HODL1,lnc.

Business Details

The company's only reportable segment. Following the outflow of subsidiaries and assets by former management, the company resumed its "blockchain development and consulting business" in June 2025. It now operates around three pillars: the "BUIDL business," which supports Web3-related projects, system development, and technical consulting; the "HODL business" (currently in trial operation), which involves long-term holding and management of Ethereum; and the "AI management agent business," launched in May 2026. In substance, operations are run on the business base of the parent company alone.

Recent Overview

Revenue rose 234% year-on-year to ¥47 million, and while losses narrowed significantly, material uncertainty regarding the going concern assumption continues

Revenue for the second quarter (interim period) of the fiscal year ending October 2026 rose sharply to ¥47 million (up 234.3% year-on-year). Due to reductions in SG&A expenses (from ¥319 million to ¥228 million year-on-year), the operating loss narrowed to -¥202 million (from -¥308 million in the same period of the prior year). Because the extraordinary loss of ¥716 million (related to former management) recorded in the prior-year period did not recur, the interim net loss also improved significantly to -¥244 million (from -¥1,007 million in the prior-year period). Meanwhile, the company sold all of its investment securities (proceeds of ¥111 million), resulting in a large decrease in fixed assets. Pursuant to a board resolution dated April 30, 2026, the company issued the 16th and 17th stock acquisition rights (maximum proceeds of ¥6,426 million), allotted on May 19, 2026. The AI management agent business was newly launched starting in May 2026.

Key Products

Growth Drivers

• Following the resumption of the blockchain development and consulting business (June 2025), revenue increased 234% year-on-year, reflecting progress in customer acquisition
• Creation of a new revenue source through the AI management agent business launched in May 2026
• Strengthening of the Ethereum treasury operation framework through collaboration with Gauntlet
• Strengthening of the financial and business base through issuance of the 16th and 17th stock acquisition rights (maximum proceeds of ¥6,426 million)
• Deepening collaboration with the Ethereum ecosystem (advancing partnerships with domestic and international communities, industry associations, and related companies)
• Progress in domestic Web3 promotion policy and tax system development (organization of valuation methods for corporate-held cryptocurrency, consideration of separate taxation, etc.)

Risks

• Material uncertainty exists regarding the going concern assumption (impairment of the business and financial base resulting from the outflow of subsidiaries and assets by former management continues)
• Cash and deposits balance is limited at ¥156 million (end of Q2), and operating cash flow was an outflow of -¥178 million, making securing liquidity an urgent priority
• Fundraising through stock acquisition rights (up to ¥6,426 million) carries uncertainty regarding exercise status, with a risk that proceeds fall short of plan
• The outcome of litigation against former management and related parties is uncertain, and additional litigation-related expenditures are anticipated
• Full-year earnings guidance is undisclosed because the business is in a launch/growth stage, making reasonable forecasting difficult
• Risk from fluctuations in cryptocurrency (ETH) prices, and the risk management framework for treasury operations remains under development
• Rebuilding of the customer base and relationships is still in progress, and the continuity and stability of revenue have not yet been established
• Equity ratio declined from 78.7% at the end of the prior fiscal year to 52.8%, and accumulated deficit has widened (-¥5,596 million) due to cumulative net losses