Agreement with Vast.ai Marks the Company's Entry into the HPC and AI infrastructure Market
Revenues Increased 9.8% Year-Over-Year; Mined 27.9 Bitcoin in the Second Quarter of 2026
Subsequent to Quarter End, the Company Strengthened Its Balance Sheet by Refinancing
Q2’26 Financial Results
- Total revenue for the quarter ending
June 30, 2026 was$2.1 million , in line with Q1 2026 and up 9.8% year-over-year. The year-over-year increase reflects an increase in the number of miners actively mining and decreased difficulty rate offset in part by a decrease in Bitcoin price. - The Company mined 27.9 Bitcoin during the second quarter at an average Bitcoin value of approximately
$72,000 , compared to 26.1 Bitcoin in Q1 2026 at an average Bitcoin value of approximately$75,700 and 18.4 Bitcoin in Q2 2025 at an average Bitcoin value of approximately$98,000 . The increase in Bitcoin mined was attributable to an increase in the number of miners actively mining. - Mining margin for the current quarter was 29.0% compared to a margin of 41.0% in Q2 2025. The Company generated approximately
$145,000 in curtailment and energy sales for the 2026 second quarter as compared to$223,000 in Q2 2025. The decrease is primarily due to an approximately 27% decline in Bitcoin prices for Q2 2026 vs Q2 2025. Mining margin is calculated as digital mining revenues minus digital mining cost of revenues net of curtailment and energy sales. - The Company incurred a
$1.3 million negative fair market value adjustment on mined digital assets due to Bitcoin price at approximately$58,400 onJune 30, 2026 , as compared to approximately$107,250 June 30, 2025 . The Company also incurred a$1.7 million negative fair market value adjustment on Digital (Bitcoin) accounts receivable in Q2 2026. - As of
August 9, 2026 , the Company’sJune 30, 2026 318.6 Bitcoin holdings (inclusive of Bitcoin held by Galaxy holdings) would be valued at approximately$20.7 million , based on a Bitcoin price of approximately$65,000 as ofAugust 9, 2026 . - Net loss for the second quarter of 2026 was approximately
$4.6 million , and Core EBITDA loss was approximately$2.8 million , compared with Q2 2025 net income of$0.1 million and Core EBITDA income of$2.6 million with the change being driven primarily by the$3 million in losses associated with the decrease in Bitcoin price in Q2 2026 versus the$3.8 million gain in the prior year quarter. - As of
June 30, 2026 , cash was approximately$0.9 million , and Bitcoin holdings totaled 318.6 Bitcoin, which includes 174 Bitcoin held by Galaxy Digital as collateral in a Digital assets receivable account. The total of the holdings was valued at approximately$18.6 million , based on a Bitcoin price of approximately$58,400 as ofJune 30, 2026 .
Q2’26 and Recent Operational Highlights
- Announced strategic expansion into HPC and AI infrastructure, leveraging the Company’s 26 MW of wholly-owned power infrastructure.
- Rebranded and renamed the Company to
PowerCompute, Inc. (Nasdaq: PWCM). Effective onJuly 22, 2026 , the Company began trading under the name and new ticker, to better align the Company identity with its expanded focus on delivering HPC and AI infrastructure alongside Bitcoin mining. - Entered into an agreement with Vast.ai (“Vast”) to utilize its graphics processing unit (“GPU”) compute marketplace to monetize and launch a proof-of-concept study for the Company’s professional-grade GPUs located at its
Oklahoma facility. - Refinanced and consolidated the Company’s three existing
$18 million debt facilities in the third quarter through a new debt facility withArch Lending (the “Arch Facility”), that utilizes 307 Bitcoin (“BTC”) from the Company’s treasury as collateral. The new Bitcoin industry collateral loan with Arch utilizes a revolving 30-day term that carries an interest rate of approximately 2% APR, compared to 12% on the prior loans, substantially lowering the Company's cost of debt and strengthening its capital structure.
Management Commentary
"During the second quarter we made the decision to expand our strategic direction into HPC and AI infrastructure," said
"Our proof-of-concept deployment in
"Revenue was flat sequentially amid the continued soft Bitcoin price environment and grew 9.8% year-over-year on higher Bitcoin production," said
Investor Conference Call
PowerCompute will host a conference call today,
Conference Call Details:
- Date:
Friday, August 14, 2026 - Time:
8:30 AM EDT - Participant Call Links:
About PowerCompute
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the
Investor and Media Contact
pcarlson@kcsa.com
212-896-1233
| Three Months ended | Six Months ended | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Digital mining revenues | $ | 2,008,220 | $ | 1,806,364 | $ | 3,986,400 | $ | 4,080,304 | ||||||||||
| Specialty finance revenue | 87,771 | 94,945 | 195,428 | 162,334 | ||||||||||||||
| Rental revenue | 20,593 | 27,015 | 43,723 | 57,023 | ||||||||||||||
| Total revenues | 2,116,584 | 1,928,324 | 4,225,551 | 4,299,661 | ||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 1,571,273 | 1,288,399 | 3,439,617 | 2,836,694 | ||||||||||||||
| Curtailment and energy sales | (145,071 | ) | (223,269 | ) | (512,666 | ) | (372,955 | ) | ||||||||||
| Staff costs and payroll | 1,113,824 | 1,087,627 | 2,431,099 | 2,138,104 | ||||||||||||||
| Depreciation and amortization | 840,142 | 2,039,343 | 1,669,970 | 4,076,921 | ||||||||||||||
| Loss (gain) on fair value of Bitcoin, net | 1,318,607 | (3,761,139 | ) | 5,103,025 | (1,951,163 | ) | ||||||||||||
| Professional fees | 450,389 | 308,829 | 796,083 | 673,314 | ||||||||||||||
| Selling, general and administrative | 345,317 | 375,420 | 721,745 | 685,384 | ||||||||||||||
| Real estate management and disposal | 20,008 | 22,420 | 33,383 | 58,734 | ||||||||||||||
| Collection costs | 12,804 | 8,589 | 25,184 | 25,941 | ||||||||||||||
| Settlement costs with associations | - | - | - | 3,693 | ||||||||||||||
| Loss (gain) on disposal of assets | (2,739 | ) | 99,578 | (2,739 | ) | 286,359 | ||||||||||||
| Other operating costs | 447,123 | 259,012 | 808,218 | 514,960 | ||||||||||||||
| Total operating costs and expenses | 5,971,677 | 1,504,809 | 14,512,919 | 8,975,986 | ||||||||||||||
| Operating income (loss) | (3,855,093 | ) | 423,515 | (10,287,368 | ) | (4,676,325 | ) | |||||||||||
| Unrealized gain (loss) on marketable securities | 8,110 | (5,110 | ) | 5,730 | (13,820 | ) | ||||||||||||
| Unrealized gain (loss) on investment and equity securities | (1,111 | ) | (130,890 | ) | 12,913 | (156,874 | ) | |||||||||||
| Impairment loss on prepaid mining machine deposit | (17,193 | ) | - | (17,193 | ) | - | ||||||||||||
| Gain on Galaxy loan derivative | 1,669,659 | - | 1,692,033 | - | ||||||||||||||
| Loss on fair value of purchased Bitcoin, net | - | - | - | (52,704 | ) | |||||||||||||
| Loss on fair value of digital assets receivable | (1,700,773 | ) | - | (4,879,213 | ) | - | ||||||||||||
| Change in credit loss reserve on digital assets receivable | 3,393 | - | 9,187 | - | ||||||||||||||
| Interest expense | (687,087 | ) | (227,546 | ) | (1,232,258 | ) | (448,452 | ) | ||||||||||
| Interest income | 14,532 | 531 | 15,064 | 1,676 | ||||||||||||||
| Income (loss) before income taxes | (4,565,563 | ) | 60,500 | (14,681,105 | ) | (5,346,499 | ) | |||||||||||
| Income tax expense | - | - | - | - | ||||||||||||||
| Net income (loss) | $ | (4,565,563 | ) | $ | 60,500 | $ | (14,681,105 | ) | $ | (5,346,499 | ) | |||||||
| Less: loss (gain) attributable to non-controlling interest | 1,253 | 40,054 | (2,419 | ) | 48,379 | |||||||||||||
| Net income (loss) attributable to | $ | (4,564,310 | ) | $ | 100,554 | $ | (14,683,524 | ) | $ | (5,298,120 | ) | |||||||
| Less: deemed dividends (Note 6) | (40,023 | ) | - | (40,023 | ) | - | ||||||||||||
| Net income (loss) attributable to common shareholders | $ | (4,604,333 | ) | $ | 100,554 | $ | (14,723,547 | ) | $ | (5,298,120 | ) | |||||||
| Basic income (loss) per common share (Note 1) | $ | (5.26 | ) | $ | 0.49 | $ | (16.99 | ) | $ | (25.80 | ) | |||||||
| Diluted income (loss) per common share (Note 1) | $ | (5.26 | ) | $ | 0.49 | $ | (16.99 | ) | $ | (25.80 | ) | |||||||
| Weighted average number of common shares outstanding | ||||||||||||||||||
| Basic | 875,050 | 205,336 | 866,689 | 205,336 | ||||||||||||||
| Diluted | 875,050 | 205,336 | 866,689 | 205,336 | ||||||||||||||
| 2026 (unaudited) | 2025 | |||||||
| Assets | ||||||||
| Cash | $ | 853,788 | $ | 1,424,426 | ||||
| Marketable securities | 43,110 | 37,380 | ||||||
| Prepaid expenses and other assets | 759,533 | 1,198,486 | ||||||
| Finance receivables | 3,272 | 17,533 | ||||||
| Digital assets - current (Note 2) | 751,547 | 2,563,474 | ||||||
| Digital assets - collateral (Note 2) | 5,500,000 | 5,500,000 | ||||||
| Digital assets receivable, net (Note 2) | 10,183,164 | 12,678,014 | ||||||
| Galaxy loan derivative asset (Note 4) | 979,600 | 47,673 | ||||||
| Income tax receivable | - | 31,187 | ||||||
| Current assets | 19,074,014 | 23,498,173 | ||||||
| Fixed assets, net (Note 3) | 8,620,463 | 9,917,350 | ||||||
| Intangible assets, net (Note 3) | 6,196,193 | 6,327,769 | ||||||
| Deposits on mining equipment | 14,974 | 1,597 | ||||||
| Investment in | 37,986 | 25,073 | ||||||
| Digital assets - long-term (Note 2) | - | 8,233,035 | ||||||
| Digital assets - collateral (Note 2) | 2,200,000 | 2,200,000 | ||||||
| Right of use assets (Note 5) | 617,099 | 728,995 | ||||||
| Other assets | 325,988 | 384,234 | ||||||
| Long-term assets | 18,012,703 | 27,818,053 | ||||||
| Total assets | $ | 37,086,717 | $ | 51,316,226 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Accounts payable and accrued expenses | 1,515,657 | 1,745,875 | ||||||
| Note payable - short-term (Note 4) | 6,588,035 | 7,006,912 | ||||||
| Master digital currency loan (Note 4) | 10,809,494 | 10,920,838 | ||||||
| Due to related parties (Note 7) | 76,826 | 48,319 | ||||||
| Current portion of lease liability (Note 5) | 207,472 | 194,618 | ||||||
| Total current liabilities | 19,197,484 | 19,916,562 | ||||||
| Note payable - long-term (Note 4) | 1,952,752 | 1,932,502 | ||||||
| Lease liability - net of current portion (Note 5) | 411,972 | 590,368 | ||||||
| Long-term liabilities | 2,364,724 | 2,522,870 | ||||||
| Total liabilities | 21,562,208 | 22,439,432 | ||||||
| Stockholders’ equity (Note 6) | ||||||||
| Preferred stock, par value | - | - | ||||||
| Common stock, par value | 935 | 565 | ||||||
| Additional paid-in capital | 124,528,398 | 123,199,948 | ||||||
| Accumulated deficit | (107,266,452 | ) | (92,582,928 | ) | ||||
| Total PowerCompute stockholders’ equity | 17,262,881 | 30,617,585 | ||||||
| Non-controlling interest | (1,738,372 | ) | (1,740,791 | ) | ||||
| Total stockholders’ equity | 15,524,509 | 28,876,794 | ||||||
| Total liabilities and stockholders’ equity | $ | 37,086,717 | $ | 51,316,226 | ||||
| Six Months ended | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (14,681,105 | ) | $ | (5,346,499 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation and amortization | 1,669,970 | 4,076,921 | ||||||
| Noncash lease expense | 111,896 | 96,373 | ||||||
| Amortization of debt issue costs and debt discount | 711,540 | 42,528 | ||||||
| Stock option expense | 530,448 | 135,426 | ||||||
| Accrued interest expense on finance lease | 26,244 | 30,553 | ||||||
| Loss (gain) on fair value of Bitcoin, net | 5,103,025 | (1,898,459 | ) | |||||
| Loss on fair value of digital assets receivable | 4,879,213 | - | ||||||
| Impairment loss on mining machine deposit | 17,193 | - | ||||||
| Unrealized loss (gain) on marketable securities | (5,730 | ) | 13,820 | |||||
| Gain on Galaxy loan derivative | (1,692,033 | ) | - | |||||
| Change in credit loss reserve on digital assets receivable | (9,187 | ) | - | |||||
| Unrealized loss (gain) on investment and equity securities | (12,913 | ) | 156,874 | |||||
| Loss (gain) on disposal of fixed assets | (2,739 | ) | 286,359 | |||||
| Write-off of income tax receivable | 31,187 | - | ||||||
| Change in operating assets and liabilities: | ||||||||
| Prepaid expenses and other assets | 480,006 | 398,424 | ||||||
| Advances to related party | 28,507 | 5,449 | ||||||
| Accounts payable and accrued expenses | (230,218 | ) | 540,514 | |||||
| Mining of digital assets | (3,986,400 | ) | (4,080,304 | ) | ||||
| Lease liability payments | (191,786 | ) | (171,474 | ) | ||||
| Net cash used in operating activities | (7,222,882 | ) | (5,713,495 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Net collections (investment) of finance receivables - original product | 8,332 | (2,434 | ) | |||||
| Net collections (investment) in finance receivables - special product | 5,929 | (2,635 | ) | |||||
| Capital expenditures | (252,145 | ) | (377,212 | ) | ||||
| Collection of note receivable | - | 200,000 | ||||||
| Proceeds from sale of fixed assets | - | 953,153 | ||||||
| Investment in digital assets - Tether | (5,296 | ) | (30,315 | ) | ||||
| Proceeds from sale of Bitcoin | 6,555,285 | 3,323,773 | ||||||
| Proceeds from the sale of Tether | 3,173 | 29,460 | ||||||
| Change in deposits for mining equipment | - | (986,690 | ) | |||||
| Distribution to members | - | (1,015 | ) | |||||
| Net cash provided by investing activities | 6,315,278 | 3,106,085 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Insurance financing repayments | (461,406 | ) | (410,877 | ) | ||||
| Proceeds from warrant exercise, net of issuance costs | 2,909 | - | ||||||
| Proceeds from the issuance of common stock, net of issuance costs | 795,463 | - | ||||||
| Issuance costs | - | (6,285 | ) | |||||
| Net cash provided by (used in) financing activities | 336,966 | (417,162 | ) | |||||
| (570,638 | ) | (3,024,572 | ) | |||||
| CASH - BEGINNING OF PERIOD | 1,424,426 | 3,378,152 | ||||||
| CASH - END OF PERIOD | $ | 853,788 | 353,580 | |||||
| SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||||||||
| Insurance financing | $ | - | $ | 168,324 | ||||
| Recognition of Galaxy loan derivative | $ | 760,105 | $ | - | ||||
| Digital assets transferred to digital assets receivable, net | $ | 2,375,176 | $ | - | ||||
| SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION | ||||||||
| Cash paid for taxes | $ | - | $ | - | ||||
| Cash paid for interest | $ | 568,015 | $ | 337,850 | ||||
Non-GAAP Financial Measures
Our reported results are presented in accordance with
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
| Three Months ended | Six Months ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income (loss) | $ | (4,565,563 | ) | $ | 60,500 | $ | (14,683,524 | ) | $ | (5,346,499 | ) | |||||
| Income tax expense | - | - | - | - | ||||||||||||
| Interest expense | 687,087 | 227,546 | 1,232,258 | 448,452 | ||||||||||||
| Depreciation and amortization | 840,142 | 2,039,343 | 1,669,970 | 4,076,921 | ||||||||||||
| Income (loss) before interest, taxes & depreciation | $ | (3,038,334 | ) | $ | 2,327,389 | $ | (11,781,296 | ) | $ | (821,126 | ) | |||||
| Unrealized loss (gain) on investment and equity securities | 1,111 | 130,890 | (12,913 | ) | 156,874 | |||||||||||
| Impairment loss on prepaid mining machine deposits | 17,193 | - | 17,193 | - | ||||||||||||
| Loss (gain) on disposal of mining equipment | (2,739 | ) | 99,578 | (2,739 | ) | 286,359 | ||||||||||
| Stock compensation and option expense | 199,299 | 24,621 | 530,448 | 135,426 | ||||||||||||
| Core income (loss) before interest, taxes & depreciation | $ | (2,823,470 | ) | $ | 2,582,478 | $ | (11,249,307 | ) | $ | (242,467 | ) | |||||
