating our operational flexibility."
Mr. Pengju Wang, Co-Chief Financial Officer of BGIN, added, "Our financial results for the period reflect the challenging market conditions, particularly the contraction in high-margin machine sales. However, we have taken decisive actions to preserve our strong liquidity position. Our focus remains on strategic capital allocation towards our proprietary R&D and mining farm investment, which we believe is the key to value creation and long-term competitiveness in this cyclical industry."
1H 2025 Unaudited Financial Results
Total revenues were US$47.7 million, compared with US$144.5 million in the same period of 2024.
Mining revenue was US$30.8 million, an increase of 164.4% from US$11.6 million. This was primarily due to the Company's expanded deployment of KAS mining machines, increasing the number of machines in operation.
Revenue from sales of mining machines was US$9.7 million, compared with US$94.9 million from the same period of 2024. The change was primarily due to the decrease in the market price of KAS, which resulted in significantly lower demand and the number of units sold (6,618 units sold in 1H 2025 vs. 47,252 in 1H 2024).
Revenue from hosting services was US$2.3 million, compared with US$2.1 million from the same period of 2024, remaining largely stable year-over-year.
Revenue from mining pool was US$4.8 million, compared with US$35.8 million from the same period of 2024. The change was due to the Company's strategic decision in February 2025 to shift its mining pool operations primarily for internal use due to its lower gross profit margin and limited long-term strategic value.
Costs of revenue were US$54.0 million in 1H 2025, a decrease of 9.6% from US$59.7 million in 1H 2024. The decrease reflected lower costs of mining machine sales and mining pool costs, offset by a significant increase in self-mining costs, due to higher electricity rates and depreciation from the increased machine deployment.
Gross loss was US$6.3 million in 1H 2025, compared to a gross profit of US$84.8 million in the same period of 2024. The negative swing was primarily driven by the margin compression in machine sales and the gross loss from the scaled self-mining operations, where increased revenue was offset by even higher operational costs.
Operating costs and expenses were US$55.1 million in 1H 2025, an increase of 582.8% from US$8.1 million in the same period of 2024. The increase was primarily due to a US$19.1 million non-cash impairment charge on property and equipment, a US$13.3 million increase in the change in fair value of cryptocurrencies, and higher research and development and general and administrative expenses.
Basic & diluted net loss per share was US$0.56 in 1H 2025, compared to basic & diluted net income per share of US$0.59 in the same period of 2024.
About BGIN BLOCKCHAIN LIMITED
BGIN BLOCKCHAIN LIMITED (NASDAQ:BGIN) is a digital asset technology company with proprietary cryptocurrency-mining technologies that leverages its experience in designing ASIC chips and mining machines to penetrate new cryptocurrency opportunities and executing on long term strategic focus on self-mining. BGIN's mission is to make crypto mining accessible to all by developing innovative products tailored to various market needs, from beginners to large-scale industrial miners. BGIN designs and manufactures mining machines under its ICERIVER brand, providing customers with operational flexibility through advanced mining infrastructure and hosting services.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about BGIN's beliefs, plans, and expectations, are forward-looking statements. Although BGIN believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and BGIN cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results set forth in BGIN's filings with the U.S. Securities and Exchange Commission (the "SEC"). Additional factors are discussed in BGIN's filings with the SEC, which are available for review at www.sec.gov. All information provided in this press release is as of the date of this press release, and BGIN does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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BGIN BLOCKCHAIN LIMITEDCONDENSED CONSOLIDATED BALANCE SHEETSAS OF JUNE 30, 2025 AND DECEMBER 31, 2024(US$, except share data, or otherwise noted)
June 30,2025
December 31, 2024
US$
US$
(Unaudited)
Assets
Current Assets
Cash and cash equivalents
23,906,114
114,804,348
Inventories
23,437,790
12,491,133
Prepaid expenses
30,049,159
9,188,914
Other receivable
4,538,348
8,945,986
Deferred issuance costs
1,517,669
795,797
Due from related parties
1,447,421
101,336
Intangible assets – cryptocurrencies
50,975,122
32,143,476
Rights to receive cryptocurrencies
—
16,193,593
Cryptocurrencies loan receivable
5,000,000
—
Cryptocurrencies held as collateral
6,557,368
—
Total current assets
147,428,991
194,664,583
Non-current assets
Deposits and other non-current assets
2,680,439
1,834,897
Right of use assets
326,549
431,707
Deferred income tax assets
2,112,353
2,112,353
Property and equipment, net
42,304,537
71,744,370
Total assets
194,852,869
270,787,910
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Current liabilities
Accounts payable and accrued liabilities
5,372,174
7,190,436
Taxes payable
35,331,370
51,845,186
Contract liabilities
470,176
952,340
Due to related party
26,840
10,363
Operating lease liability
288,886
322,388
Other payables
168,552
281,898
Obligation to return collateral
6,557,368
—
Total current liabilities
48,215,366
60,602,611
Operating lease liability, non current
37,812
123,015
Total liabilities
48,253,178
60,725,626
Commitments and contingencies
Shareholders' equity
Class A ordinary shares, $0.0000695652173913043 par value, 852,581,250 shares authorized, 85,581,566 and 85,258,128 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively (1)
—
