v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
As part of the acquisition of TCM on April 1, 2025, (See Note 3 - Business Combination), the Company acquired a new revenue stream, “Revenue from compute power” (See Note 2). Accordingly, as of December 31, 2025, the Company operates as two reporting segments. The Company’s segments are Bitcoin and HPC. The Bitcoin segment’s business is focused on bitcoin mining and hosting. The HPC segment’s business is focused on compute power.
The HPC segment was not a part of the Company until the segment was acquired on April 1, 2025. The Bitcoin segment’s operations have remained consistent for all periods presented, however, the Company only had one operating and reportable segment prior to the acquisition.
The CODM uses segment operating income (loss), segment gross profit and segment net income (loss) before income tax to assess segment performance. Segment operating income (loss) is used by the Company’s CODM to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into specific service offerings within the segment, such as for entering into significant contracts, hiring of key management or executive personnel, or making significant capital investment decisions. The CODM also reviews segment gross profit to assess operating efficiency and cost structure within each segment, which helps inform short-term operational decisions and identify trends affecting segment performance. In addition, the CODM reviews segment net income (loss) before income tax to evaluate overall segment profitability after considering all revenues and expenses attributable to the segment, and to inform broader, longer-term resource allocation and strategic planning decisions.
As of June 30, 2026, the Bitcoin and HPC segments had total assets of $45,182,834 and $169,819,382, respectively. As of December 31, 2025, the Bitcoin and HPC segments had total assets of $14,419,727 and $77,314,766, respectively. The entire goodwill balance of $31,416,827 as of June 30, 2026 and December 31, 2025 was allocated to the HPC segment.
Revenue and costs are directly attributed to our segments, and the revenues recognized as well as the costs incurred in generating those revenues within each segment are distinguishable based on the information systems in which each segment’s financial information gets recorded. There are no intersegment revenues or other transactions between the two segments that are eliminated in consolidation by the Company for external reporting.
Summary information regarding the Company’s operating segments along with the reconciliation of the Company’s segment net income, segment operating loss and segment gross profit to the Company’s consolidated net loss before income taxes is as follows for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026
BitcoinHPC
Total 
Reportable 
Segments
Revenue from cryptocurrency mining$410,081 $— $410,081 
Revenue from mining hosting services693,778 — 693,778 
Revenue from compute power— 5,608,946 5,608,946 
Total revenue1,103,859 5,608,946 6,712,805 
Cost of revenue651,724 1,590,678 2,242,402 
Segment gross profit452,135 4,018,268 4,470,403 (3)
Operating expenses1,237,032 8,360,454 9,597,486 
Segment operating loss(784,897)(4,342,186)(5,127,083)(2)
Other income (expense)
Gain on sale of property and equipment— 1,034 1,034 
Segment net income (loss) before income tax$(784,897)$(4,341,152)$(5,126,049)(1)
(1)Reconciliation of segment net income (loss) before income taxes:
Unallocated corporate overhead expenses:
Wages and salaries$(660,909)
Professional fees(1,428,803)
Other general and administrative expenses(453,796)
Unallocated other income (expense):
Loss on issuance of convertible note(19,241,000)
Change in fair value of convertible note2,380,000 
Change in fair value of additional convertible note options3,850,850 
Other income (expense), net(113,905)
Interest expense, net(2,045,748)
Income before income taxes$(22,839,360)
(2)Reconciliation of segment operating loss:
Segment operating loss$(5,127,083)
Segment other income (expense), net1,034 
Unallocated corporate overhead expenses(2,543,508)
Unallocated other income (expense), net(15,169,803)
Income before income taxes$(22,839,360)
(3)Reconciliation of segment gross profit:
Segment gross profit$4,470,403 
Segment operating expenses(9,597,486)
Segment other income (expense), net1,034 
Unallocated corporate overhead expenses(2,543,508)
Unallocated other income (expense), net(15,169,803)
Income before income taxes$(22,839,360)
Three Months Ended June 30, 2025
BitcoinHPC
Total 
Reportable 
Segments
Revenue from cryptocurrency mining$148,038 $— $148,038 
Revenue from mining hosting services1,625,701 — 1,625,701 
Revenue from compute power— 1,311,700 1,311,700 
Total revenue1,773,739 1,311,700 3,085,439 
Cost of revenue1,090,399 295,975 1,386,374 
Segment gross profit683,340 1,015,725 1,699,065 (3)
Operating expenses1,044,353 1,973,564 3,017,917 
Segment operating loss(361,013)(957,839)(1,318,852)(2)
Other income (expense)
Income from equity method investments629,816 — 629,816 
Gain on remeasurement of investment in TCM— 14,549,536 14,549,536 
Change in fair value of digital assets85,756 — 85,756 
Segment net income (loss) before income tax$354,559 $13,591,697 $13,946,256 (1)
(1)Reconciliation of segment net income (loss) before income tax:
Unallocated corporate overhead expenses:
Wages and salaries$(223,956)
Professional fees(560,641)
Other general and administrative expenses(78,084)
Unallocated other income (expense):
Loss on extinguishment of debt(71,094)
Other income (expense), net(7,527)
Interest expense, net(601,260)
Loss before income taxes$12,403,694 
(2)Reconciliation of segment operating loss:
Segment operating loss$(1,318,852)
Segment other income (expense), net15,265,108 
Unallocated corporate overhead expenses(862,681)
Unallocated other income (expense), net(679,881)
Loss before income taxes$12,403,694 
(3)Reconciliation of segment gross profit:
Segment gross profit$1,699,065 
Segment operating expenses(3,017,917)
Segment other income (expense), net15,265,108 
Unallocated corporate overhead expenses(862,681)
Unallocated other income (expense), net(679,881)
Loss before income taxes$12,403,694 
Six Months Ended June 30, 2026
BitcoinHPC
Total 
Reportable 
Segments
Revenue from cryptocurrency mining$779,060 $— $779,060 
Revenue from mining hosting services1,642,205 — 1,642,205 
Revenue from compute power— 7,711,458 7,711,458 
Total revenue2,421,265 7,711,458 10,132,723 
Cost of revenue1,721,323 2,656,876 4,378,199 
Segment gross profit699,942 5,054,582 5,754,524 (3)
Operating expenses2,661,029 11,571,567 14,232,596 
Segment operating loss(1,961,087)(6,516,985)(8,478,072)(2)
Other income (expense)
Income from equity method investments21,994 — 21,994 
Gain on sale of equity method investments12,569,661 — 12,569,661 
Gain on sale of property and equipment— 36,298 36,298 
Segment net income (loss) before income tax$10,630,568 $(6,480,687)$4,149,881 (1)
(1)Reconciliation of segment net income (loss) before income taxes:
Unallocated corporate overhead expenses:
Wages and salaries$(1,321,818)
Professional fees(2,564,571)
Other general and administrative expenses(832,861)
Unallocated other income (expense):
Change in fair value of warrant liability(1,585,838)
Loss on issuance of convertible note(73,881,850)
Change in fair value of convertible note2,380,000 
Change in fair value of additional convertible note options3,850,850 
Other income (expense), net(187,750)
Interest expense, net(2,584,024)
Income before income taxes$(72,577,981)
(2)Reconciliation of segment operating loss:
Segment operating loss$(8,478,072)
Segment other income (expense), net12,627,953 
Unallocated corporate overhead expenses(4,719,250)
Unallocated other income (expense), net(72,008,612)
Income before income taxes$(72,577,981)
(3)Reconciliation of segment gross profit:
Segment gross profit$5,754,524 
Segment operating expenses(14,232,596)
Segment other income (expense), net12,627,953 
Unallocated corporate overhead expenses(4,719,250)
Unallocated other income (expense), net(72,008,612)
Income before income taxes$(72,577,981)
Six Months Ended June 30, 2025
BitcoinHPC
Total 
Reportable 
Segments
Revenue from cryptocurrency mining$295,839 $— $295,839 
Revenue from mining hosting services3,349,152 — 3,349,152 
Revenue from compute power— 1,311,700 1,311,700 
Total revenue3,644,991 1,311,700 4,956,691 
Cost of revenue2,305,493 295,975 2,601,468 
Segment gross profit1,339,498 1,015,725 2,355,223 (3)
Operating expenses2,110,690 1,973,564 4,084,254 
Segment operating loss(771,192)(957,839)(1,729,031)(2)
Other income (expense)
Income from equity method investments864,320 — 864,320 
Gain on remeasurement of investment in TCM— 14,549,536 14,549,536 
Change in fair value of digital assets37,984 — 37,984 
Segment net income (loss) before income tax$131,112 $13,591,697 $13,722,809 (1)
(1)Reconciliation of segment net income (loss) before income tax:
Unallocated corporate overhead expenses:
Wages and salaries$(386,394)
Professional fees(917,185)
Other general and administrative expenses(78,084)
Unallocated other income (expense):
Change in fair value of warrant liability(692,103)
Loss on extinguishment of debt(153,834)
Other income (expense), net26,954 
Interest expense, net(940,946)
Loss before income taxes$10,581,217 
(2)Reconciliation of segment operating loss:
Segment operating loss$(1,729,031)
Segment other income (expense), net15,451,840 
Unallocated corporate overhead expenses(1,381,663)
Unallocated other income (expense), net(1,759,929)
Loss before income taxes$10,581,217 
(3)Reconciliation of segment gross profit:
Segment gross profit$2,355,223 
Segment operating expenses(4,084,254)
Segment other income (expense), net15,451,840 
Unallocated corporate overhead expenses(1,381,663)
Unallocated other income (expense), net(1,759,929)
Loss before income taxes$10,581,217 
Summary information regarding the reportable segment depreciation and amortization for the three and six months ended June 30, 2026 and 2025 are as follows: 
For the Three Months Ended 
June 30,
For the Six Months Ended 
June 30,
2026202520262025
Bitcoin$199,795 $326,305 $399,590 $804,353 
HPC6,682,359 733,595 9,149,409 733,595 
$6,882,154 $1,059,900 $9,548,999 $1,537,948