The9 Limited (NCTY): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of The9 Limited (NCTY) as it juggles Bitcoin mining with a major pivot into Web3 gaming, and honestly, it looks messy on the surface. But after two decades analyzing these shifts, I see a clear, dual-engine model here: one side is securing tangible upside from their 285 BTC treasury, while the other is anchored by a China mobile game joint venture committed to generating at least RMB 900 million in 2025 revenue. Below, we dissect the full Business Model Canvas to show you exactly how these disparate parts-from mining CAPEX to GameFi partnerships-are supposed to connect and drive value for NCTY shareholders.

The9 Limited (NCTY) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep The9 Limited's diverse operations running, especially as you map out the capital structure for late 2025. Here's the breakdown of the key partners, grounded in the numbers we've seen.

Yield Guild Games (YGG) for Web3 gamer onboarding

The strategic partnership with Yield Guild Games (YGG) kicked off on August 1, 2025, to accelerate adoption of the9bit platform. YGG brings a massive community structure to the table, which is key for onboarding new users into your Web3 gaming hub.

• YGG ecosystem includes 105 Onchain Guilds.
• YGG partners with over 100 projects spanning games and infrastructure.
• The collaboration targets onboarding 'hundreds of thousands of highly engaged players.'
• The9Bit sponsored the YGG Play Summit 2025 in Manila.

Cryptocurrency investment funds (e.g., Elune Capital) for GameFi funding

The capital injection from funds like Elune Capital was a major move in March 2025 to fund the global GameFi platform. This partnership sets the stage for future token economics.

The total strategic investment secured was US$8 million from Elune Capital, Fine Vision Fund, and Bripheno Pte. Ltd.. To support the GameFi coin market and exchange operations, The9 plans to issue 10% of its shares over the next three years.

Zhejiang Huanyu Network Technology for China mobile game JV

Your joint venture (JV) with Zhejiang Huanyu Network Technology, established in September 2024, is focused on operating the new MIR game, MIR M, where The9 Limited holds a 51% stake. Huanyu, holding 49%, increased its financial commitment for the JV's 2025 performance significantly after the initial agreement.

The JV is also set for committed annual growth of at least 30% in game revenues and profit for both 2026 and 2027.

Global data center/hosting providers for crypto mining operations

While older agreements, these show the historical structure for scaling your mining hash rate globally. The current industry trend in 2025 sees miners moving to wholesale colocation facilities, often with initial deployments in the 5-20 MW range.

Past capacity agreements include:

• 15MW of electric capacity reserved by BitRiver in Russia under a 2-year initial term.
• 32MW of capacity leased from Compute North in the US, planned to run 10,000 Bitmain S19j miners starting Q2 2022.
• An additional 14,000 miners planned for hosting in Canada starting December 2021.

Mining hardware suppliers (e.g., Bitmain) for machine acquisition

Your historical scale-up involved direct purchases from major suppliers like Bitmain. This established a significant operational base for your Bitcoin mining business.

One journalist estimated the cost for the 24,000 Bitmain miners to be close to $200 million.

The9 Limited (NCTY) - Canvas Business Model: Key Activities

You're looking at the core engine driving The9 Limited (NCTY) operations as of late 2025. This isn't just about running old businesses; it's about aggressively pushing into Web3 gaming and securing high-potential mobile assets.

Operating the global GameFi platform, the9bit

The primary activity here is scaling the Web3.5 GameFi platform, the9bit. This platform focuses on bridging traditional Web2 gaming with blockchain-powered rewards, incentivizing actions like game purchases and content creation.

The user acquisition metrics show rapid adoption:

• Surpassed 2 million users since its August 2025 launch.
• Doubled its user base in just over one month.
• Drew over 10,000 attendees at Coinfest Asia 2025 in Bali.
• Distributed $400,000 in rewards from its $1 million August Fiesta Giveaway.

The platform emphasizes accessibility, offering local fiat payment options and auto-custodial wallets.

Bitcoin mining and digital asset management

The9 Limited continues its digital asset management through its crypto mining business, which historically derived maximum revenue from this segment. While the focus has diversified, the mining operation remains a key activity for digital asset accumulation.

Here's a look at the financial snapshot from the end of the prior fiscal year, which informs current asset management strategy:

As of March 28, 2025, the market valued the company at $130M, with a stock price of $13.96.

The historical hash rate capability, which underpins this activity, was approximately 800 PH/S following 2021 machine acquisitions.

Mobile game operation and distribution in the China market

The9 operates in the China mobile gaming sector, particularly targeting the lower-tier cities (the sinking market), primarily through majority-owned joint ventures (JVs). The company holds a 51% stake in both the Huanyu and Qing Cheng JVs.

The Huanyu JV, which operates games like MIR M, has a committed 2025 performance target:

The Qing Cheng JV, focused on distribution in lower-tier cities, guaranteed a profit target for 2025:

• Guaranteed annual profit for 2025: Over RMB80 million (approximately US$11 million).
• The9's overall gross profit margin was cited at 62% in the context of this venture.

Furthermore, The9 recently acquired a 51% stake in another JV operating key mobile titles. The Glory All Stars title alone generated over RMB2 billion in cumulative gross revenue with a stable 40% gross margin. The acquisition cost for this 51% stake was approximately US$16.2 million, split into US$9.7M cash and US$6.5M in restricted shares.

Securing and deploying new mining machine fleets

This involves the capital expenditure and logistical effort to acquire and integrate new computing power for the Bitcoin mining segment. While specific 2025 deployment figures aren't immediately available, this activity is crucial for maintaining the segment's revenue base. The historical activity involved securing MOUs to acquire 10,489 machines to boost hash rate to approximately 251 PH/S, and finalizing agreements for 26,007 machines to reach a total hash rate of approximately 800 PH/S.

Developing and licensing new game intellectual property (IP)

The9 leverages existing IP for its GameFi platform and mobile operations. This activity centers on securing rights and integrating these assets into its ecosystem.

Key IP assets underpinning these activities include:

• IP rights from Capcom for the9bit, covering titles like Street Fighter 6, Resident Evil, and Monster Hunter.
• The Ultraman IP, which is the basis for the mobile game Ultraman: Hero Beyond Time.

The Ultraman: Hero Beyond Time game accumulated over 2.5 million registered users during its close beta test.

The9 Limited (NCTY) - Canvas Business Model: Key Resources

You're looking at the core assets The9 Limited relies on to execute its strategy, which is a blend of digital asset holding, crypto mining, and a pivot into Web3 gaming. Honestly, these resources are what give the company its operational leverage right now.

The most tangible financial asset is the digital treasury. As of April 2025, The9 Limited held approximately 285 BTC in its treasury. This holding was valued around $25.42M based on the Bitcoin price at that time, though a later report in December 2025 pegged the 285 BTC holding value at $26.5M. This Bitcoin forms a significant part of the balance sheet, stemming from its ongoing cryptocurrency mining business.

The mining operation itself requires physical assets. While the most recent public expansion details are from late 2021, that plan involved deploying over 32MW of capacity with 10,000 Bitmain S19j miners in the U.S., plus an additional 14,000 miners in Canada starting in December 2021. You have to assume this fleet has been maintained or upgraded, but the latest concrete deployment numbers are from that earlier period.

To fund the GameFi push, The9 secured external capital. In March 2025, the company signed agreements with several cryptocurrency investment funds, including Elune Capital, Fine Vision Fund, and Bripheno Pte. Ltd., for a total strategic investment of US$8 million. This capital was earmarked specifically for operating the global GameFi platform.

Here's a quick look at the primary digital and financial assets supporting the business:

On the intellectual property and technology front, the proprietary Web3 gaming platform, the9bit, is a major resource. This platform, which combines Web2 user experience with Web3 rewards, saw rapid adoption. It surpassed 1 million users in less than one month after its August 1, 2025 launch, and then doubled that to reach 2 million users by September 8, 2025.

Regarding specific game publishing rights, the situation is dynamic. You should note that the exclusive rights to publish MIR M in China are no longer a resource. The9 Limited announced the termination of the MIR M Game Publishing Agreement with Wemade Co., Ltd. on October 10, 2025, due to trademark issues. However, the company is still actively involved in mobile game operations in China through a joint venture partner who committed an annual profit of RMB 80 million with expected 50% annual growth, as reported in February 2025.

The key technology and platform resources include:

• Proprietary Web3 gaming platform technology, the9bit, which auto-generates wallets and supports local fiat payments.
• A strategic partnership with Yield Guild Games (YGG) to onboard gamers onto the9bit platform.
• Ownership of 19% of the $9BIT token supply, which is the official cryptocurrency for the platform, expected to list before December 31, 2025.
• The mobile game Ultraman: Hero Beyond Time, which has over 2.7 million registered users and 2 million monthly active users.

Finance: draft 13-week cash view by Friday.

The9 Limited (NCTY) - Canvas Business Model: Value Propositions

You're looking at how The9 Limited (NCTY) is structuring its offerings to capture value across its diverse operations as of late 2025. Honestly, the value proposition is split between the established crypto mining side and the rapidly evolving Web3/gaming ventures.

Exposure to digital asset appreciation via Bitcoin mining.

This proposition lets you tap into the digital asset space directly through The9 Limited's operational mining assets. As of March 30, 2025, the company reported holding 285 BTC, which at that time represented a treasury value of $25.42M. This shows a direct, tangible link to the performance of Bitcoin.

Earning real rewards and token-convertible rewards in Web3 gaming.

The Web3.5 GameFi platform, the9bit, launched in August 2025 and quickly scaled, hitting 2 million users by September 2025, effectively doubling its base in just over a month. This growth is fueled by the promise of rewards for engagement. Separately, a Joint Venture (JV) operation boasts over 19 million game users, with cumulative user payments exceeding RMB 1.9 billion.

Web2-friendly user experience with auto-generated wallets for Web3.

The focus here is removing the typical friction points for mainstream gamers entering the blockchain space. The the9bit platform specifically offers features like local fiat payment options and auto-generated wallets. This design choice is clearly working, given the rapid user acquisition to 2 million users shortly after launch.

Access to major IP games and content creation tools on the9bit.

The platform is designed to integrate with established gaming ecosystems. The value proposition includes access to AAA console and mobile games, supported by partnerships, such as those with Capcom and Vocagame, for in-game purchases. The platform rewards users not just for playing, but also for content creation within its 'Spaces.'

High-quality mobile game content for the China market.

For the crucial China market, The9 Limited is pushing high-quality mobile content through JVs. The strategic goal for one such JV is quite aggressive, with a revised revenue target set at $124M for the full year 2025. This market segment is supported by a substantial base of more than 3.9 million paying users within that specific JV structure.

Here's a quick look at some of the underlying operational and financial context supporting these value propositions, based on the latest available data:

The company is clearly trying to bridge its traditional revenue streams with the high-growth potential of Web3, using established user bases and new, user-friendly tech to drive adoption. Finance: draft the 13-week cash view by Friday.

The9 Limited (NCTY) - Canvas Business Model: Customer Relationships

You're looking at how The9 Limited (NCTY) manages its various customer groups, from the individual miner to the public shareholder. It's a mix of automated digital services and high-touch strategic partnerships. Honestly, the data shows a clear split between the blockchain/mining side and the gaming operations.

Automated, self-service platform for crypto mining pool participation

The relationship here is largely transactional and platform-driven for the mining customers. The core engagement is through the infrastructure itself, which is designed for self-service operation. As of December 2025, The9 Limited held 285 BTC, which was valued at $26.5M. This holding reflects the output and engagement with the underlying mining assets. For context on market visibility, the 30-day trading volume for NCTY stock was $7.3M, against a Market Cap of $128.7M.

Dedicated community hubs (Spaces) and guild support on the9bit

Engagement here is focused on building a persistent user base around the blockchain and digital asset ecosystem. While specific user counts for the 'Spaces' or guild participation aren't immediately public, the strategic investment received in March 2025 of US$8 million from cryptocurrency investment funds suggests a focus on scaling this community-driven Web3 component. The company plans to issue 10% of its shares within 3 years to support the future market, operation, and exchange of GameFi coins, directly tying community value to shareholder structure.

Direct-to-consumer engagement via game distribution channels

For the gaming segment, the relationship is managed through a flagship subsidiary where The9 Limited holds a 51% stake. This venture targets China's lower-tier mobile games market. The partner distributor claims significant existing reach, including 88.7 million registered users, 5.9 million Monthly Active Users (MAUs), and 0.6 million Daily Active Users (DAUs). Cumulative user payments through these channels reached ¥4.4 billion ($29.4m). The JV aims to generate over ¥80 million ($11m) in profit in 2025 from this direct customer base, projecting at least 50% annual growth for 2026 and 2027.

Investor relations for public shareholders (Nasdaq: NCTY)

For public shareholders holding American Depositary Shares (ADSs), the relationship is governed by regulatory compliance and corporate governance events. The9 Limited fixed the close of business on November 14, 2025, as the Record Date for determining who could vote at the Annual General Meeting (AGM) scheduled for December 22, 2025. The latest audited financial statements available were for the fiscal year ended December 31, 2024, filed on Form 20-F. Beneficial owners of ADSs must act through the depositary, The Bank of New York Mellon, to exercise voting rights.

Strategic relationship management with JV partners

Managing the relationship with key Joint Venture (JV) partners is critical, especially given the profit-sharing structure. The primary JV partner is committed to delivering over ¥80 million ($11m) in profit for 2025. The9 Limited's 51% ownership directly translates its customer success in the gaming segment into its own revenue stream. Furthermore, the company secured US$8 million in strategic investment in March 2025, indicating a successful relationship management effort with key financial partners who are now stakeholders.

Here's a quick look at the key figures tied to these customer/partner relationships:

If onboarding for new mining capacity takes longer than expected, hash rate contribution to the self-service pool could lag the projected revenue targets. Finance: draft 13-week cash view by Friday.

The9 Limited (NCTY) - Canvas Business Model: Channels

You're looking at how The9 Limited (NCTY) gets its value propositions-from Web3 gaming to traditional game operations-into the hands of users and investors as of late 2025. It's a multi-pronged approach, blending digital asset operations with game distribution.

Global GameFi platform (the9bit) for Web3 users

The primary channel for the Web3.5 GameFi platform, the9bit, is direct-to-user via its platform, the9bit.com. This channel saw explosive growth, hitting 2 million users since its August 2025 launch, and doubling that base in just over a month. By October 15, 2025, the user count had climbed further to over 4 million registered users, with 300,000 daily active users. This platform is designed for accessibility, featuring local fiat payment options to simplify Web3 entry. The platform generated over $1.5 million in revenue by mid-October 2025. Community engagement is also driven through physical presence, such as drawing over 10,000 attendees at Coinfest Asia 2025 in Bali.

The key metrics for this channel include:

• Platform launch: August 2025.
• User base (as of Oct 15, 2025): Over 4 million.
• Daily Active Users (as of Oct 15, 2025): 300,000.
• Revenue generated (as of Oct 15, 2025): Over $1.5 million.
• Event attendance: Over 10,000 at Coinfest Asia 2025.

Regional guild partners (YGG) for player onboarding, especially in Southeast Asia

To accelerate user acquisition, The9 Limited uses established Web3 communities as a direct onboarding channel. The strategic partnership with Yield Guild Games (YGG), announced August 1, 2025, is central here. YGG brings a proven model for bringing in new players, especially in emerging markets. This partnership integrates the9bit into YGG's official onboarding channels, aiming to onboard hundreds of thousands of highly engaged players.

The structure of the YGG network provides significant reach:

iOS and Android app stores for mobile game distribution in China

For its traditional online games operation, The9 Limited relies on the established mobile distribution ecosystem in China. The9bit itself leverages this channel indirectly through partnerships, such as with Vocagame, to facilitate in-game purchases for popular mobile titles like Honor of Kings and Mobile Legends: Bang Bang. The Chinese iOS market remains a massive revenue generator; for instance, Honor of Kings earned $115.7 million in September 2025. The Chinese iOS market represented 20% of the worldwide mobile game revenue in January 2025. Another example is Delta Force, which saw 97% of its September 2025 revenue of just over $58 million come from China.

Direct sales/private placement for strategic investors

Capital infusion for the global GameFi platform is channeled directly through private placements with specialized investment funds. In March 2025, The9 Limited signed agreements with Elune Capital, Fine Vision Fund, and Bripheno Pte. Ltd.. These investors committed to a total investment of US$8 million. To secure this capital, The9 Limited agreed to issue 302,263,200 stock warrants. Part of these warrants had an exercise price set at US$60 per ADS. This channel directly funds the operational expansion of the new global GameFi company.

Cryptocurrency exchanges for mined Bitcoin liquidation

The Bitcoin mining business provides a source of digital assets that are then liquidated, often through cryptocurrency exchanges, to support operations and treasury reserves. As of October 2025, The9 Limited held over 500 Bitcoins on its balance sheet, signaling its intent to act as a digital asset reserve company. While specific liquidation volumes for The9 Limited aren't public, market volatility shows the nature of this channel. For example, in August 2025, a market downturn saw $124 million in Bitcoin long positions liquidated in 24 hours when the price fell from a high of $124,496 to $115,255. Another event in October 2025 saw BTC drop to around $104,000 from a high of $126,000+.

You should track the company's quarterly reports for specific realized gains or losses from their BTC holdings, as this directly impacts the cash flow derived from this channel. Finance: draft 13-week cash view by Friday.

The9 Limited (NCTY) - Canvas Business Model: Customer Segments

You're looking at The9 Limited's customer base as of late 2025; it's a mix of digital asset holders and legacy gaming interests, which is a lot to manage, honestly.

The segments The9 Limited targets show a clear pivot toward blockchain assets, though the historical gaming roots are still present. Here's the quick math on the segments where we have hard numbers:

The digital asset enthusiast segment is quite concrete because The9 Limited has been transparent about its treasury strategy. Holding 285 Bitcoin is a significant commitment, positioning the company as a treasury-focused entity alongside its mining efforts. That holding was valued near $26.5 million in December 2025.

For the cryptocurrency investment funds, we saw a direct capital injection. The March 2025 private placement brought in US$8 million from investors like Elune Capital and Fine Vision Fund, which also came with warrants tied to the new GameFi platform launch.

The other segments are more about operational focus than immediate, trackable financial inflows in this specific view. You can see the focus areas through their stated activities:

• Global Web3 gamers and content creators seeking token rewards.
• Institutional and individual investors seeking crypto mining exposure.
• Traditional mobile gamers in China's sinking market.

The company is definitely trying to bridge its past with its future. They are committed to becoming a global diversified high-tech Internet company, balancing online games operation with the Bitcoin mining business. If onboarding for the new GameFi platform takes 14+ days, churn risk rises for those Web3 creators, you know.

The structure of the customer base suggests a dual strategy:

• Monetizing digital asset appreciation and mining rewards.
• Maintaining a foothold in the mobile gaming sector via joint ventures.

Finance: draft 13-week cash view by Friday.

The9 Limited (NCTY) - Canvas Business Model: Cost Structure

You're looking at the cost side of The9 Limited (NCTY) as of late 2025, and honestly, the numbers from the most recent full reporting periods show a cost base that has been a major headwind. The structure is heavily influenced by the capital-intensive nature of crypto mining and the ongoing investment in digital entertainment ventures. We have to look at the last twelve months (LTM) data, which gives us the clearest picture of the current cost burden.

The mining segment's costs, primarily electricity and hosting, are buried within the Cost of Goods Sold and Operating Expenses, but the resulting negative margins tell the story. For the LTM ending around the end of 2024, the company reported an Operating Income of -$7.05M on revenues of $15.31 million. That's a tough operating margin of -46.07%. The net result was a Net Income loss of -$10.06 million, leading to a Profit Margin of -65.72%.

Here's a quick look at the key financial outcomes that reflect these costs for that LTM period:

The gaming and IP development side brings its own set of expenditures. While specific 2025 figures for game development and marketing aren't cleanly separated in the latest public filings, we know these fall under Research and Development Expenses and Selling, General, and Administrative (SG&A) Expenses. For the first half of 2024, the company reported a net loss of 2,392 RMB, which was explicitly attributed to significant operating expenses and impairments in investments. This suggests that non-mining related costs, including game efforts, are substantial enough to contribute significantly to the bottom line pressure.

Employee costs and administrative overhead are relatively small compared to the operational costs of mining, but they are still a factor. As of the last reported data, The9 Limited had an Employee Count of 50. The cost associated with this team resulted in Profits Per Employee of -$201,186 for the LTM period. That number definitely stings.

When mapping the cost structure elements, you see a few major buckets that drive the cash burn:

• Significant electricity and hosting costs for global mining operations.
• Capital expenditure (CAPEX) on new mining machine purchases, though specific 2025 figures aren't public.
• High operating expenses and impairments in investments, evidenced by the LTM Operating Income of -$7.05M.
• Game development, licensing, and marketing costs for new IP, contributing to R&D and SG&A.
• Employee salaries and administrative overhead for the 50 staff members.

To be fair, the gross profit for H1 2024 was 6,979 RMB, an improvement from a loss the prior year, suggesting some cost control might be taking hold in the core operations, even if the overall net result was a loss of 2,392 RMB. Still, the negative Gross Profit of -$219,753 in the LTM period shows that input costs, especially power, are outpacing revenue generation from the assets on hand.

Finance: draft a sensitivity analysis on electricity cost per MWh impact on Gross Profit by end of week.

The9 Limited (NCTY) - Canvas Business Model: Revenue Streams

You're looking at how The9 Limited converts its strategic moves into actual dollars, and right now, the focus is heavily on these joint ventures (JVs) to drive 2025 income.

The primary expected revenue driver is the China JV with Zhejiang Huanyu Network Technology Co., Ltd., established in September 2024. The partner committed that this Joint Venture will generate game revenues of at least RMB 900 million (approximately US$124 million) in 2025. The9 Limited holds a 51% stake in this operation, which includes operating games like MIR M.

The revenue streams are diversified across gaming partnerships and technology investments, as shown in the expected 2025 commitments:

The structure of these JVs dictates a significant portion of the income flow. For the Huanyu JV, the commitment is on revenue, but the profit distribution is clear. All after-tax profits of the Joint Venture will be distributed as dividends every quarter according to the shareholding ratio of the Joint Venture partners. The committed profit for this specific JV was RMB 300 million (approximately US$41 million) for 2025, which translates directly into expected dividend income for The9 Limited based on its 51% ownership.

You also need to track income from other established areas:

• Game revenues from the China JV, committed to at least RMB 900 million (approx. US$124 million) in 2025.
• Dividends from the 51% stake in the mobile game Joint Venture (Huanyu), based on a committed profit of RMB 300 million for 2025.
• Dividends from the 51% stake in the AI algorithms JV (TongZe), based on a committed profit of more than RMB 100 million for 2025.
• Dividends from the 51% stake in the Sinking Market mobile game JV (Qing Cheng), based on a committed profit of more than RMB 80 million for 2025.

Revenue from self-mined Bitcoin and other digital assets is a stated business line, as The9 Limited is involved in the cryptocurrency mining industry. However, a specific revenue amount generated from self-mined Bitcoin for the 2025 fiscal year is not explicitly detailed in the latest available forward-looking commitments found.

For game top-ups and in-platform purchases on the9bit, the platform has shown user traction, hitting 1 million users at one point, and held a promotional event where 3 lucky players shared US$180,000 in August. Still, a concrete 2025 revenue figure from these in-platform purchases isn't quantified in the current forward-looking statements.

Potential revenue from new ventures like AI is partially quantified through the JV structure. The AI algorithms and big data marketing service provider JV (TongZe) committed to an annual profit of more than RMB 100 million (approximately US$14 million) in 2025. Furthermore, The9 is involved in SPAC investments, evidenced by its Singapore investee, Nanyang Biologics Pte. Ltd. (NYB), announcing a business combination with RF Acquisition Corp II for a US$1.5 billion transaction, which could lead to future investment gains or related revenue streams.

Also, note the other mobile game JV with ZhongXinShun, which operates Glory All Stars, a game with RMB 2 billion in cumulative gross revenue and a 40% gross margin, which contributes to the after-tax profits distributed quarterly.

Finance: draft 13-week cash view by Friday.