POWERCOMPUTE, INC.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
PWCM$0.53+13.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001193125-26-225433
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001193125-26-352417
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 154 previous paragraphs and 177 current paragraphs.
70 unchanged; 43 reworded; 52 added; 41 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (52)
Current report
our operating losses and indebtedness could raise substantial doubt about our ability to continue as a going concern,
Current report
our substantial indebtedness to Arch Lending under a 30-day financing arrangement and our potential inability to roll over, refinance, or otherwise repay this indebtedness at maturity on commercially reasonable terms,
Current report
our ability to successfully execute on our strategic expansion from Bitcoin mining into high-performance computing (“HPC”) and artificial intelligence (“AI”) infrastructure services,
Current report
our plans and expectations regarding the conversion of existing Bitcoin mining facilities to support HPC and AI workloads, including the expected timeline, cost, and scope of such conversions,
Current report
our ability to attract and retain customers for our HPC and AI infrastructure services on commercially reasonable terms, including the negotiation of long-term contracts that generate predictable, recurring revenue,
Current report
potential strategic initiatives, including joint ventures, partnerships, acquisitions, or divestitures related to our HPC and AI or Bitcoin operations,
Current report
our expectations regarding the relative economic returns of HPC and AI infrastructure services compared to Bitcoin operations and the anticipated pace of transition between these business lines,
Current report
our ability to successfully develop, market, and operate GPU-as-a-service offerings for AI and HPC customers,
Current report
Artificial Intelligence Infrastructure Business
Current report
In July 2026, we announced the expansion of our business into high-performance computing (“HPC”) and artificial intelligence (“AI”) infrastructure to take advantage of the 26 MW of power under our control. This expansion follows a broader industry trend in which other companies that, like us, have historically focused on Bitcoin mining have sought to redeploy their power and infrastructure assets to support AI and HPC workloads for hyperscalers and other AI and HPC customers.
Current report
In July 2026, we acquired one graphics processing unit (“GPU”) with approximately 101.7 teraflops of capacity, representing our initial investment in HPC-capable computing hardware. We began selling our computing capacity to Vast.AI in July 2026 under a demand pricing model, pursuant to which the pricing we receive for our computing capacity will vary based on prevailing market demand for such capacity.
Current report
Bitcoin mining and Bitcoin treasury operations currently remain our primary business. Consistent with the approach taken by other Bitcoin mining companies that have begun to diversify into HPC and AI infrastructure, we intend to continue operating our Bitcoin mining business to generate cash flow and help fund our operations while we build out our new HPC and AI business line. Over time, we expect our capital allocation to increasingly reflect investment in additional GPUs, power capacity, and data center infrastructure necessary to support HPC and AI workloads, and we may pursue additional strategic arrangements, such as hosting agreements, leasing arrangements, or joint ventures, to accelerate this expansion.
Current report
On June 24, 2026, the Board approved a one-for-twenty-five (1:25) reverse split of the Company’s issued and outstanding common stock, par value $0.001 per share, pursuant to which every twenty-five outstanding shares of common stock was converted into one share of common stock (the “Reverse Stock Split”). The Reverse Stock Split was effected by the filing of an amendment to our Certificate of Incorporation on July 9, 2026 which provided that the Reverse Stock Split became effective at 12:01 a.m. Eastern Time on July 13, 2026. No fractional shares shall be issued in the Reverse Stock Split and, in lieu thereof, any person who would otherwise be entitled to a fractional share of common stock as a result of the Reverse Stock Split received one share of common stock. The Company’s common stock began trading on The Nasdaq Capital Market on a split-adjusted basis on July 13, 2026. The Company has retroactively adjusted all share amounts and per share data herein to give effect to the Reverse Stock Split.
Current report
Corporate Name and Ticker Symbol Change
Current report
On July 20, 2026, the Company filed a Certificate of Amendment to its Certificate of Incorporation to change its corporate name from LM Funding America, Inc. to “PowerCompute, Inc.” The Name Change became effective at 12:01 a.m., Eastern Time, on July 22, 2026. In connection with the name change, the Company’s common stock began trading on the Nasdaq Capital Market under the new ticker symbol “PWCM” on July 22, 2026.
Current report
Compensation costs for three months ended June 30, 2026 was relatively flat at approximately $1.1 million from approximately $1.1 million for the three months ended June 30, 2025 primarily due to decrease in incentive compensation offset by increased staff costs associated with the Oklahoma and Mississippi sites.
Current report
Gain on Galaxy loan derivative
Current report
The Company recognized a $1.7 million gain and nil gain on the fair value of the derivative instrument attached to the Galaxy loan for the three months ended June 30, 2026 and 2025, respectively.
Current report
Net Income (Loss)
Current report
During the three months ended June 30, 2026, net loss was approximately ($4.6) million as compared to net income of approximately $0.1 million for the three months ended June 30, 2025.
Current report
Net Income (Loss) Attributable to PowerCompute, Inc.
Current report
During the three months ended June 30, 2026, net loss attributable to PowerCompute, Inc. was approximately ($4.6) million as compared to net income of approximately $0.1 million for the three months ended June 30, 2025.
Current report
Net Income (Loss) Attributable to Common Shareholders
Current report
During the three months ended June 30, 2026 and 2025, net income (loss) attributable to common shareholders was approximately $40 thousand and nil higher, respectively, than net income (loss) attributable to PowerCompute, Inc. due to deemed dividends related to warrant repricing. During the three months ended June 30, 2026, net loss attributable to common shareholders was approximately ($4.6) million as compared with net income of approximately $0.1 million for the three months ended June 30, 2025.
Current report
The Six Months Ended June 30, 2026 compared with the Six Months Ended June 30, 2025
Current report
Revenues
Current report
During the six months ended June 30, 2026, total revenues decreased by approximately $0.1 million, to approximately $4.2 million from approximately $4.3 million for the six months ended June 30, 2025.
Current report
Digital mining revenue decreased in the six months ended June 30, 2026 by approximately $0.1 million to approximately $4.0 million from approximately $4.1 million for the six months ended June 30, 2025.
Current report
Operating Expenses
Current report
During the six months ended June 30, 2026, operating expenses increased by approximately $5.5 million to approximately $14.5 million from approximately $9.0 million for the six months ended June 30, 2025. The increase in operating expenses is primarily due to the following factors:
Current report
The fair market adjustment on mined digital assets resulted in a loss of approximately $5.1 million for the six months ended June 30, 2026 compared to a gain of approximately $2.0 million for the six months ended June 30, 2025.
Current report
Digital mining cost of revenues
Current report
Curtailment and energy sales
Current report
Compensation from curtailment and energy sales was approximately $0.5 million for the six months ended June 30, 2026 compared to approximately $0.4 million for the six months ended June 30, 2025.
Current report
Staff costs and payroll
Current report
Depreciation and amortization
Current report
Loss (gain) on disposal of mining equipment
Current report
Loss (gain) on disposal of mining equipment was approximately ($3) thousand and approximately $0.3 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
Other Income (Expense)
Current report
Gain on Galaxy loan derivative
Showing the first 40 of 52 passages. Open the source sections for the rest.
Removed paragraphs (41)
Previous report
our ability to obtain funds to purchase receivables,
Previous report
our ability to purchase defaulted consumer receivables at appropriate prices,
Previous report
competition to acquire such receivables,
Previous report
our dependence upon third party law firms to service our accounts,
Previous report
our ability to manage growth or declines in the business,
Previous report
changes in government regulations that affect our ability to collect sufficient amounts on our defaulted consumer Association receivables,
Previous report
the impact of class action suits and other litigation on our business or operations,
Previous report
our ability to keep our software systems updated to operate our business,
Previous report
negative press regarding the debt collection industry which may have a negative impact on a debtor’s willingness to pay the debt we acquire, and
Previous report
Bitcoin was introduced in 2008 with the goal of serving as a digital means of exchanging and storing value. Bitcoin is a form of digital currency that depends upon a consensus-based network and a public ledger called a “blockchain”, which contains a record of every Bitcoin transaction ever processed. The Bitcoin network is the first decentralized peer-to-peer payment network, powered by users participating in the consensus protocol, with no central authority or middlemen, that has wide network participation. The authenticity of each Bitcoin transaction is protected through digital signatures that correspond with addresses of users that send and receive Bitcoin. Users have full control over remitting Bitcoin from their own sending addresses. All transactions on the Bitcoin blockchain are transparent, allowing those running the appropriate software to confirm the validity of each transaction. To be recorded on the blockchain, each Bitcoin transaction is validated through a proof-of-work consensus method, which entails solving complex mathematical problems to validate transactions and post them on the blockchain. This process is called mining. Miners are rewarded with Bitcoins, both in the form of newly-created Bitcoins and fees in Bitcoin, for successfully solving the mathematical problems and providing computing power to the network.
Previous report
New Bitcoins are introduced into circulation through a process called mining, where participants validate transactions and add them to the blockchain. Miners are rewarded with a fixed number of Bitcoins for each block they successfully add, with this reward halving approximately every four years to control the supply. As of March 31, 2026, there were approximately 20.01 million Bitcoins in circulation, with a maximum supply capped at 21 million, a limit expected to be reached around the year 2140. Additionally, as of
Previous report
March 31, 2026, Bitcoin’s market capitalization, calculated using market prices and total available supply, was approximately $1.4 trillion.
Previous report
The lifecycle of Bitcoin can be described by the following:
Previous report
Creation (Mining): New Bitcoin are issued as a reward to miners who successfully add a new block to the blockchain by solving complex cryptographic puzzles. This process is called “mining” and currently results in a fixed block reward that halves approximately every four years.
Previous report
Circulation: Once created, Bitcoin are held in digital wallets and can be transferred between users by broadcasting digitally signed transactions to the network.
Previous report
Validation and Settlement: Transactions are validated by nodes and recorded permanently on the blockchain.
Previous report
Removal: Bitcoin cannot be revoked or deleted, but they can become inaccessible if private keys are lost or if sent to unspendable addresses.
Previous report
Fixed Supply Cap: Issuance continues until the maximum supply limit is reached, after which miners will be compensated solely by transaction fees.
Previous report
While Bitcoin’s price has been significantly influenced by speculative trading, its valuation is also impacted by the underlying health and performance of the Bitcoin network. Key metrics such as the network’s hash rate (a measure of computational power), the number of active addresses, and transaction volumes can provide insights into network security, user adoption, and overall activity, all of which contribute to Bitcoin’s valuation.
Previous report
Custodially-Held Assets
Previous report
Through “off-the-shelf” custody agreements (the “Custody Agreements”), we custody approximately 94% of our Bitcoin holdings at regulated third-party custodians (the “Bitcoin Custodians”) that carry insurance and are chartered as a limited purpose trust company under the New York Banking Law. The remaining approximately 6% of our Bitcoin holdings are held in a depository account with the Bitcoin Custodians, where Bitcoin mining proceeds are deposited. The Bitcoin Custodians make available to us segregated from all other assets held by the Bitcoin Custodians in which our Bitcoin holdings are directly verifiable via the applicable blockchain. Bitcoin private keys are stored in two different forms: “hot” storage, whereby the private keys are stored on secure, internet-connected devices (a “hot wallet”), and “cold” storage, where digital currency private keys are stored completely offline. The Bitcoin Custody Agreements require the Bitcoin Custodians to hold our Bitcoin in cold storage, unless required to facilitate withdrawals as a temporary measure. The Bitcoin Custodians will at all times record and identify in their books and records that such Bitcoins constitute the property of our Bitcoin account. The Custody Agreements provide that the Bitcoin Custodians will not loan, hypothecate, pledge or otherwise encumber any of our Bitcoin held in our Bitcoin account. The Bitcoin Custodian’s services in respect of the Bitcoin account (i) allow Bitcoin to be deposited from a public blockchain address to our Bitcoin Account and (ii) allow Bitcoin to be withdrawn from our Bitcoin account to a public blockchain address as instructed by us. As of March 31, 2026, approximately 164 Bitcoin were held by the Bitcoin Custodians.
Previous report
The Custody Agreements do not have a set duration and remain in force until terminated as permitted by the Custody Agreement and the associated user agreement governing the general services provided by the Bitcoin Custodian (the “User Agreement”). We may terminate the Custody Agreement and custody services with the Bitcoin Custodian at any time. The Bitcoin Custodians may terminate the Custody Agreement at any time and for any reason, upon which the Bitcoin Custodians will return the Bitcoin held in our Bitcoin Account, less the value of any trading fee discounts, rebates, debts owed to the Bitcoin Custodian or damages the Bitcoin Custodian is entitled to pursuant to the Custody Agreement and User Agreement.
Previous report
While the Bitcoin Custodians carry insurance, their insurance does not cover any loss in value of Bitcoin and only covers losses caused by certain events such as fraud or theft and, in such covered events, it is unlikely the insurance would cover the full amount of any losses incurred by us. The insurance maintained by the Bitcoin Custodians is shared among all of the Bitcoin Custodian’s customers, is not specific to us or to any customers holding Bitcoin with the Bitcoin Custodian, and may not be available or sufficient to protect us from all possible losses or sources of losses. We directly maintain theft and fraud insurance covering our Bitcoin holdings, with coverage limits of $3 million per occurrence. We recognize the importance of assessing, identifying and managing material risks associated with cybersecurity threats. Our share of Bitcoins mined from our pools are initially received by us in wallets we control. We currently sell the majority of the Bitcoin we mine and utilize hot wallets to hold this Bitcoin immediately prior to selling for working capital purposes. We hold any remainder of our Bitcoin in cold storage, as described above.
Previous report
Our management evaluates all cybersecurity matters, with the purpose of meeting at least semi-annually and providing recommendations with respect to our information technology use and protection, including, but not limited to, data governance, privacy, compliance and cybersecurity. We have implemented controls, policies, procedures and technological safeguards to maintain and protect the integrity, continuous operation, redundancy and security of our IT systems and data that we believe to be reasonably consistent with industry standards and practices, or as required by applicable regulatory standards. We are also required to comply with applicable laws, rules, regulations and contractual obligations relating to the privacy and security of our IT systems and data and to the protection of such IT systems and data from unauthorized use, access, misappropriation or modification.
Previous report
Factors Affecting Profitability
Previous report
Market Price of Bitcoin
Previous report
Our business is heavily dependent on the price of Bitcoin. The prices of digital assets, including Bitcoin, have historically experienced substantial volatility, and digital asset prices have in the past and may in the future be driven by speculation and incomplete information, subject to rapidly changing investor sentiment, and influenced by factors such as technology, macroeconomic conditions, regulatory void or changes, fraudulent actors, manipulation, and media reporting. Further, the value of Bitcoin and other digital assets may be significantly impacted by factors beyond our control, including consumer trust in the market acceptance of Bitcoin as a means of exchange by consumers and producers.
Previous report
Bitcoin “Halving” Events
Previous report
Bitcoin halving is a phenomenon that has historically occurred approximately every four years on the Bitcoin network. Halving is a key part of the Bitcoin protocol and serves to control the overall supply and reduce the risk of inflation in digital assets using a Proof-of-Work consensus algorithm. At a predetermined block, the mining reward is cut in half, hence the term “halving.” For example, the reward for adding a single block to the blockchain was initially set at 50 Bitcoin currency rewards. The Bitcoin blockchain has undergone halving four times since its inception as follows: (1) on November 28, 2012 at block height 210,000; (2) on July 9, 2016 at block height 420,000; (3) on May 11, 2020 at block height 630,000 (4) on April 20, 2024 at block height 840,000 when the reward was reduced to its current level of 3.125 per block. The next halving for the Bitcoin blockchain is anticipated to occur around April 2028 at block height 1,050,000. This process will recur until the total amount of Bitcoin currency rewards issued reaches 21.0 million, and the theoretical supply of new Bitcoin is exhausted, which is expected to occur around 2140. Many factors influence the price of Bitcoin, and potential increase or decrease in prices in advance of or following the future halving is unknown.
Previous report
Halving is an important part of the Bitcoin ecosystem, and it is closely watched by miners, investors, and other participants in the digital asset market. Each halving event has historically been associated with significant price movements in the value of Bitcoin.
Previous report
Network Hash Rate and Difficulty
Previous report
Generally, a Bitcoin mining rig’s chance of solving a block on the Bitcoin blockchain and earning a Bitcoin reward is a function of the mining rig’s hash rate, relative to the global network hash rate (i.e., the aggregate amount of computing power devoted to supporting the Bitcoin blockchain at a given time). As demand for Bitcoin increases, the global network hash rate rapidly increases, and as more adoption of Bitcoin occurs, we expect the demand for new Bitcoin will likewise increase as more mining companies are drawn into the industry by this increase in demand. Further, as more and increasingly powerful mining rigs are deployed, the network difficulty for Bitcoin increases. Network difficulty is a measure of how difficult it is to solve a block on the Bitcoin blockchain, which is adjusted every 2,016 blocks, or approximately every two weeks, so that the average time between each block is approximately ten minutes. A high difficulty means that it will take more computing power to solve a block and earn a new Bitcoin reward which, in turn, makes the Bitcoin network more secure by limiting the possibility of one miner or mining pool gaining control of the network. Therefore, as new and existing miners deploy additional hash rate, the global network hash rate will continue to increase, meaning a miner’s share of the global network hash rate (and therefore its chance of earning Bitcoin rewards) will decline if it fails to deploy additional hash rate at pace with the industry.
Previous report
Specialty Finance Business
Previous report
With respect to our specialty finance business, the Company has historically engaged in the business of providing funding to nonprofit community associations primarily located in the state of Florida. We offer incorporated nonprofit community associations, which we refer to as “Associations,” a variety of financial products customized to each Association’s financial needs. Our original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. Historically, we provided funding against such delinquent accounts, which we refer to as “Accounts,” in exchange for a portion of the proceeds collected by the Associations from the account debtors on the Accounts. In addition to our original product offering, we also purchase Accounts on varying terms tailored to suit each Association’s financial needs, including under our New Neighbor Guaranty™ program.
Previous report
Selling, general and administrative
Previous report
Selling, general and administrative costs were $0.4 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase is related primarily to travel costs associated with our Oklahoma and Mississippi facilities and costs associated with improving both sites.
Previous report
Loss on disposal of mining equipment
Previous report
Loss on disposal of mining equipment was nil and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.
Previous report
Net Loss Attributable to LM Funding America, Inc.
Previous report
On January 28, 2026, the Company extended the Loan Agreement and modified the contractual floor and ceiling market prices of the Collar Feature. The realized loss on the settlement of the derivative liability related to the modification of the Collar Feature was $48 thousand and was recorded within “Gain on Galaxy loan derivative” on the consolidated statements of operations for the three months ended March 31, 2026.
Showing the first 40 of 41 passages. Open the source sections for the rest.
Reworded paragraphs (43)
Previous wording
This Management’s Discussion and Analysis should be read in conjunction with the Unaudited Consolidated Financial Statements and Notes for the three months ended March 31, 2026, and with the Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
This Management’s Discussion and Analysis should be read in conjunction with the Unaudited Consolidated Financial Statements and Notes for the three and six months ended June 30, 2026, and with the Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
the early stage of our Bitcoin mining business and our lack of operating history in such business,
Current wording
the relatively early stage of our Bitcoin mining business and our lack of operating history in such business,
Previous wording
deterioration in general economic conditions,
Current wording
deterioration in general economic conditions, and
Previous wording
LM Funding America, Inc. (“we”, “our”, “LMFA”, or the “Company”) currently maintains three distinct business operations: our Bitcoin treasury operations, Bitcoin mining business and our specialty finance business.
Current wording
PowerCompute, Inc. (“we”, “our”, “PWCM”, or the “Company”) currently maintains three distinct business operations: our Bitcoin treasury operations, Bitcoin mining business, and our specialty finance business. In July 2026, we announced our business expansion into artificial intelligence (“AI”) infrastructure and high-performance computing (“HPC”).
Previous wording
In August 2025, we launched our Bitcoin treasury operations. During August 2025 we raised approximately $21.3 million in net proceeds from capital raises and we purchased 164 Bitcoins in August 2025 with substantially all of the proceeds from such offering, with the remainder used for working capital purposes. During December 2025, we raised an additional $5.9 million in net proceeds from capital raises and we purchased an additional 47 Bitcoin with substantially all of the proceeds from such offering.
Current wording
In August 2025, we launched our Bitcoin treasury operations. During August 2025 we raised approximately $21.3 million in net proceeds from capital raises and we purchased approximately 164 Bitcoins in August 2025 with substantially all of the proceeds from such offering, with the remainder used for working capital purposes. During December 2025, we raised an additional approximately $5.9 million in net proceeds from capital raises and we purchased an additional 47 Bitcoins with substantially all of the proceeds from such offering.
Previous wording
We currently maintain a formal, documented strategy that governs circumstances under which we acquire or monetize our Bitcoin holdings. Decisions to purchase or sell Bitcoin are made on a case-by-case basis at management’s discretion, taking into account factors such as our liquidity, general market conditions, and anticipated cash requirements. As of March 31, 2026, Bitcoin represents 100% of our treasury holdings. We do have small holdings of Tether and USDC outside of our treasury holdings that value in the aggregate less than $10,000 and are used for purchases with merchants that accepts such crypto assets as payment. We do not currently engage in hedging activities. We have not implemented derivative transactions, futures, options, swaps, or other financial instruments to reduce our exposure to Bitcoin price volatility. Any future hedging activity, if undertaken, would be determined by management on a discretionary basis.
Current wording
We currently maintain a formal, documented strategy that governs circumstances under which we acquire or monetize our Bitcoin holdings. Decisions to purchase or sell Bitcoin are made on a case-by-case basis at management’s discretion, taking into account factors such as our liquidity, general market conditions, and anticipated cash requirements. As of June 30, 2026, Bitcoin represented 100% of our treasury holdings. We do have small holdings of Tether outside of our treasury holdings that value in the aggregate less than $10,000 and are used for purchases with merchants that accept such crypto assets as payment. We do not currently engage in hedging activities. We have not implemented derivative transactions, futures, options, swaps, or other financial instruments to reduce our exposure to Bitcoin price volatility. Any future hedging activity, if undertaken, would be determined by management on a discretionary basis.
Previous wording
We obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time to support our operations and strategic growth. We do not currently plan to engage in regular trading of Bitcoin (other than as necessary to convert our Bitcoin into U.S. dollars) or to engage in hedging activities related to our holding of Bitcoin; however, our decision to hold or sell Bitcoin at any given time may be impacted by the Bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology to determine whether or when we will sell Bitcoin that we hold, or the number of Bitcoins we will sell. Rather, decisions to hold or sell Bitcoins are currently determined by management by monitoring the market in real time.
Current wording
dollars) or to engage in hedging activities related to our holding of Bitcoin; however, our decision to hold or sell Bitcoin at any given time may be impacted by the Bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology to determine whether or when we will sell Bitcoin that we hold, or the number of Bitcoins we will sell. Rather, decisions to hold or sell Bitcoins are currently determined by management by monitoring the market in real time.
Previous wording
As of March 31, 2026 and December 31, 2025, we held approximately 164 and 211 Bitcoin, respectively. The fair value of our Bitcoin as of March 31, 2026 and December 31, 2025 was approximately $11.2 million and $18.5 million, respectively, on our consolidated balance sheet. This does not include 174 Bitcoin valued at $11.9 million as of March 31, 2026 and 145 Bitcoin valued at $12.7 million as of December 31, 2025 classified as Digital assets receivable, net. As of March 31, 2026 and December 31, 2025 approximately 113 Bitcoin and 88 Bitcoin, respectively (with an approximate fair value of $7.7 million) were held in a custody account as collateral for the Company’s $7.0 million loans with SE & AJ Liebel Limited Partnership and were classified within “Digital assets - collateral” on the consolidated balance sheets.
Current wording
As of June 30, 2026 and December 31, 2025, we held approximately 145 and 211 Bitcoin, respectively. The fair value of our Bitcoin as of June 30, 2026 and December 31, 2025 was approximately $8.5 million and $18.5 million, respectively, on our consolidated balance sheet. This does not include 174 Bitcoins valued at approximately $10.2 million as of June 30, 2026 and 145 Bitcoin valued at approximately $12.7 million as of December 31, 2025 classified as Digital assets receivable, net. As of June 30, 2026 and December 31, 2025 approximately 131.8 Bitcoin and 88 Bitcoin, respectively (with an approximate fair value of $7.7 million) were held in a custody account as collateral for the Company’s $7.0 million loans with SE & AJ Liebel Limited Partnership and were classified within “Digital assets - collateral” on the consolidated balance sheets.
Previous wording
The following is a summary of the average cost of revenues for mining each Bitcoin during the three months ended March 31, 2026 and 2025:
Current wording
The following is a summary of the average cost of revenues for mining each Bitcoin during the three and six months ended June 30, 2026 and 2025:
Previous wording
The Company’s Bitcoin unit activity during the three months ended March 31, 2026 and 2025 was as follows:
Current wording
The Company’s Bitcoin unit activity during the six months ended June 30, 2026 and 2025 was as follows:
Previous wording
The Company records depreciation expense (a non-cash expense) on its miners on a straight-line basis over the miners' expected useful life. Such non-cash depreciation amounts are recorded within the consolidated statements of operations and comprehensive loss as “Depreciation and Amortization”. Although the Company recognizes depreciation with respect to its mining assets, it does not consider depreciation in determining whether it is economical to operate its mining equipment since depreciation expense is not an avoidable operating cost, such as energy costs. The table above presents the non-cash miner depreciation expense on a “per Bitcoin” basis, calculated by dividing miner depreciation expense in our hosted facilities by the number of Bitcoin mined in the hosted facilities. On a “per Bitcoin” ratio, direct costs to mine including miner depreciation expense was approximately $82 thousand and $139 thousand for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The Company records depreciation expense (a non-cash expense) on its miners on a straight-line basis over the miners' expected useful life. Such non-cash depreciation amounts are recorded within the consolidated statements of operations and comprehensive loss as “Depreciation and Amortization”. Although the Company recognizes depreciation with respect to its mining assets, it does not consider depreciation in determining whether it is economical to operate its mining equipment since depreciation expense is not an avoidable operating cost, such as energy costs. The table above presents the non-cash miner depreciation expense on a “per Bitcoin” basis, calculated by dividing miner depreciation expense in our hosted facilities by the number of Bitcoin mined in the hosted facilities. On a “per Bitcoin” ratio, direct costs to mine including miner depreciation expense was approximately $75 thousand and $78 thousand for the three and six months ended June 30, 2026, respectively, and approximately $166 thousand and $150 thousand for the three and six months ended June 30, 2025, respectively.
Previous wording
The Company utilizes a third-party broker to facilitate our participation in demand response programs at our Oklahoma site. The sale of power under these programs was approximately $0.4 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The Company utilizes a third-party broker to facilitate our participation in demand response programs at our Oklahoma site. The sale of power under these programs was approximately $0.1 million and $0.5 million for the three and six months ended June 30, 2026, respectively and approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2025, respectively.
Previous wording
• 15 MW hosting site located in Calumet, Oklahoma (the “Oklahoma site”) with approximately 4,640 installed Antminer machines which have a total projected hashrate of 554 PH.
Current wording
• 15 MW hosting site located in Calumet, Oklahoma (the “Oklahoma site”) with approximately 4,528 installed Antminer machines which have a total projected hashrate of 538 PH.
Previous wording
•11 MW hosting site located in Columbus, Mississippi (the “Columbus site”) with approximately 2,370 installed Antminer machines which have a total projected hashrate of 235 PH.
Current wording
• 11 MW hosting site located in Columbus, Mississippi (the “Columbus site”) with approximately 2,350 installed Antminer machines which have a total projected hashrate of 233 PH.
Previous wording
During the three months ended March 31, 2026, total revenues decreased by $0.3 million, to $2.1 million from $2.4 million for the three months ended March 31, 2025.
Current wording
During the three months ended June 30, 2026, total revenues increased by approximately $0.2 million, to approximately $2.1 million from approximately $1.9 million for the three months ended June 30, 2025.
Previous wording
Digital mining revenue decreased in the three months ended March 31, 2026 by $0.3 million to $2.0 million from $2.3 million for the three months ended March 31, 2025.
Current wording
Digital mining revenue increased in the three months ended June 30, 2026 by approximately $0.2 million to approximately $2.0 million from approximately $1.8 million for the three months ended June 30, 2025.
Previous wording
Bitcoin mining revenues are determined by two main drivers: quantity of Bitcoin mined and the price of Bitcoin on the date the Bitcoin is mined. During the three months ended March 31, 2026, we mined 26.1 Bitcoin with an average Bitcoin price of approximately $76 thousand as compared to 24.3 Bitcoin with an average Bitcoin price of approximately $94 thousand during the three months ended March 31, 2025. The decrease in Bitcoin mining revenue for the three months ended March 31, 2026 was attributable to a decrease in Bitcoin price, offset in part by the decreased difficulty rate, which reduced our share of the global hashrate and an increase in the number of miners actively mining.
Current wording
Bitcoin mining revenues are determined by two main drivers: quantity of Bitcoin mined and the price of Bitcoin on the date the Bitcoin is mined. During the three months ended June 30, 2026, we mined 27.9 Bitcoins with an average Bitcoin price of approximately $72 thousand as compared to 18.4 Bitcoins with an average Bitcoin price of approximately $98 thousand during the three months ended June 30, 2025. The increase in Bitcoin mining revenue for the three months ended June 30, 2026 was attributable to an increase in the number of miners actively mining offset in part by a decrease in Bitcoin price and decreased difficulty rate, which increased our share of the global hashrate.
Previous wording
During the three months ended March 31, 2026, operating expenses increased $1.0 million to $8.5 million from $7.5 million for the three months ended March 31, 2025. The increase in operating expenses is primarily due to the following factors:
Current wording
During the three months ended June 30, 2026, operating expenses increased by approximately $4.5 million to approximately $6.0 million from approximately $1.5 million for the three months ended June 30, 2025. The increase in operating expenses is primarily due to the following factors:
Previous wording
The fair market adjustment on mined digital assets resulted in a loss of $3.8 million for the three months ended March 31, 2026 compared to a loss of $1.8 million for the three months ended March 31, 2025.
Current wording
The fair market adjustment on mined digital assets resulted in a loss of approximately $1.3 million for the three months ended June 30, 2026 compared to a gain of $3.8 million for the three months ended June 30, 2025.
Previous wording
Compensation from curtailment and energy sales was $0.4 million for the three months ended March 31, 2026 compared to $0.1 million for the three months ended March 31, 2025.
Current wording
Compensation from curtailment and energy sales was approximately $0.1 million for the three months ended June 30, 2026 compared to approximately $0.2 million for the three months ended June 30, 2025.
Previous wording
Depreciation and amortization for three months ended March 31, 2026 decreased to $0.8 million compared to $2.0 million for the three months ended March 31, 2025 primarily due to the impairment of mining machines in the fourth quarter of 2025.
Current wording
Depreciation and amortization for three months ended June 30, 2026 decreased to approximately $0.8 million compared to approximately $2.0 million for the three months ended June 30, 2025 primarily due to the impairment of mining machines in the fourth quarter of 2025.
Previous wording
The Company incurred a $3.2 million and nil loss on the fair value of the digital assets receivable Bitcoin assets in custody for the Company’s loan facility with Galaxy Digital LLC for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The Company incurred an approximately $1.7 million and nil loss on the fair value of the digital assets receivable Bitcoin assets in custody for the Company’s loan facility with Galaxy Digital LLC for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
The Company recognized $0.5 million of interest expense for the three months ended March 31, 2026 as compared to $0.2 million for the three months ended March 31, 2025 due to an increase in secured borrowings.
Current wording
The Company recognized approximately $0.7 million of interest expense for the three months ended June 30, 2026 as compared to approximately $0.2 million for the three months ended June 30, 2025 due to an increase in secured borrowings and interest resulting from the Galaxy loan derivative instrument.
Previous wording
The Company owns 69.5% of the equity interests of LMFAO Sponsor LLC. As such, there is a $4 thousand net income for the three months ended March 31, 2026 attributable to the Non-Controlling Interest as compared to a $8 thousand net loss for the three months ended March 31, 2025.
Current wording
The Company owns 69.5% of the equity interests of LMFAO Sponsor LLC. As such, there was an approximately $1 thousand net loss for the three months ended June 30, 2026 attributable to the Non-Controlling Interest as compared to an approximately $40 thousand net loss for the three months ended June 30, 2025.
Previous wording
Bitcoin mining costs increased by $0.4 million to $1.9 million for the three months ended March 31, 2026 from $1.5 million for the three months ended March 31, 2025 primarily due to an increase in the number of miners active at the Oklahoma and Mississippi sites as compared to third party hosting sites, and the idling of some mining machines during the prior year quarter. Mining costs as a percentage of digital mining revenue increased to 94.4% from 68.1% due to the overall lower operating costs of mining.
Current wording
Bitcoin mining costs increased by approximately $0.6 million to approximately $3.4 million for the six months ended June 30, 2026 from approximately $2.8 million for the six months ended June 30, 2025 primarily due to an increase in the number of miners active at the Oklahoma and Mississippi sites as compared to third party hosting sites, and the idling of some mining machines during the prior year quarter. Mining costs as a percentage of digital mining revenue increased to approximately 86% from approximately 70% due to the overall lower average Bitcoin price.
Previous wording
Compensation costs for three months ended March 31, 2026 increased by $0.2 million to $1.3 million from $1.1 million for the three months ended March 31, 2025 primarily due to increased staff costs associated with the Oklahoma and Mississippi sites.
Current wording
Compensation costs for six months ended June 30, 2026 increased by approximately $0.3 million to approximately $2.4 million from approximately $2.1 million for the six months ended June 30, 2025 primarily due to increased staff costs associated with the Oklahoma and Mississippi sites.
Previous wording
During the three months ended March 31, 2026, the Company generated a $10.1 million net loss before income taxes and the Company increased its income tax valuation allowance by $2.5 million, which offset the Company’s incurred net income tax benefit of $2.5 million which resulted in no income tax expense being recognized for the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company generated $5.4 million net loss before income taxes and the Company increased its income tax valuation allowance by $1.4 million, which offset the Company’s incurred net income tax benefit of $1.4 million, resulting in no income tax expense being recognized during the period.
Current wording
During the six months ended June 30, 2026, the Company generated an approximately $14.7 million net loss before income taxes and the Company increased its income tax valuation allowance by approximately $3.6 million, which offset the Company’s incurred net income tax benefit of approximately $3.6 million which resulted in no income tax expense being recognized for the six months ended June 30, 2026. During the six months ended June 30, 2025, the Company generated an approximately $5.3 million net loss before income taxes and the Company increased its income tax valuation allowance by approximately $1.5 million, which offset the Company’s incurred net income tax benefit of approximately $1.5 million, resulting in no income tax expense being recognized during the period.
Previous wording
During the three months ended March 31, 2026, net loss was $10.1 million as compared to net loss of $5.4 million for the three months ended March 31, 2025.
Current wording
During the six months ended June 30, 2026, net loss was approximately $14.7 million as compared to net loss of approximately $5.3 million for the six months ended June 30, 2025.
Previous wording
During the three months ended March 31, 2026, net loss attributable to LM Funding America, Inc. was $10.1 million as compared to net loss of $5.4 million for the three months ended March 31, 2025.
Current wording
During the six months ended June 30, 2026, net loss attributable to PowerCompute, Inc. was approximately $14.7 million as compared to net loss of approximately $5.3 million for the six months ended June 30, 2025.
Previous wording
Our primary sources of liquidity are our cash and cash equivalents, Bitcoin generated from our digital mining operations and proceeds from borrowings. At March 31, 2026 and December 31, 2025, we had cash, cash equivalents and Bitcoin (excluding $7.7 million of Bitcoin pledged as collateral against outstanding borrowings) of $4.3 million and $12.2 million, respectively. As of March 31, 2026, we had $0.8 million of cash and cash equivalents and $11.2 million of digital assets (164.2 Bitcoin with average cost of approximately $68 thousand), of which $7.7 million is pledged as collateral against outstanding borrowings, compared with $1.4 million of cash and cash equivalents and $18.5 million of digital assets (211.4 Bitcoin with average cost of approximately $88 thousand), of which $7.7 million is pledged as collateral against outstanding borrowings, at December 31, 2025.
Current wording
Our primary sources of liquidity are our cash and cash equivalents, Bitcoin generated from our digital mining operations and proceeds from borrowings. As of June 30, 2026, we had approximately $0.9 million of cash and cash equivalents and approximately $8.5 million of digital assets (approximately 144.6 Bitcoins with average fair value of approximately $58 thousand), of which $7.7 million is pledged as collateral against outstanding borrowings, compared with approximately $1.4 million of cash and cash equivalents and approximately $18.5 million of digital assets (approximately 211.4 Bitcoin with average fair value of approximately $88 thousand), of which $7.7 million is pledged as collateral against outstanding borrowings, at December 31, 2025.
Previous wording
This does not include 174 Bitcoins and 145 Bitcoins valued at $11.9 million and $12.7 million, as of March 31, 2026 and December 31, 2025, respectively, classified as Digital assets receivable, net. We have access to equity financing through equity and debt financing. Cash management continues to be a top priority. We expect to incur negative operating cash flows as we work to increase our digital mining revenue and maintain operational efficiencies.
Current wording
This does not include 174 Bitcoins and 145 Bitcoins valued at approximately $10.2 million and $12.7 million, as of June 30, 2026 and December 31, 2025, respectively, classified as Digital assets receivable, net. We currently have access to equity financing through equity and debt financing. Cash management continues to be a top priority. We expect to incur negative operating cash flows as we work to increase our digital mining revenue and maintain operational efficiencies.
Previous wording
Our working capital needs may increase in the future as we continue to expand and enhance our operations. Our ability to raise additional funds for working capital through equity or debt financings or other sources may depend on the financial success of our then current business and successful implementation of our key strategic initiatives, financial, economic and market conditions and other factors, some of which are beyond our control. No assurance can be given that we will be successful in raising the required capital at a reasonable cost and at the required times, or at all. Further equity financings may have a dilutive effect on shareholders and any debt financing, if available, may require restrictions to be placed on our future financing and operating activities. If we require additional capital and are unsuccessful in raising that capital, we may not be able to continue our business operations in the Bitcoin mining industry which could adversely impact our business, financial condition and results of operations.
Current wording
No assurance can be given that we will be successful in raising the required capital at a reasonable cost and at the required times, or at all. Further equity financings may have a dilutive effect on shareholders and any debt financing, if available, may require restrictions to be placed on our future financing and operating activities. If we require additional capital and are unsuccessful in raising that capital, we may not be able to continue our business operations in the Bitcoin mining industry which could adversely impact our business, financial condition and results of operations.
Previous wording
On March 27, 2026, the Company entered into an at the market offering agreement (the “Sales Agreement”) with Maxim Group LLC (the “Agent”), pursuant to which the Company may, from time to time, at the Company's discretion, offer and sell shares of the Company’s common stock, having an aggregate offering price of up to $75,000,000 (the “Shares”), through the Agent, acting as sales agent. The ATM program will remain in effect until the Sales Agreement is terminated by either the Company or Agent, with the Company having the right to terminate the agreement at any time upon 10 days’ notice and the Agent having the right to terminate at any time. As of March 31, 2026, an aggregate gross sales limit of $75,000,000 remains available for issuance under the ATM program. Approximately $120 thousand of legal and professional fees incurred related to the establishment of the ATM program as of March 31, 2026 were deferred and recorded within “Prepaid expenses and other assets” on the Consolidated Balance Sheets and will be amortized ratably as stock is issued under the program.
Current wording
On March 27, 2026, the Company entered into an at the market offering agreement (the “Sales Agreement”) with Maxim Group LLC (the “Agent”), pursuant to which the Company may, from time to time, at the Company's discretion, offer and sell shares of the Company’s common stock, having an aggregate offering price of up to $75,000,000 (the “Shares”), through the Agent, acting as sales agent. The ATM program will remain in effect until the Sales Agreement is terminated by either the Company or Agent, with the Company having the right to terminate the agreement at any time upon 10 days’ notice and the Agent having the right to terminate at any time. The Company sold approximately 179,000 shares and generated approximately $795,000 in net proceeds for the three and six months ended June 30, 2026.
Previous wording
The Company's cash flow summary for the three months ended March 31, 2026 and 2025 are as follows:
Current wording
The Company's cash flow summary for the six months ended June 30, 2026 and 2025 are as follows:
Previous wording
Net cash used in operations was $3.3 million during the three months ended March 31, 2026 compared with net cash used in operations of $2.9 million during the three months ended March 31, 2025. The mining of Bitcoin is considered a noncash item for operating purposes which totaled $2.0 million and $2.3 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Net cash used in operations was approximately $7.2 million during the six months ended June 30, 2026 compared with net cash used in operations of approximately $5.7 million during the six months ended June 30, 2025. The mining of Bitcoin is considered a noncash item for operating purposes which totaled approximately $4.0 million and $4.1 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
For the three months ended March 31, 2026 net cash provided by investing activities was $2.9 million as compared to net cash provided by investing activities of $0.7 million for the three months ended March 31, 2025. The proceeds from the sale of Bitcoin is considered an investing activity which totaled $3.1 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2025, the Company received net payments of approximately $0.2 million from the collection of Symbiont sale receivable while investing $0.5 million on deposits for Bitcoin mining equipment.
Current wording
For the six months ended June 30, 2026 net cash provided by investing activities was approximately $6.3 million as compared to net cash provided by investing activities of approximately $3.1 million for the six months ended June 30, 2025. The proceeds from the sale of Bitcoin is considered an investing activity which totaled approximately $6.6 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2025, the Company received net payments of approximately $0.2 million from the collection of Symbiont sale receivable while investing approximately $1.0 million on deposits for Bitcoin mining equipment.
Previous wording
Net cash used in financing activities was $0.2 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Net cash provided by financing activities was approximately $0.3 million compared to net cash used in financing activities of approximately $0.4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
On October 29, 2025, the Company entered into a Master Digital Currency Loan Agreement (the “Loan Agreement”) with Galaxy. On October 30, 2025, the Company made a draw under the Galaxy Loan Facility and borrowed a principal sum of $11 million (the “October 2025 Loan”). In connection with the October 2025 Loan, the Company granted to Galaxy a security interest in 145 Bitcoin owned by the Company as collateral. This security interest was subsequently increased to 174 Bitcoin in the three months ended March 31, 2026.
Current wording
On October 29, 2025, the Company entered into a Master Digital Currency Loan Agreement (the “Galaxy Loan Facility”) with Galaxy Digital LLC (“Galaxy”). On October 30, 2025, the Company made a draw under the Galaxy Loan Facility and borrowed a principal sum of $11 million (the “October 2025 Loan”). In connection with the October 2025 Loan, the Company granted to Galaxy a security interest in 145 Bitcoin owned by the Company as collateral. This security interest was subsequently increased to 174 Bitcoin in the six months ended June 30, 2026.
Previous wording
On April 6, 2026, the Company extended the Galaxy Loan Facility from April 24, 2026 through June 26, 2026.
Current wording
During the first half of 2026, the Company amended the Galaxy Loan Facility on January 28, February 27, and April 6 to extend the loan and modify the collar's pricing terms, resulting in realized derivative settlement losses of approximately $48 thousand and gains of $67 thousand and $214 thousand, respectively. On May 26, 2026, the Company extended the Galaxy Loan Facility from June 26, 2026 through August 28, 2026 with no other terms modified.
Previous wording
The Collar Feature is an embedded derivative requiring bifurcation under ASC 815-15. The fair value of the Collar Feature is calculated using a Black Scholes calculation using Level 3 inputs as of the loan inception date. Significant inputs for the fair value of the Collar Feature for the January and February modifications include the volatility of Bitcoin observed for a similar term as the remaining term of the loan of 32.4%-55.4% and short term treasury interest rates of 3.5%. The derivatives are classified as a debt discount and amortized over the life of the contract.
Current wording
The Collar Feature is an embedded derivative requiring bifurcation under ASC 815-15. The fair value of the Collar Feature is calculated using a Black-Scholes calculation using Level 3 inputs. Significant inputs for the fair value of the Collar Feature for the January, February and April modifications include the volatility of Bitcoin observed for a similar term as the remaining term of the loan of 32.4%-59.25% and short-term treasury interest rates of 3.5%. The derivatives are classified as a debt discount and amortized over the life of the contract.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
We obtain Bitcoin as a result of our mining operations, and we sell Bitcoin from time to time to support our operations and strategic growth. We do not currently plan to engage in regular trading of Bitcoin (other than as necessary to convert our Bitcoin into U.S.
Current report — wording carried from elsewhere
Bitcoin mining costs increased by approximately $0.3 million to approximately $1.6 million for the three months ended June 30, 2026 from approximately $1.3 million for the three months ended June 30, 2025 primarily due to an increase in the number of miners active at the Oklahoma and Mississippi sites, and the idling of some mining machines during the prior year quarter. Mining costs as a percentage of digital mining revenue increased to approximately 78.2% from approximately 71.3% due to the lower Bitcoin price.
Current report — wording carried from elsewhere
During the three months ended June 30, 2026, the Company generated an approximately $4.6 million net loss before income taxes and the Company increased its income tax valuation allowance by approximately $1.1 million, which offset the Company’s incurred net income tax benefit of approximately $1.1 million which resulted in no income tax expense being recognized for the three months ended June 30, 2026. During the three months ended June 30, 2025, the Company generated an approximately $0.1 million net income before income taxes and the Company increased its income tax valuation allowance by approximately $0.1 million, which offset the Company’s incurred net income tax benefit of approximately $0.1 million which resulted in no income tax expense being recognized for the three months ended June 30, 2025.
Current report — wording carried from elsewhere
Net Loss Attributable to Non-Controlling Interest
Current report — wording carried from elsewhere
Bitcoin mining revenues are determined by two main drivers: quantity of Bitcoin mined and the price of Bitcoin on the date the Bitcoin is mined. During the six months ended June 30, 2026, we mined approximately 54.2 Bitcoin with an average Bitcoin price of approximately $74 thousand as compared to approximately 42.7 Bitcoins with an average Bitcoin price of approximately $96 thousand during the six months ended June 30, 2025. The decrease in Bitcoin mining revenue for the six months ended June 30, 2026 was attributable to a decrease in Bitcoin price, offset in part by the decreased difficulty rate, which increased our share of the global hashrate and an increase in the number of miners actively mining.
Current report — wording carried from elsewhere
Fair Market Adjustment on mined digital assets
Current report — wording carried from elsewhere
Depreciation and amortization for six months ended June 30, 2026 decreased to approximately $1.7 million compared to approximately $4.1 million for the six months ended June 30, 2025 primarily due to the impairment of mining machines in the fourth quarter of 2025.
Current report — wording carried from elsewhere
Loss on fair value of digital assets receivable
Current report — wording carried from elsewhere
The Company incurred an approximately $4.9 million and nil loss on the fair value of the digital assets receivable Bitcoin assets in custody for the Company’s loan facility with Galaxy Digital LLC for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
The Company owns 69.5% of the equity interests of LMFAO Sponsor LLC. As such, there is an approximately ($2) thousand net income for the six months ended June 30, 2026 attributable to the Non-Controlling Interest as compared to an approximately $48 thousand net loss for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Our working capital needs may increase in the future as we continue to expand and enhance our operations. Our ability to raise additional funds for working capital through equity or debt financings or other sources may depend on the financial success of our then current business and successful implementation of our key strategic initiatives, financial, economic and market conditions and other factors, some of which are beyond our control.
Current report — wording carried from elsewhere
As of June 30, 2026, an aggregate gross sales limit of approximately $74.2 million remains available for issuance under the ATM program.