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., Aug. 14, 2026 (GLOBE NEWSWIRE) -- PowerCompute, Inc. $(PWCM)$ ("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
-- Time: 8:30 AM EDT
-- Participant Call Links:
-- Live Webcast: Link
-- Participant 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 Statements
of Operations (unaudited)
Three Months ended June
30, Six Months ended June 30,
-------------------------- -----------------------------
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
PowerCompute, Inc. $(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
PowerCompute, Inc. and Subsidiaries Consolidated Balance
Sheets
June 30, December 31,
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 $ 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
$.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 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
============ ===========
PowerCompute, Inc. and Subsidiaries Consolidated Statements
of Cash Flows
Six Months ended June 30,
-----------------------------
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)
----------- ----------
NET DECREASE IN CASH (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 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:
Three Months ended June
30, Six Months ended June 30,
------------------------ -----------------------------
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)
========== ========= =========== ==========