PowerCompute Reports Second Quarter 2026 Financial Results
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 $18 Million of Debt through New Debt Facility with Arch Lending, Significantly Lowering Interest Costs
TAMPA, Fla., August 14, 2026 -- PowerCompute, Inc. (NASDAQ: PWCM) (“PowerCompute” or the “Company”), a Bitcoin treasury and mining company expanding into high-performance computing (“HPC”) and artificial intelligence (“AI”) infrastructure, today reported financial results for the three and six months ended June 30, 2026.
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 on June 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’s June 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 of August 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 of June 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 on July 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 with Arch 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 Bruce Rodgers, Chairman, President and Chief Executive Officer of PowerCompute. "Our power-first approach remains our central advantage: we own 26 megawatts of energized, low-cost capacity today, and greenfield power takes years to replicate. Our work now is converting that advantage into contracted compute revenue.
"Our proof-of-concept deployment in Oklahoma is underway and has begun generating initial revenue from our engagements generated through Vast. The deployment is small and early, and we are treating it as a learning exercise rather than a milestone. The refinancing we completed after quarter-end lowered our borrowing cost materially, though the facility is short-dated and we remain focused on strengthening our liquidity position. We have real work ahead, and we intend to do it deliberately."
"Revenue was flat sequentially amid the continued soft Bitcoin price environment and grew 9.8% year-over-year on higher Bitcoin production," said Richard Russell, Chief Financial Officer of PowerCompute. "Core EBITDA loss narrowed to $2.8 million from $8.4 million in Q1 2026, largely because a smaller decline in Bitcoin price reduced the fair market value adjustment on mined Bitcoin by $2.5million and $1.5 million on the Loss on fair value of digital assets receivable. That improvement reflects Bitcoin price movement rather than a change in operating performance; mining margin was 29.0% for the quarter, down from 41.0% a year ago on lower Bitcoin prices. Following quarter-end we refinanced approximately $18 million of debt with Arch Lending at an interest rate of approximately 2% APR, compared with 12% on the prior financing package, materially reducing our interest expense. The Arch facility is a 30-day revolving facility secured by Bitcoin from our treasury, and its rate and availability are subject to renewal.”
Investor Conference Call
PowerCompute will host a conference call today, Friday, August 14, 2026 at 8:30 AM EDT, to discuss these results. A question-and-answer session will follow management's presentation.
Conference Call Details:
•Date: Friday, August 14, 2026
oParticipant Call Registration: Link
About PowerCompute
PowerCompute, Inc. (Nasdaq: PWCM) is a Bitcoin treasury and mining company expanding into high-performance computing and artificial intelligence infrastructure. Founded in 2008 and headquartered in Tampa, Florida, the Company
operates 26 megawatts of wholly-owned power infrastructure across facilities in Oklahoma and Mississippi. The Company also operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in the State of Florida. For more information, please visit https://www.power-compute.com.
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 SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the volatility of Bitcoin and other cryptocurrency prices, risks related to the use of Bitcoin as collateral for the Arch Facility, including the requirement to post additional collateral if the value of Bitcoin declines, our ability to satisfy the terms and conditions of the Arch Facility or to extend such loans on satisfactory terms, our ability to successfully enter and operate in the high-performance computing and AI infrastructure business, the availability and cost of GPU and related infrastructure equipment, competition in the HPC and AI compute market, our ability to finance our site acquisitions and cryptocurrency mining operations, the risks of operating in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, and our ability to identify and acquire additional mining sites. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
Investor and Media Contact
KCSA Strategic Communications
Philip Carlson
pcarlson@kcsa.com
212-896-1233
PowerCompute, Inc. and Subsidiaries Consolidated Balance Sheets
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June 30, |
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December 31, |
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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 Seastar Medical Holding Corporation |
|
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 |
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$ 37,086,717 |
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$ 51,316,226 |
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Liabilities and stockholders’ equity |
|
|
|
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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 |
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|
|
|
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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 |
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2,364,724 |
|
2,522,870 |
Total liabilities |
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21,562,208 |
|
22,439,432 |
Stockholders’ equity (Note 6) |
|
|
|
|
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025 |
|
- |
|
- |
Common stock, par value $.001; 350,000,000 shares authorized; 934,662 and 564,940 shares issued and outstanding as of June 30, 2026 and December 31, 2025 |
|
935 |
|
565 |
Additional paid-in capital |
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124,528,398 |
|
123,199,948 |
Accumulated deficit |
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(107,266,452) |
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(92,582,928) |
Total PowerCompute stockholders’ equity |
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17,262,881 |
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30,617,585 |
Non-GAAP Financial Measures
Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) and Core Earnings before Interest, Tax, Depreciation and Amortization (“Core EBITDA”) which adjusts for unrealized loss (gain) on investment and equity securities, loss (gain) on disposal of mining equipment, loss on impairment of prepaid mining machine deposits, and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
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Three Months ended June 30, |
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Six Months ended June 30, |
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2026 |
|
2025 |
|
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2026 |
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2025 |
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|
|
|
|
|
|
|
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Net income (loss) |
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$ (4,565,563) |
|
$ 60,500 |
|
|
$(14,681,105) |
|
$ (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 |
|
|
$ (11,778,877) |
|
$ (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 |
|
|
$ (11,246,888) |
|
$ (242,467) |
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