Smart Chain Group (ICG.O), a specialized ASIC chip designer for cryptocurrency mining, achieved 785.1% YoY growth in Q2 2024 by launching self-developed chips and acquiring a mining hardware brand.
Unlike traditional blockchain chip firms, Smart Chain pivoted to altcoin markets (e.g., Litecoin, Dogecoin), avoiding competition with Bitcoin/ETH miners. Its 61.9% gross margin (H1 2024) far exceeds industry averages.
Key Strategies:
- Global Expansion: Post-2023 Nasdaq IPO, it established R&D/operations centers in Singapore, expanding from chips to mining hardware.
- Crypto Asset Allocation: Purchased $8.3M in Ethereum as a hedge against market volatility.
- Acquisitions: Acquired "Goldshell" (a top WEB3 mining hardware brand) to strengthen downstream sales.
1. Engineer-Led Innovation: Capturing Altcoin Niches
Founded in 2017 by Ding Qiang (ex-Infineon engineer), Smart Chain targeted altcoin mining chips—lower competition and technical thresholds vs. Bitcoin ASICs.
Milestones:
- 2018: First ASIC chips for Scrypt/Cryptonight V2 algorithms (used in Litecoin/Dogecoin mining).
- 2021: Revenue peaked at $86.9M (+1057% YoY), with 82% gross margins, leveraging the crypto boom.
- 2024: Launched 3 new ASIC chips, driving Q2 revenue to $16.9M (+785% YoY).
👉 How altcoin ASICs differ from Bitcoin miners
2. Surviving Volatility: The "Hunter" Mindset
Altcoin markets fluctuate wildly. Smart Chain mitigates risks by:
- Rapid R&D: Chips designed in 5–8 months (vs. industry’s 10–14 months) via its "Xihe" platform.
- Diversification: 71.7% of Q2 2024 revenue came from overseas (vs. 0% pre-2023), aided by Goldshell’s global distribution.
Crypto Winter Resilience:
- 2023 revenue crashed 82.6% to $11.3M amid crypto price drops.
- 2024 rebound: Gross margin recovered to 61.9% (H1).
3. Long-Term Plays: Blockchain Software & ETFs
- Ethereum ETF Approval: SEC’s 2024 ETF approvals boosted crypto’s legitimacy, benefiting Smart Chain’s以太坊 holdings ($832.4M current value).
- Blockchain Software: Developing tools for WEB3 applications to diversify beyond hardware.
FAQ
Q: Why focus on altcoins?
A: Lower barriers to entry vs. saturated Bitcoin/ETH markets.
Q: Risks of altcoin ASICs?
A: Niche coins can collapse quickly—Smart Chain speeds R&D to capitalize on short windows.
Q: Ethereum investment rationale?
A: Hedge against hardware sales volatility; ETFs increased institutional adoption.
Disclaimer: This article is informational only. Cryptocurrency investments carry high risk.
👉 Explore crypto mining trends
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- **Keywords**: ASIC chips, altcoin mining, cryptocurrency ETFs, gross margin, Smart Chain Group, WEB3 hardware.