ENVALITH
株式会社HODL1 logo

HODL1,lnc.

2345・Standard Market・Information & Communication

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株式会社HODL1 logo
HODL1,lnc.2345

Business

HODL1, Inc. (formerly Cushim) is a blockchain company listed on the Standard Market of the Tokyo Stock Exchange. In February 2025, the former management team improperly diverted key subsidiaries (ZEDHD, Zaif, etc.), causing the company to lose nearly all of its existing businesses. The current management team was elected at an extraordinary general meeting of shareholders in April 2025 and is now driving a business turnaround built on three pillars: (1) the Blockchain Development & Consulting (BUIDL Business), resumed in June 2025, (2) a Digital Asset Treasury (DAT) business centered on Ethereum (ETH), and (3) legal recovery of the diverted assets. Its main customers are domestic companies requiring blockchain development and consulting services.

Business Model

In the blockchain development and consulting business, the company provides development support and consulting services while maintaining a high utilization rate for in-house engineers, thereby accumulating service revenue. In parallel, it aims to generate investment gains through a DAT (digital asset treasury) business that holds and manages Ethereum (ETH). Trial operations began in December 2025 with 20 ETH (acquisition cost: ¥9,242,101), and a risk management framework is being developed in collaboration with Gauntlet. External fundraising through stock acquisition rights (16th and 17th series) is also being utilized as a means of supplementing the company's financial base.

Company Strengths

Even after the departure of personnel under the former management team, the company has retained talent well-versed in blockchain technology and business, achieving 234% year-on-year revenue growth in just a few months following the resumption of business in June 2025. Engineer utilization rates have remained at high levels, confirming the immediacy of customer acquisition.

The company maintains close collaboration with Ethereum communities and industry organizations both domestically and internationally, and in November 2025 established "Kushim Labs," a privacy-focused Layer 2-related technology venture, through a partnership with INTMAX. It has also built an ETH treasury management framework in cooperation with Gauntlet, establishing a technical position within the Ethereum ecosystem.

The company has already filed lawsuits seeking approximately ¥3.3 billion in total against the former management team, Kaika FHD, NexGroup, and others. An interim report by an investigator appointed under Article 316, Paragraph 1 of the Companies Act also supports pursuing liability for breach of the duty of care, indicating potential for financial base recovery should asset recovery be realized.

ENVALITH's Perspective

In the current interim period, the company recorded an operating loss of ¥202 million and an interim net loss of ¥244 million, and has not yet established a stable revenue base or operating cash flow. Cash and cash equivalents decreased to ¥155 million (down ¥67 million from the end of the previous fiscal year), with operating cash flow showing an outflow of ¥178 million. While proceeds from the sale of investment securities (¥111 million in inflows) have supplemented funds, the scope for further asset sales is narrowing. The near-term focus is whether fundraising through the 16th and 17th stock acquisition rights (with a maximum fundraising amount of ¥6,426 million) will progress, and the risk of funds running dry if they remain unexercised remains high.

Net sales grew rapidly, up 234% year-on-year to ¥47 million, but total selling, general and administrative (SG&A) expenses of ¥228 million significantly exceed gross profit of ¥25 million. Within SG&A, fixed costs remain high, including directors' compensation of ¥37 million, salaries and bonuses of ¥29 million, fees paid of ¥32 million, and other expenses of ¥122 million. Stock-based compensation expense of ¥61 million (non-cash) also pushed up the loss. Achieving profitability would require sales to expand to several times their current scale, or a substantial reduction in fixed costs; at the current pace of growth, a near-term turn to profitability appears difficult.

A full allowance for doubtful accounts has been recorded against long-term loans receivable of ¥2,060 million, and the actual recoverability remains unclear at this time. Legal action regarding the transfer of subsidiaries and assets by former management continues, and the risk of prolonged litigation and rising costs cannot be ruled out. As an external factor, price fluctuations in the cryptocurrency market (Ethereum price) directly affect the profitability of the treasury business, creating a risk that the premises of the business plan could collapse in a market downturn. Earnings guidance is undisclosed on the grounds that a

Growth Strategy

Three pillars—blockchain development, ETH treasury, and AI business—alongside fundraising through stock acquisition rights

Continued expansion of the blockchain development and consulting business resumed in June 2025. The company is promoting Web3-related project support, system development, and technical consulting, and expanding its customer base through strengthened collaboration with the Ethereum ecosystem. In the first half of FY2026 (ending March 2026), revenue reached ¥47 million (up 234% year-on-year), reflecting progress in customer acquisition.

The company is advancing the establishment of a digital asset treasury business centered on Ethereum. In collaboration with Gauntlet, it is continuing trial operations aimed at verifying operating yields and risk management systems. Funds raised through stock acquisition rights are planned to be allocated to ETH acquisition and management. Cryptocurrency assets held by the company stood at ¥8 million as of the end of the interim period, remaining at the trial operation stage.

The AI management support agent business, launched in May 2026, is a SaaS-type service that supports the efficiency of corporate management administration and internal control operations. Business development and sales activities are underway, positioning it as a third revenue source alongside the blockchain and digital asset businesses. Contribution to results in the current interim period was minor.

Resolved by the Board of Directors on April 30, 2026, with allotment on May 19, 2026. The 16th series (160,000 units) and 17th series (60,000 units) combined are planned to raise up to ¥6,426 million. Proceeds are to be used for the Ethereum treasury business, blockchain-related businesses, and strengthening the management foundation. Allottees include FC Finance Solution No. 1 Investment Limited Partnership, a'gil Co., Ltd., Fracton Ventures, Inc., Hiroki Tahara, Ryo Tanaka, and Toyotaka Sakai.

The company continues legal action aimed at recovering assets and pursuing accountability regarding the transfer of subsidiaries and assets that occurred under former management. A full allowance for doubtful accounts of ¥2,060 million has been recorded against long-term loans receivable; while recovery, if achieved, is expected to improve the financial position, risks remain of prolonged litigation and rising costs.

Last updated: July 19, 2026