Chaince Digital Holdings Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
CD$5.15-12.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001493152-26-023076
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001493152-26-038400
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 164 previous paragraphs and 185 current paragraphs.
106 unchanged; 51 reworded; 23 added; 7 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 12 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
As of August 11, 2026, 86,569,508 ordinary shares of the Company were freely tradable without contractual lock-up restrictions or other resale restrictions. The number of freely tradable ordinary shares differs from the Company’s Public Float because Public Float excludes shares held by affiliates, while freely tradable shares are determined based on applicable contractual and regulatory transfer restrictions.
Current report
For the six months ended June 30, 2026 and 2025, total revenue from financial services and advisory businesses was $970,752 and $258,569, respectively, representing an increase of $712,183, or 275.43%.
Current report
For the six months ended June 30, 2026 and 2025, total cost of revenue from financial services and advisory businesses was $530,172 and $160,551, respectively, representing an increase of $369,621, or 230.22%.
Current report
For the six months ended June 30, 2026 and 2025, gross profit from financial services and advisory businesses was $440,580 and $98,018, respectively. The Company’s results improved by $342,562 for the six months ended June 30, 2026, demonstrating year-over-year improvement in profitability.
Current report
Gross profit margin was 48.05% for the three months ended June 30, 2026, compared to 60.11% for the three months ended June 30, 2025. This represented a decrease of 12.07 percentage points, primarily due to a larger increase in cost of revenue.
Current report
The Company’s general and administrative expenses for the three months ended June 30, 2026 amounted to $1,482,328, and consisted primarily of $303,496 in employment costs, $838,821 in professional fees, and $340,011 in other office expenses.
Current report
The Company’s general and administrative expenses for the six months ended June 30, 2026 amounted to $2,626,440, and consisted primarily of $567,433 in employment costs, $1,279,635 in professional fees, and $779,372 in other office expenses.
Current report
The Company’s general and administrative expenses for the three months ended June 30, 2025 amounted to $984,740, consisting primarily of $667,979 in employment costs, $222,136 in professional fees, and $94,625 in other office expenses.
Current report
The Company’s general and administrative expenses for the six months ended June 30, 2025 amounted to $1,698,162, consisting primarily of $893,372 in employment costs, $464,012 in professional fees, and $340,778 in other office expenses.
Current report
For the six months ended June 30, 2026, loss on market price of stablecoins and digital assets from continuing operations totaled $388,967, consisting of: (a) loss on market price of Bitcoin of $282,124; (b) loss on market price of USD Coin of $1,669; (c) loss on market price of Solana (SOL) of $49,280; (d) loss on market price of Filecoin (held outside the mining node structure) of $55,540; and (e) loss on market price of Tether USD of $354.
Current report
For the three and six months ended June 30, 2025, loss on market price of stablecoins and digital assets from continuing operations totaled $13,831 and $82,423, respectively, both of which were solely derived from loss on market price of Filecoin (held outside the mining node structure).
Current report
For the three months ended June 30, 2026, gain on market price of stablecoins and digital assets from discontinued operations totaled $26,742, consisting of: (a) $25,577 gain attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $1,165 gain arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Current report
For the six months ended June 30, 2026, loss on market price of stablecoins and digital assets from discontinued operations totaled $99,974, consisting of: (a) $102,109 loss attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $2,135 gain arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Current report
For the three months ended June 30, 2025, loss on market price of stablecoins and digital assets from discontinued operations totaled $105,486, consisting of: (a) $89,232 loss attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $16,254 loss arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Current report
For the six months ended June 30, 2025, loss on market price of stablecoins and digital assets from discontinued operations totaled $570,742, consisting of: (a) $576,020 loss attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $5,278 gain arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Current report
The Company’s interest income/(expenses), net for the six months ended June 30, 2025 amounted to $ 171,431, and consisted of negative $103,767 in convertible notes interest costs, and positive $275,198 in interest income from cash deposits and short-term investments and providing loans to external parties.
Current report
Loss before income taxes was $2,271,873 for the six months ended June 30, 2026, compared with loss before income taxes of $1,639,278 for the six months ended June 30, 2025.
Current report
We recorded income tax benefits of $136,488 for the six months ended June 30, 2026 and income tax benefits of $154,096 for the six months ended June 30, 2025.
Current report
Loss from continuing operations was $1,048,732 for the three months ended June 30, 2026, compared with loss from continuing operations of $781,420 for the three months ended June 30, 2025.
Current report
Loss from continuing operations was $2,135,385 for the six months ended June 30, 2026, compared with loss from continuing operations of $1,485,182 for the six months ended June 30, 2025.
Current report
For the six months ended June 30, 2026, the Company recognized a loss from discontinued operations of $322,059, compared to $1,362,648 for the six months ended June 30, 2025.
Current report
Subsequent to June 30, 2026, the closing of the Company’s registered direct offering (the “Offering”) occurred on August 11, 2026. Upon the closing, the Company received aggregate gross proceeds of US$16,196,800 before deducting offering expenses. The Company intends to use the net proceeds from the Offering for its digital asset reserve, working capital and/or general corporate purposes. See Note 17—“Subsequent Events.”
Current report
Net cash provided by operating activities was $98,627 for the six months ended June 30, 2026, compared with net cash used of $1,328,938 for the six months ended June 30, 2025.
Removed paragraphs (7)
Previous report
The Company’s general and administrative expenses for the three months ended March 31, 2026 amounted to $1,144,112, consisted primarily of $263,937 in employment costs, $440,814 in professional fees, and $439,361 in other office expenses.
Previous report
The Company’s general and administrative expenses for the three months ended March 31, 2025 amounted to $713,422, consisting primarily of $225,393 in employment costs, $241,876 in professional fees, and $246,153 in other office expenses.
Previous report
For the three months ended March 31, 2025, loss on market price of stablecoins and digital assets from continuing operations totaled $68,592, which solely from loss on market price of Filecoin (held outside the mining node structure).
Previous report
For the three months ended March 31, 2026, Loss on market price of stablecoins and digital assets from discontinued operations totaled $126,716, consisting of: (a) $127,686 loss attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $970 gain arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Previous report
For the three months ended March 31, 2025, Loss on market price of stablecoins and digital assets from discontinued operations totaled $465,256, consisting of: (a) $486,788 loss attributable to Filecoins held in MFH Tech’s Filecoin mining node accounts; and (b) $21,532 gain arising from fair value adjustments to FIL-denominated receivables and payables associated with the Filecoin mining business.
Previous report
Loss from continuing operations was $1,086,653 for the three months ended March 31, 2026, compared with loss from continuing operations of $ $703,762 for the three months ended March 31, 2025.
Previous report
Net cash used in operating activities was $803,233 for the three months ended March 31, 2026, compared to $800,059 for the three months ended March 31, 2024.
Reworded paragraphs (51)
Previous wording
This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations for the three months ended March 31, 2025 and 2026. This section should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this report. See Unaudited Condensed Consolidated Financial Statements of Chaince Digital Holdings Inc. (formerly known as Mercurity Fintech Holding Inc.) as of December 31, 2025 and March 31, 2026, and for the three months ended March 31, 2025 and 2026. We also recommend that you read our management’s discussion and analysis and our audited consolidated financial statements for fiscal year ended December 31, 2025, and the notes thereto, which appear in our Annual Report on Form 10-K for the year ended December 31, 2025, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or the SEC, on March 26, 2026.
Current wording
This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025. This section should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this report. See Unaudited Condensed Consolidated Financial Statements of Chaince Digital Holdings Inc. (formerly known as Mercurity Fintech Holding Inc.) as of December 31, 2026 and June 30, 2025, and for the three and six months ended June 30, 2026 and 2025. We also recommend that you read our management’s discussion and analysis and our audited consolidated financial statements for the fiscal year ended December 31, 2025, and the notes thereto, which appear in our Annual Report on Form 10-K for the year ended December 31, 2025, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or the SEC, on March 26, 2026.
Previous wording
During the three months ended March 31, 2026, the Company continued to focus on its financial services and advisory businesses as its primary line of business. No material change occurred in the Company’s principal business strategy during the quarter.
Current wording
During the six months ended June 30, 2026, the Company continued to focus on its financial services and advisory businesses as its primary line of business. No material change occurred in the Company’s principal business strategy during the period.
Previous wording
During the first quarter of 2026, the Company’s overall business operations remained consistent with the strategic direction established in 2025. Management continued to focus on expanding the Company’s financial services platform, developing its client base, and increasing revenue contribution from both IPO-related and non-IPO-related financial services engagements.
Current wording
For the six months ended June 30, 2026, the Company’s overall business operations remained consistent with the strategic direction established in 2025. Management continued to focus on expanding the Company’s financial services platform, developing its client base, and increasing revenue contribution from both IPO-related and non-IPO-related financial services engagements.
Previous wording
As of May 11, 2026, the Company had a total of 79,443,800 ordinary shares issued and outstanding, of which 65,100,254 ordinary shares held by non-affiliates. The aggregate market value of the registrant’s ordinary shares held by non-affiliates (or “Public Float”) as of May 11, 2026 was $391,903,529. This amount is based on the closing price of the ordinary shares on Nasdaq of $6.02 per share on that date. Ordinary shares held by executive officers, directors and 10% or greater stockholders have been excluded since such persons may be deemed affiliates.
Current wording
As of August 11, 2026, the Company had a total of 110,003,800 ordinary shares issued and outstanding, including 109,993,800 ordinary shares held by non-affiliates. The aggregate market value of the registrant’s ordinary shares held by non-affiliates (or “Public Float”) as of August 11, 2026 was $337,680,966. This amount is based on the closing price of the ordinary shares on Nasdaq of $3.07 per share on August 11, 2026. Ordinary shares held by executive officers, directors and 10% or greater stockholders have been excluded since such persons may be deemed affiliates.
Previous wording
Set forth below is an update of the Company’s business lines as presented in the accompanying condensed consolidated financial statements for the three months ended March 31, 2026.
Current wording
Set forth below is an update of the Company’s business lines as presented in the accompanying condensed consolidated financial statements for the six months ended June 30, 2026.
Previous wording
On December 12, 2025, the Company entered into a comprehensive agreement pursuant to which substantially all Filecoin mining equipment was sold to a third party. Under the terms of that agreement, the Company leased back the equipment through April 30, 2026 solely to allow existing Filecoin mining nodes to naturally expire. Upon expiration of the nodes, the Company expects to complete the wind-down of the remaining Filecoin mining activities and settle any remaining obligations related to such business.
Current wording
On December 12, 2025, the Company entered into a comprehensive agreement pursuant to which substantially all Filecoin mining equipment was sold to a third party. Under the terms of that agreement, the Company leased back the equipment through April 30, 2026 solely to allow existing Filecoin mining nodes to naturally expire. All of the mining nodes had ceased operations by June 30, 2026.
Previous wording
Comparison of Results of Operations for the three months ended March 31, 2026 and 2025
Current wording
Comparison of Results of Operations for the three and six months ended June 30, 2026 and 2025
Previous wording
The following summary of the audited consolidated financial data for the periods and as of the dates indicated is qualified by reference to, and should be read in conjunction with, our audited consolidated financial statements and related notes. Our historical results do not necessarily indicate our results to be expected for any future period.
Current wording
The following summary of the unaudited consolidated financial data for the periods and as of the dates indicated is qualified by reference to, and should be read in conjunction with, our unaudited consolidated financial statements and related notes. Our historical results do not necessarily indicate our results to be expected for any future period.
Previous wording
For the three months ended March 31, 2026 and 2025, total revenue from financial services and advisory businesses was $507,546 and $25,065, respectively, representing an increase of $482,481, or 1924.92%.
Current wording
For the three months ended June 30, 2026 and 2025, total revenue from financial services and advisory businesses was $463,206 and $233,504, respectively, representing an increase of $229,702, or 98.37%.
Previous wording
For the three months ended March 31, 2026 and 2025, total cost of revenue from financial services and advisory businesses was $289,521 and $67,412, respectively, representing an increase of $222,109, or 329.48%.
Current wording
For the three months ended June 30, 2026 and 2025, total cost of revenue from financial services and advisory businesses was $240,651 and $93,139, respectively, representing an increase of $147,512, or 158.38%.
Previous wording
The increase in cost of revenue was primarily attributable to the expansion of revenue-generating activities during 2026. As disclosed above, total revenue increased by $482,481 quarter-over-quarter, driven by growth in IPO-related financial advisory services, industry advisory and consulting services, and transaction execution and brokerage services engagements. The increase in cost of revenue is consistent with the higher level of transaction volume and consulting activity during the period.
Current wording
The increase in cost of revenue was primarily attributable to the expansion of revenue-generating activities during 2026. As disclosed above, total revenue increased by $712,183 for the six months ended June 30, 2026, compared with the six months ended June 30, 2025, driven by growth in IPO-related financial advisory services, industry advisory and consulting services, and transaction execution and brokerage services engagements. The increase in cost of revenue is consistent with the higher level of transaction volume and consulting activity during the period.
Previous wording
For the three months ended March 31, 2026 and 2025, gross profit/(loss) from financial services and advisory businesses was $218,025 and $(42,347), respectively. The Company’s results improved by $260,372, reflecting a change from gross loss in the prior-year period to gross profit in the current period.
Current wording
For the three months ended June 30, 2026 and 2025, gross profit from financial services and advisory businesses was $222,555 and $140,365, respectively. The Company’s results improved by $82,190, or 58.55%.
Previous wording
Gross profit/(loss) margin was 42.96% for the three months ended March 31, 2026, compared to (168.95%) for the three months ended March 31, 2025. This represented an improvement of 211.91 percentage points, primarily due to increased revenue scale and improved operating leverage in the Company’s financial services and advisory businesses.
Current wording
Gross profit margin was 45.39% for the six months ended June 30, 2026, compared to 37.91% for the six months ended June 30, 2025. This represented an increase of 7.48 percentage points, primarily due to increased revenue scale and improved operating leverage in the Company’s financial services and advisory businesses.
Previous wording
The sales and marketing expenses for the three months ended March 31, 2026 amounted to $21,148, all of which attributed to labor costs of sales personnel.
Current wording
The sales and marketing expenses for the three months ended June 30, 2026 and 2025 amounted to $12,918 and $29,065, respectively, all of which were attributable to labor costs of sales personnel.
Previous wording
The sales and marketing expenses for the three months ended March 31, 2025 amounted to $29,066, all of which attributed to labor costs of sales personnel.
Current wording
The sales and marketing expenses for the six months ended June 30, 2026 and 2025 amounted to $34,066 and $58,131, respectively, all of which were attributable to labor costs of sales personnel.
Previous wording
Due to the expansion of the Company’s financial services and advisory businesses team, all employee salaries and benefits, professional expenses, and office and other miscellaneous expenses have increased significantly compared to the same period in the previous year.
Current wording
Due to the expansion of the Company’s financial services and advisory business teams, all employee salaries and benefits, professional expenses, and office and other miscellaneous expenses have increased significantly compared to the same period in the previous year.
Previous wording
For the three months ended March 31, 2026, research and development expenses were $83,542, compared to nil for the three months ended March 31, 2025. The increase was primarily attributable to equity-based compensation recognized in connection with system development services provided under the Comprehensive Technology Services Agreement entered into on July 23, 2025 with Palantir Innovation Technologies Corporation.
Current wording
For the three and six months ended June 30, 2026, research and development expenses were $83,542 and $167,084, respectively, compared to nil for both the three and six months ended June 30, 2025. The increase was primarily attributable to equity-based compensation recognized in connection with system development services provided under the Comprehensive Technology Services Agreement entered into on July 23, 2025 with Palantir Innovation Technologies Corporation.
Previous wording
The equity awards granted under the agreement have a three-year service period. Accordingly, the total grant-date fair value of the shares issued is being recognized as expense on a straight-line basis over the requisite service period. During the three months ended March 31, 2026, the Company recognized $83,542 of share-based compensation expense attributable to development-related services, which has been classified within research and development expenses in the consolidated statements of operations.
Current wording
The equity awards granted under the agreement have a three-year service period. Accordingly, the total grant-date fair value of the shares issued is being recognized as an expense on a straight-line basis over the requisite service period. During the three and six months ended June 30, 2026, the Company recognized $83,542 and $167,084, respectively, of share-based compensation expense attributable to development-related services, which has been classified within research and development expenses in the consolidated statements of operations.
Previous wording
For the three months ended March 31, 2026, loss on market price of stablecoins and digital assets from continuing operations totaled $278,370, consisting of: (a) loss on market price of Bitcoin of $193,430; (b) gain on market price of USD Coin of $290; (c) loss on market price of Solana (SOL) of $41,380; and (d) loss on market price of Filecoin (held outside the mining node structure) of $43,850.
Current wording
For the three months ended June 30, 2026, loss on market price of stablecoins and digital assets from continuing operations totaled $110,597, consisting of: (a) loss on market price of Bitcoin of $88,694; (b) loss on market price of USD Coin of $1,959; (c) loss on market price of Solana (SOL) of $7,900; (d) loss on market price of Filecoin (held outside the mining node structure) of $11,690; and (e) loss on market price of Tether USD of $354.
Previous wording
The Company’s interest income/(expenses), net consist of (i) convertible notes interest costs, and (ii) interest income from cash deposits and short-term investments.
Current wording
The Company’s interest income/(expenses), net consists of (i) convertible note interest costs, and (ii) interest income from cash deposits and short-term investments.
Previous wording
The Company’s interest income/(expenses), net for the three months ended March 31, 2026 amounted to $251,913, consisted of nil in convertible notes interest costs, and positive $251,913 in interest income from cash deposits and short-term investments.
Current wording
The Company’s interest income/(expenses), net for the three and six months ended June 30, 2026 amounted to $273,978 and $525,891, respectively, and consisted of nil in convertible notes interest costs, and positive $273,978 and $525,891, respectively, in interest income from cash deposits and short-term investments.
Previous wording
The Company’s interest income/(expenses), net for the three months ended March 31, 2025 amounted to $51,181, consisted of negative $60,137 in convertible notes interest costs, and positive $111,318 in interest income from cash deposits and short-term investments and providing loans to external parties.
Current wording
The Company’s interest income/(expenses), net for the three months ended June 30, 2025 amounted to $120,250, and consisted of negative $43,630 in convertible note interest costs, and positive $163,880 in interest income from cash deposits and short-term investments and providing loans to external parties.
Previous wording
The gain from market price of short-term investment for the three months ended March 31, 2026 and 2025 consists primarily of the net gain from the market price changes of the common stocks and ETFs held by the Company.
Current wording
The gain from market price of short-term investment for the three and six months ended June 30, 2026 and 2025 consists primarily of the net gain from the market price changes of the common stocks and ETFs held by the Company.
Previous wording
Loss before income taxes was $ $1,119,362 for the three months ended March 31, 2026, compared with loss before income taxes of $799,072 for the three months ended March 31, 2025.
Current wording
Loss before income taxes was $1,152,511 for the three months ended June 30, 2026, compared with loss before income taxes of $840,206 for the three months ended June 30, 2025.
Previous wording
We recorded income tax benefits of $32,709 for the three months ended March 31, 2026 and income tax benefits of $95,310 for the three months ended March 31, 2025.
Current wording
We recorded income tax benefits of $103,779 for the three months ended June 30, 2026 and income tax benefits of $58,786 for the three months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2026, the Company recognized a loss from discontinued operations of $ 265,791, compared to $597,716 for the three months ended March 31, 2025.
Current wording
For the three months ended June 30, 2026, the Company recognized a loss from discontinued operations of $56,268, compared to $764,932 for the three months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2026, revenue from the Filecoin mining operations was $37,727, compared to $116,334 in 2025. Revenue fluctuations were primarily driven by changes in mining output and market prices of FIL at the time rewards were received.
Current wording
For the three months ended June 30, 2026, revenue from the Filecoin mining operations was $11,275, compared to $91,675 in 2025. Revenue fluctuations were primarily driven by changes in mining output and market prices of FIL at the time rewards were received.
Previous wording
Cost of revenue for the three months ended March 31, 2026 was $175,668, primarily consisting of mining equipment depreciation, facility lease and electricity costs, software-related expenses, and other operational costs necessary to maintain node operations. The mining business continued to generate negative gross margins during the year.
Current wording
Cost of revenue for the three months ended June 30, 2026 was $93,994, primarily consisting of mining equipment depreciation, facility lease and electricity costs, software-related expenses, and other operational costs necessary to maintain node operations compared to $246,428 in 2025. The mining business continued to generate negative gross margins during the period.
Previous wording
Following the Board’s approval in December 2025, the Company ceased making new investments in the mining business and initiated an orderly wind-down. The Company expects the remaining mining nodes to expire by April 30, 2026, at which point it will fully exit the Filecoin mining operations.
Current wording
Following the Board’s approval in December 2025, the Company ceased making new investments in the Filecoin mining business and initiated an orderly wind-down of the related operations. By June 30, 2026, substantially all of the related mining nodes had expired and the majority of the pledged FIL had been released, with a substantial portion of the released FIL subsequently sold and converted into cash. A limited amount of FIL remained pledged in connection with certain remaining nodes as of June 30, 2026 and is expected to be released by the end of 2026. The Company does not intend to make additional investments in or resume its Filecoin mining operations.
Previous wording
As a result of the foregoing factors, we recorded a net loss of $1,352,444 for the three months ended March 31, 2026, as compared to a net loss of $1,301,478 for the three months ended March 31, 2025.
Current wording
As a result of the foregoing factors, we recorded a net loss of $1,105,000 for the three months ended June 30, 2026, as compared to a net loss of $1,546,352 for the three months ended June 30, 2025.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $36,718,776, stablecoins (USD Coins) of $2,893,518, digital assets of $843,968, and total equity of $46,964,404. The increase in cash during 2026 was primarily driven by equity financing activities, partially offset by cash used in operating and investing activities.
Current wording
As of June 30, 2026, we had cash and cash equivalents of $30,973,382, stablecoins of $562,481, digital assets of $738,653, and total equity of $46,767,178. The decrease in cash during 2026 was primarily driven by outflows from investing activities, partially offset by cash generated from operating and financing activities.
Previous wording
Cash Flows for the three months ended March 31, 2026, compared to the three months ended March 31, 2026
Current wording
Cash Flows for the six months ended June 30, 2026, compared to the six months ended June 30, 2025
Previous wording
For the three months ended March 31, 2026, net increase in cash and cash equivalents was $2,898,707, compared to $1,929,628 for the three months ended March 31, 2025. Cash and cash equivalents were $36,718,776 as of March 31, 2026, compared to $25,938,959 as of March 31, 2025. The increase in cash during the three months ended March 31, 2026 was primarily driven by financing activities, partially offset by cash used in operating and investing activities.
Current wording
For the six months ended June 30, 2026, the net decrease in cash and cash equivalents amounted to $2,846,687, compared to a net increase of $1,243,420 for the six months ended June 30, 2025. Cash and cash equivalents were $30,973,382 as of June 30, 2026, compared to $25,252,751 as of June 30, 2025. The decrease in cash during the six months ended June 30, 2026 was primarily driven by outflows from investing activities, partially offset by cash generated from operating and financing activities.
Previous wording
For the three months ended March 31, 2025, our net cash used in operating activities was $800,059, reflecting a combination of net cash used in continuing operations of $740,278 and net cash used in discontinued operations of $59,781.
Current wording
For the six months ended June 30, 2026, our net cash provided by operating activities was $98,628, reflecting a combination of net cash provided by continuing operations of $313,463 and net cash used in discontinued operations of $214,835.
Previous wording
The net cash used in continuing operations was primarily attributable to (i) our net loss from continuing operations of $1,086,653, (ii) an adjustment of deducted non-cash profit and loss items of a positive net amount of $747,617, mainly provision for doubtful accounts, inclusive of depreciation, loss from selling short-term investments, exchange gains and losses, loss on market price of short-term investment, Loss on market price of stablecoins and digital assets, loss on share-based payment liabilities, interest income/(expenses), stock-based compensations, gain from debt forgiveness, non-cash revenue or gain, non-cash expenses, gain from deregistration of subsidiaries, and other income or loss, (iii) changes in working capital that negatively affected the cash flow from operating activities, primarily including: a decrease of $27,402 in clearing deposits, a decrease of $134,831 in accounts receivable, a decrease of $13,048 in prepaid expenses and other current assets, a decrease of $11,778 in accounts payable, a decrease of $215,384 in advance from customers and deferred revenues, an increase of $69,037 in operating lease liabilities, and a decrease of $318,292 in accrued expenses and other current liabilities, and (iv) Changes in non-current assets and liabilities negatively affected cash flows from operating activities, primarily as a result of a decrease in right-of-use assets of $80,232, an increase in deferred tax assets of $32,709, partially offset by a decrease in operating lease liabilities of $87,667.
Current wording
The net cash provided by continuing operations was primarily attributable to (i) our net loss from continuing operations of $2,135,385, (ii) an adjustment of deducted non-cash profit and loss items of a positive net amount of $1,135,353, mainly provision for doubtful accounts, inclusive of depreciation, loss from selling short-term investments, exchange gains and losses, loss on market price of short-term investment, loss on market price of stablecoins and digital assets, loss on share-based payment liabilities, interest income/(expenses), share-based compensations, gain from debt forgiveness, non-cash revenue or gain, non-cash expenses, gain from deregistration of subsidiaries, and other income or loss, (iii) changes in working capital that positively affected the cash flow from operating activities, primarily including: a decrease of $42,471 in clearing deposits, a decrease of $119,831 in accounts receivable, a decrease of $1,509,409 in other receivable, an increase of $44,621 in prepaid expenses and other current assets, an increase of $215,991 in accounts payable, a decrease of $83,717 in advance from customers and deferred revenues, an increase of $44,137 in other payables, and a decrease of $412,441 in accrued expenses and other current liabilities, and (iv) changes in non-current assets and liabilities negatively affected cash flows from operating activities, primarily as a result of a decrease in right-of-use assets of $160,464, an increase in deferred tax assets of $136,488, partially offset by a decrease in operating lease liabilities of $101,541.
Previous wording
Although the Company continued to generate advisory revenue growth in the three months ended March 31, 2026, operating cash flow remained negative due to expansion-related working capital requirements and the continued wind-down of the mining operations.
Current wording
Operating cash flow remained positive as the company continued to generate advisory revenue growth in the six months ended June 30, 2026.
Previous wording
For the three months ended March 31, 2026, our net cash used in operating activities was $803,233, reflecting a combination of net cash used in continuing operations of $680,316 and net cash used in discontinued operations of $122,917.
Current wording
For the six months ended June 30, 2025, our net cash used in operating activities was $1,328,938, reflecting a combination of net cash used in continuing operations of $1,031,751 and net cash used in discontinued operations of $297,187.
Previous wording
The net cash used in continuing operations was primarily attributable to: (i) our net loss from continuing operations of $703,762; (ii) an adjustment of deducted non-cash profit and loss items of a positive net amount of $288,671, mainly inclusive of provision for doubtful accounts, depreciation, gain from selling short-term investments, exchange gains and losses, gain from market price of short-term investment, Loss on market price of stablecoins and digital assets, interest income/(expenses), non-cash revenue or gain, non-cash expenses, and other income or loss; (iii) changes in working capital that negatively affected the cash flow from operating activities, primarily including: an increase of $57,795 in prepaid expenses and other current assets, an increase of $32,517 in accounts payable, a decrease of $10,065 in advance from customers and deferred revenues, a decrease of $93,056 in operating lease liabilities, and a decrease of $339,808 in accrued expenses and other current liabilities; and (iv) changes in non-current assets and liabilities that positively affected the cash flow from operating activities, primarily including: a decrease of $238,330 in right-of-use assets, an increase of $95,310 in deferred tax assets.
Current wording
The net cash used in continuing operations was primarily attributable to: (i) our net loss from continuing operations of $1,485,182; (ii) an adjustment of deducted non-cash profit and loss items of a positive net amount of $563,499, mainly inclusive of provision for doubtful accounts, depreciation, gain from selling short-term investments, exchange gains and losses, gain from market price of short-term investment, Loss on market price of stablecoins and digital assets, interest income/(expenses), non-cash revenue or gain, non-cash expenses, and other income or loss; (iii) changes in working capital that positively affected the cash flow from operating activities, primarily including: an increase of $100,445 in clearing deposits, an increase of $118,876 in accounts receivable, a decrease of $202,703 in other receivable, a decrease of $172,081 in prepaid expenses and other current assets, an increase of $285,307 in advance from customers and deferred revenues, an increase of $258,740 in other payables and a decrease of $282,926 in accrued expenses and other current liabilities; and (iv) changes in non-current assets and liabilities that negatively affected the cash flow from operating activities, primarily including: a decrease of $158,887 in right-of-use assets, a decrease of $154,096 in deferred tax assets and a decrease of $187,281 in lease liabilities.
Previous wording
Quarter-over-quarter, the improvement in operating cash flow of continuing operations in 2026 compared to 2025 was primarily attributable to reduced working capital outflows and changes in operating lease liabilities.
Current wording
The improvement in operating cash flow of continuing operations in 2026 compared to 2025 was primarily attributable to reduced working capital outflows and changes in other receivables.
Previous wording
Net cash used in investing activities was $137,164 for the three months ended March 31, 2026, compared to net cash used in investing activities of $937,233 for the three months ended March 31, 2025.
Current wording
Net cash used in investing activities was $6,784,565 for the six months ended June 30, 2026, compared to net cash used in investing activities of $1,094,595 for the six months ended June 30, 2025.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Revenue for the six months ended June 30, 2026 was diversified across multiple service categories, as follows:
Current report — wording carried from elsewhere
Revenue for the six months ended June 30, 2025 was primarily concentrated in:
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, revenue from the Filecoin mining operations was $49,002, compared to $208,008 in 2025. Revenue fluctuations were primarily driven by changes in mining output and market prices of FIL at the time rewards were received.
Current report — wording carried from elsewhere
Cost of revenue for the six months ended June 30, 2026 was $269,662, primarily consisting of mining equipment depreciation, facility lease and electricity costs, software-related expenses, and other operational costs necessary to maintain node operations, compared to $495,222 in 2025. The mining business continued to generate negative gross margins during the period.
Current report — wording carried from elsewhere
As a result of the foregoing factors, we recorded a net loss of $2,457,444 for the six months ended June 30, 2026, as compared to a net loss of $2,847,830 for the six months ended June 30, 2025.