Woofun AI reports that Antalpha, the Tether-backed digital asset financing group, posted a $12.5 million net loss in Q2, reversing a prior $700,000 profit due to strategic missteps at its Aurelion subsidiary. The financial decline was anchored by a $696 million loss from tokenized gold holdings, which overshadowed core lending operations and triggered a 28% revenue drop to $12.2 million.

The deeper driver of this contraction was a massive $696 million shrinkage in the facilitated loan book, reflecting broad-based weakness across both business segments. Supply-chain loan TVL plummeted 46% to $384 million, while margin-loan TVL fell 27% to $969 million.

Woofun AI data shows these operational metrics indicate a severe pullback in credit extension, directly correlating with the reported $12.5 million net loss and the $22 million impairment from Aurelion.

Structurally, the firm anticipates this revenue slowdown may extend into the third quarter, projecting earnings between $10 million and $12 million. This forecast remains below the $12.2 million achieved in Q2, despite management citing continued solid demand for crypto-collateralized financing and broadly unchanged market conditions. The divergence between total consolidated figures and core platform performance highlights the isolating impact of the gold subsidiary's failure.

Antalpha Prime, the core financing platform, remained operationally profitable on a non-GAAP basis, insulating the primary business from the consolidated deficit. Chief Financial Officer Paul Liang emphasized disciplined capital deployment, while Aurelion CEO Frank Zheng outlined a pivot toward a risk-control technology layer for on-chain gold. The company is advancing high-ROI complementary capabilities, including the Web3 AI agent Nina, aiming to generate recurring, technology-driven revenue beyond simple asset holding.