v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

16. SEGMENT INFORMATION

 

The Company has chosen to organize its operating segments based on products or services offered. Each operating segment is also a reportable segment (i.e., operating segments have not been aggregated). As a result of the launch of the digital asset treasury reserve strategy in the fourth quarter of 2025, the Company reorganized the operating and reportable segments to include Avalanche Protocol and Bitcoin Mining All other activities, including financing, are carried out through the corporate segment. The prior period segment information has been recast to conform to the current period presentation.

 

Our Bitcoin Mining operations are conducted in Alberta, Canada and Ohio, USA, which reflects the manner in which the Company’s CODM group, composed of the Chief Executive Officer and Chief Financial Officer, reviews and assesses the performance of the business and allocates resources.

 

The information used by the CODM group to assess performance and allocate resources includes various measures of segment profit, however, for the purposes of the disclosures required by ASC 280, Segment Reporting and ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, the Company has determined that the measure most consistent with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements is net income. Segment financial information is used to monitor forecast versus actual results in order to make key operating decisions for each segment. The CODM group evaluates the performance or allocate resources for each segment based on the Company’s assets or liabilities.

 

The following discloses key financial information including the significant segment expenses, in the context of deriving net income, which are regularly provided to and reviewed by the CODM group reconciled to the segment’s net income:

 

  

Avalanche

Protocol

   Bitcoin Mining  

Corporate and

Other

   Total 
Six Months Ended June 30, 2026:                    
Revenue  $4,066   $1,262   $-   $5,328 
Significant segment expenses:                    
Cost of revenue, excluding depreciation   1,122    868    -    1,990 
Bitcoin operating costs   -    164    -    164 
Selling, general and administrative   64    5    4,388    4,457 
Repairs and maintenance   -    199    -    199 
Share-based compensation   -    -    556    556 
Depreciation and amortization   -    537    -    537 
Loss on disposal of operating assets   -    259    -    259 
Impairment of assets   3,740    -    -    3,740 
Realized loss digital asset transactions   5,317    -    -    5,317 
Unrealized loss on market valuation of digital assets   65,414    643    -    66,057 
Accretion of interest on debentures   -    -    3,546    3,546 
Foreign exchange gain   -    -    (5)   (5)
Loss on debt extinguishment   -    -    21    21 
Other expense   -    -    10    10 
Total operating expenses and other expenses (income)   75,657    2,675    8,516    86,848 
Net loss  $(71,591)  $(1,413)  $(8,516)  $(81,520)

 

  

Avalanche

Protocol

   Bitcoin Mining  

Corporate and

Other

   Total 
Three Months Ended June 30, 2026:                    
Revenue  $2,139   $678   $-   $2,817 
Significant segment expenses:                    
Cost of revenue, excluding depreciation   490    302    -    792 
Bitcoin operating costs   -    122    -    122 
Selling, general and administrative   28    3    2,160    2,191 
Repairs and maintenance   -    119    -    119 
Share-based compensation   -    -    303    303 
Depreciation and amortization   -    284    -    284 
Impairment of assets   2,613    -    -    2,613 
Realized loss digital asset transactions   20    -    -    20 
Unrealized loss on market valuation of digital assets   29,421    334    -    29,755 
Accretion of interest on debentures   -    -    1,728    1,728 
Foreign exchange gain   -    -    (5)   (5)
Loss on debt extinguishment   -    -    21    21 
Other expense   -    -    3    3 
Total operating expenses and other expenses (income)   32,572    1,164    4,210    37,946 
Net loss  $(30,433)  $(486)  $(4,210)  $(35,129)

 

 

  

Avalanche

Protocol

   Bitcoin Mining  

Corporate and

Other

   Total 
For the Six Months Ended June 30, 2025:                    
Revenue  $-   $725   $-   $725 
Significant segment expenses:                    
Cost of revenue, excluding depreciation   -    463    -    463 
Selling, general and administrative   -    28    2,496    2,524 
Repairs and maintenance   -    200    -    200 
Share-based compensation   -    -    208    208 
Depreciation and amortization   -    285    309    594 
Unrealized gain on market valuation of digital assets   -    (80)   -    (80)
Accretion of interest on debentures   -    -    1,938    1,938 
Change in fair value of derivative liabilities   -    -    (2,977)   (2,977)
Foreign exchange loss   -    -    77    77 
Gain on conversion of convertible debt   -    -    (87)   (87)
Loss on debt extinguishment   -    -    4,731    4,731 
Other income   -    -    (61)   (61)
Net loss from discontinued operations   -    -    1,401    1,401 
Total operating expenses and other expenses (income)   -    896    8,035    8,931 
Net loss  $-   $(171)  $(8,035)  $(8,206)

 

  

Avalanche

Protocol

   Bitcoin Mining  

Corporate and

Other

   Total 
Three Months Ended June 30, 2025:                    
Revenue  $-   $452   $-   $452 
Significant segment expenses:                    
Cost of revenue, excluding depreciation   -    242    -   $242 
Selling, general and administrative   -    (8)   1,187    1,179 
Repairs and maintenance   -    114    -    114 
Share-based compensation   -    -    81    81 
Depreciation and amortization   -    164    170    334 
Unrealized gain on market valuation of digital assets   -    (116)   -    (116)
Accretion of interest on debentures   -    -    967    967 
Foreign exchange loss   -    -    20    20 
Loss on debt extinguishment   -    -    4,616    4,616 
Other income   -    -    (68)   (68)
Net loss from discontinued operations   -    -    1,144    1,144 
Total operating expenses and other expenses (income)   -    396    8,117    8,513 
Net income (loss)  $-   $56   $(8,117)  $(8,061)

 

The following table summarizes the additions to long-lived assets, total long-lived assets, and total assets by segment, used by the CODM to assess segment performance:

 

   Avalanche Protocol   Bitcoin Mining   Corporate and Other   Total 
As of June 30, 2026                    
Property and equipment, additions  $-   $2,523   $-   $2,523 
Digital assets, additions  $6,546   $1,262   $-   $7,808 
                     
Balances:                    
Property and equipment, net  $-   $5,973   $-   $5,973 
Digital assets, current and non-current  $79,817   $1,792   $-   $81,609 
Intangible assets, net  $-   $294   $-   $294 
Intangible asset held for sale  $-   $-   $1,550   $1,550 
Total assets  $107,558   $13,712   $1,929   $123,199 
                     
As of December 31, 2025                    
Property and equipment, additions  $-   $1,248   $-   $1,248 
Digital assets, additions  $160,040   $1,733   $-   $161,773 
                     
Balances:                    
Property and equipment, net  $-   $4,246   $-   $4,246 
Digital assets, current and non-current  $152,509   $1,161   $-   $153,670 
Intangible assets, net  $-   $409   $-   $409 
Intangible asset held for sale  $-   $-   $1,550   $1,550 
Total assets  $178,052   $13,211   $3,700   $194,963 

 

 

The following tables summarize revenue and certain assets, such as cash and cash equivalents, property, plant, and equipment and digital assets by geographic area based on the location of the underlying activity or rendering of services and location of the underlying assets:

 

   Six Months Ended June 30, 
   2026   2025 
Revenue        
Canada  $829   $233 
United States   4,499    492 
Total Revenue  $5,328   $725 

 

   Three Months Ended June 30, 
   2026   2025 
Revenue        
Canada  $449   $177 
United States   2,368    275 
Total Revenue  $2,817   $452 

 

   June 30, 2026   December 31, 2025 
Assets          
Cash and cash equivalents for all segments          
Canada  $9   $50 
United States   11,359    22,085 
Total cash and cash equivalents  $11,368   $22,135 
           
Property Plant and Equipment          
Canada  $2,884   $927 
United States   3,089    3,319 
Total property plant and equipment  $5,973   $4,246 
           
Digital Assets          
Canada  $873   $297 
United States   80,736    153,373 
Total digital assets, non-current  $81,609   $153,670