Antalpha's second-quarter performance fell into the red, dragged down by massive losses from its Aurelion digital gold asset unit, a core loss driver that sharply reduced the total value locked (TVL) in its loan-related assets and marked a significant financial turning point.

Data compiled by Woofun AI shows Antalpha's second-quarter revenue declined 28% year-over-year to $12.2 million. Net income swung from a profit of just $0.7 million in the first quarter to a net loss of $12.5 million in the second quarter.

The contraction was visible across all business segments: supply chain-related loan TVL plunged 46% to $384 million, while margin loan TVL fell 27% to $969 million. Combined, total lending volume decreased by $696 million.

Looking ahead to the third quarter, Antalpha projects revenue in the range of $10 million to $12 million, below second-quarter levels, though its core platform, Antalpha Prime, remains profitable on a non-GAAP basis.

Chief Financial Officer Paul Liang emphasized rigorous operations and risk control, stating the company plans to deploy capital selectively, prioritizing high-return businesses such as the Web3 AI agent Nina to optimize long-term shareholder value. The strategic focus is shifting from pure asset holding toward technology services.

Aurelion CEO Frank Zheng noted the platform is being upgraded into a risk-control and technology support hub for on-chain gold operations, aiming to achieve sustainable revenue growth through technological support and reduce reliance on fluctuations in a single asset's price.