Encryption Industry Earnings Season: Multiple Institutions Present Mid-Year Reports for 2025

The earnings season for the encryption industry has arrived, with several well-known institutions releasing their mid-term financial reports for 2025. From these reports, it is evident that the industry is undergoing a transformation, shifting from a single source of income to diversified assets and integrated financial services. Some institutions have achieved significant profit growth through rising asset valuations, while others are seeking new development directions in the face of slowing core business growth. This article will summarize the latest financial conditions and strategic trends of several representative institutions.

Earn huge profits by relying on Bitcoin, plan to continue increasing holdings.

A certain technology company achieved revenue of $14.03 billion in the second quarter, with a year-on-year growth of over 7000%. The annual revenue is expected to reach $34 billion, and the annual earnings per share (EPS) is expected to rise to $80.

The significant growth in the company's quarterly revenue primarily comes from unrealized fair value gains on Bitcoin assets, amounting to $14 billion. In contrast, the company's traditional software business revenue was only $11.45 million, accounting for less than 1% of total revenue.

In terms of profitability, the company's net profit for the second quarter reached $10.02 billion, a sharp contrast to the loss from the same period last year. It is expected that the net profit for the entire year of 2025 will reach $24 billion.

As of the end of July, the company held 628,791 Bitcoins, with an increase of 88,109 in the second quarter. The total holding cost is $46.07 billion, with an average cost of $73,277 per Bitcoin. The year-to-date Bitcoin return is 25%, exceeding the original target, and the new target has been raised to 30%. The company also plans to raise $4.2 billion through the issuance of preferred shares to continue increasing its Bitcoin holdings.

The core business is facing challenges, and investment returns have become the main source of profit.

A certain cryptocurrency exchange platform's total revenue in the second quarter of 2025 was $1.497 billion, a decrease of 26% quarter-on-quarter. Of this, trading revenue was $764 million, a decrease of 39% quarter-on-quarter; subscription and service revenue was $656 million, a decrease of 6% quarter-on-quarter. The platform attributed the revenue decline to reduced market volatility, adjustments in stablecoin trading pricing strategies, and a decrease in overall trading activity. The total trading volume in the second quarter was $237 billion, a decrease of 40% quarter-on-quarter.

Despite this, the platform's net profit for the second quarter still reached $1.429 billion, far exceeding the $36 million from the same period last year. This was mainly due to a $1.5 billion gain from certain investments and an unrealized appreciation of $362 million from the encryption investment portfolio. However, a previous user data breach incident resulted in a loss of $308 million, driving total operating expenses up to $1.5 billion. Excluding investment gains, the adjusted net income was only $33 million, indicating weak growth in the core trading business.

Faced with this dilemma, the platform is actively promoting a strategic transformation. It plans to expand its trading categories, including tokenized real-world assets, stocks, derivatives, prediction markets, and early token sales, with the goal of creating an "all-in-one exchange" that enables on-chain trading of all assets.

Quarterly net profit of 4.9 billion dollars, significant increase in U.S. Treasury holdings

As of the second quarter of 2025, a certain stablecoin issuing institution has total assets of $162.575 billion, exceeding liabilities of $157.108 billion, achieving excess reserves of $5.467 billion. Its stablecoin circulation exceeds $157 billion, increasing by $20 billion year-to-date.

In terms of asset composition, the institution holds over $127 billion in U.S. Treasury bonds (including $105.5 billion held directly and $21.3 billion held indirectly), an increase of about $8 billion from the first quarter, making it the 18th largest holder of U.S. Treasury bonds in the world. Additionally, it holds $8.9 billion in Bitcoin and $8.7 billion in precious metals.

The institution's net profit in the second quarter was approximately $4.9 billion, significantly higher than the $830 million in the first quarter. The cumulative net profit for the year has reached $5.73 billion, of which $3.1 billion is from recurring income and $2.6 billion comes from the market value growth of Bitcoin and gold.

Overall, the institution has demonstrated strong asset growth capability and profitability in this quarter, with diversified asset allocation providing resilience to its profit composition.

Revenue approached $1 billion, encryption business drove profits to double.

A certain fintech company holds $4.2 billion in cash and cash equivalents as of the end of the second quarter of 2025, providing ample financial support for global expansion and testing new businesses.

The company achieved a revenue of $989 million this quarter, a year-on-year increase of 45%; net profit reached $386 million, doubling year-on-year and setting a historical high. Adjusted EBITDA reached $549 million, with a profit margin rising to 56%. The growth was mainly driven by encryption trading and options trading. Options trading revenue was $265 million, a year-on-year increase of 46%; encryption trading revenue was $160 million, a year-on-year increase of 98%; stock trading revenue was $66 million, a year-on-year increase of 65%.

In terms of user scale and asset accumulation, the platform has reached 26.5 million funding accounts, a year-on-year increase of 10%; total platform assets have surpassed 279 billion USD, nearly doubling; active investment accounts number 27.4 million, also a year-on-year increase of 10%; high-value users have increased by 76% to 3.5 million. The average revenue per user has reached 151 USD, a year-on-year increase of 34%, reflecting enhanced user monetization capability.

On a strategic level, the company has made significant moves in the encryption business, including completing the acquisition of a European exchange, obtaining multiple encryption compliance licenses, launching encryption services in Europe, introducing stock token products, and opening encryption staking functions, among others. In addition, the company is gradually building a financial supermarket, with significant progress in areas such as digital investment advisory, retirement accounts, and credit cards.

Profit decline, accelerate diversification layout

A certain encryption trading platform continues to promote multi-asset trading and global expansion in the second quarter of 2025, but due to the slowdown in market trading activity, some indicators have declined month-on-month.

In this quarter, the platform achieved revenue of $412 million, a year-on-year increase of 18%, but a quarter-on-quarter decline. Adjusted EBITDA was $80 million, significantly down from $187 million in the previous quarter. In terms of operational data, the platform has approximately 15 million global customers, with a total trading volume of $186.8 billion in the second quarter, a quarter-on-quarter decline of 10.5% and a year-on-year increase of 19%; the number of funded accounts has increased to 4.4 million, a year-on-year increase of 37%; and the custody assets reached $43.2 billion, a year-on-year increase of 47%.

In the future, the platform will continue to promote global business, including obtaining new licenses, expanding local funding channels, upgrading multi-asset experiences, and launching innovative products such as international stocks, tokenized stocks, and debit cards.

It is worth noting that the platform is seeking to raise $500 million at a valuation of $15 billion and plans to go public in 2026. Analysts believe that the platform is at the forefront of the industry in terms of user quality and trading activity, reducing its reliance on spot transaction fees by expanding into new businesses, thereby enhancing its risk resistance. Against the backdrop of tightening regulation, the platform has obtained compliance licenses in multiple regions, giving it an advantage in compliance, security, and fiat gateway services.

Income doubled year-on-year, Bitcoin production increased significantly.

A certain Bitcoin mining company achieved total revenue of $153 million in the second quarter of 2025, more than doubling year-on-year, primarily driven by its Bitcoin mining operations, which contributed approximately $141 million in revenue, up over 150% year-on-year. With the increase in Bitcoin prices and capacity expansion, the company produced 1,426 BTC during the quarter, a year-on-year increase of 69%.

Affected by the halving event and the rise in global computing power, the company's average mining cost per Bitcoin (excluding depreciation) has risen to $48,992, up 93% year-on-year, but still lower than the average Bitcoin selling price during the same period (approximately $98,800). The company is promoting diversified applications of power resources and gradually transforming into "a future computing power demand infrastructure platform centered on Bitcoin."

In terms of profit, the company recorded a net profit of $219.5 million, far exceeding the same period last year; the adjusted EBITDA reached $495.3 million, demonstrating strong cash generation capability of the core business.

As of the end of the quarter, the company holds 19,273 BTC (worth approximately $2.1 billion) and $255.4 million in unrestricted cash, providing ample financial support for future expansion and to respond to market fluctuations.