BITFIRE GROUP (01611) Mid-term Performance: Impairment of cryptographic assets dragged down revenue, gross profit margin soared by 141.8%, and asset management scale doubled to HK$2.295 billion.

BITFIRE GROUP (01611) disclosed its mid-year performance for 2026, with the impact of fluctuations in the fair value of cryptocurrency assets, increased research and development expenses, and administrative expenses leading to a widening of the net loss attributable to the company's shareholders, with a rise in loss per share compared to the previous period. However, the mid-year performance report also highlighted several bright spots: the company's gross profit margin significantly improved by 141.8% year-on-year to 1.4%, indicating a clear recovery in profitability; cash net increased by 114.2% year-on-year, further strengthening the financial cash flow safety cushion. On the business front, there was an overall acceleration, with over-the-counter trading, asset management, and trust custody customer numbers and management scale achieving high double-digit monthly compound growth, steady increase in Japanese compliant exchange users, and resilience in custody assets against market fluctuations. At the same time, the company completed the acquisition of a core investment research trading system, launched the first batch of compliant BTC flagship asset management products in Hong Kong, and empowered its macro strategic layout by bringing on board a chief economist. The asset management scale continues to expand, with short-term pressure from industry trends, but a clear logic for business transformation and ecological growth in the medium to long term.