Intchains Group Ltd (NASDAQ:ICG), a provider of integrated solutions consisting of high-performance computing ASIC chip-based solutions products and a corporate holder of cryptocurrencies based on Ethereum, or ETH, stock rose 3.56% (As on June 26, 11:56:18 AM UTC-4, Source: Google Finance) after Benchmark initiated coverage of the company with a Buy rating and $10 price target. The Web3 infrastructure provider with a niche focus on designing application-specific integrated circuit, or ASIC, chips used in blockchain applications, including mining equipment, diversified into crypto mining equipment and expanded its global reach through its acquisition of Goldshell earlier this year, the analyst tells investors.

Meanwhile, Sales volume of ASIC chips remained steady at 494,235 units for the first quarter of 2024, compared to 497,854 units for the same period of 2023. ASIC chip sales for the first quarter of 2024 consisted of 410,162 units sold directly to customers and 84,073 units embedded in computing equipment for blockchain applications that we began offering to customers in the fourth quarter of 2023. Revenue was RMB24.3 million (US$3.4 million) for the first quarter of 2024, representing a decrease of 6.8% from RMB26.0 million for the same period of 2023. Net loss was RMB14.8 million (US$2.1 million) for the first quarter of 2024, compared to net income of RMB4.7 million for the same period of 2023. As of March 31, 2024, the fair value of the cryptocurrency assets was RMB23.6 million (US$3.3 million), primarily comprised of approximately 825 ETH, with a total fair value of RMB21.9 million (US$3.1 million). Other income, net, decreased by 96.6% to RMB0.1 million (US$ nil) for the first quarter of 2024 from RMB4.1 million for the same period of 2023. The decrease was primarily due to a decrease in grants received from the local government, which have no repayment obligations.

During the first quarter of 2024, the industry demonstrated a clear upward trajectory. As a market leader, Intchains fully leveraged its resources and technological advantages to seize rising opportunities within the industry and along the value chain. In the first quarter of 2024, the company began trial production and sales of our newly introduced Goldshell-branded Box series computing equipment for blockchain applications. These devices feature the latest ASIC chips, designed and manufactured using a 12nm process node, which swiftly garnered widespread market acclaim and bolstered recognition of the cutting-edge technology and brand.

Further, the company has begun implementing a pivotal cryptocurrency acquisition strategy in this quarter to expand the investment in cryptocurrencies with ETH-based cryptocurrencies serving as the primary long-term asset reserve.