Hut 8 Corp.

In addition to our financial results and generally accepted accounting principles in the United States of America ("GAAP") financial measures, we use certain key performance indicators to evaluate our business, identify trends, and make strategic decisions.

The following table presents our key performance indicators, which are rounded, as of September 30, 2026 and 2025. Prior-year amounts have been recast to conform to the updated definitions of our key performance indicators.

Energy Capacity Under Diligence

Energy Capacity Under Diligence represents greenfield opportunities identified for next-generation, energy-intensive technologies. At this stage, we generally invest limited development capital, representing an immaterial portion of the project's anticipated total development cost, to assess a site's potential by engaging with utilities, landowners, power generators, local, state and regulatory bodies, and other stakeholders to evaluate critical factors, including power availability, infrastructure readiness, fiber connectivity, and overall commercial viability. We monitor Energy Capacity Under Diligence to assess the breadth of our pipeline of potential development sites and to prioritize the allocation of development resources among them. Energy Capacity Under Diligence as of September 30, 2026, was 3,300 MW compared to 1,300 MW as of September 30, 2025. The net increase primarily reflects the addition of newly identified sites, partially offset by sites advancing to subsequent development categories and the removal of sites that no longer met our strategic, commercial, infrastructure, or regulatory criteria.

Energy Capacity Under Exclusivity

Energy Capacity Under Exclusivity represents sites where we have secured site control and completed a suitable power study indicating a viable path to the power and infrastructure required for deployment. We monitor Energy Capacity Under Exclusivity to assess the inventory of sites available for near-term advancement into development as commercial demand and capital availability warrant. Energy Capacity Under Exclusivity was 3,180 MW as of September 30, 2026, compared with approximately 1,255 MW as of September 30, 2025. The net increase primarily reflects the addition of newly identified sites and sites advancing from prior development categories, partially offset by the removal of sites that no longer met our strategic, commercial, infrastructure, or regulatory criteria.

Energy Capacity Under Development

Energy Capacity Under Development represents sites where we are actively investing in development and commercialization by executing definitive land and/or power agreements, advancing site design and infrastructure buildout, and engaging with prospective customers. We monitor Energy Capacity Under Development to assess the capital we have committed to sites in advance of commercialization and to plan the financing, construction, and other resources required as projects approach commercialization. Energy Capacity Under Development as of September 30, 2026 was approximately 49 MW compared to 1,529 MW as of September 30, 2025. The net decrease primarily reflects sites advancing to subsequent development categories.

Energy Capacity Under Construction

Energy Capacity Under Construction represents sites where we have executed definitive commercial agreements and commenced construction activities. This stage includes oversight of contractors, equipment delivery, and commissioning schedules to ensure projects are completed safely, on time, and within budget. We monitor Energy Capacity Under Construction to manage the pace of capital deployment and to track project delivery against contractual customer timelines. Energy Capacity Under Construction as of September 30, 2026 was 1,330 MW, comprised of the 330 MW River Bend site, 500 MW Beacon Point Phase 1 site, and the 500 MW Beacon Point Phase 2 site, compared to zero MW as of September 30, 2025.

Energy Capacity Under Management

Energy Capacity Under Management comprises all power-related assets, including power generation, managed services, ASIC and Central Processing Unit ("CPU") infrastructure, ASIC compute, and non-operational sites. We monitor Energy Capacity Under Management to assess the utilization of our operating assets and to identify capacity that may be redeployed toward higher-value applications or divested. Energy Capacity Under Management was 710 MW as of September 30, 2026, compared to 1,020 MW as of September 30, 2025. The decrease was driven by the divestiture of our formerly consolidated subsidiary, Far North Power Corp. (the "Far North JV") in February 2026, which consisted of four power generation assets in Ontario totaling approximately 310 MW.

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we rely on Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA, which are non-GAAP financial measures, to evaluate our business, measure our performance, and make strategic decisions.

Adjusted EBITDA, inclusive of digital assets mark-to-market

We define Adjusted EBITDA, inclusive of digital assets mark-to-market, as net income or loss adjusted for interest expense, interest income, income tax provision or benefit, depreciation and amortization, our share of unconsolidated joint venture depreciation and amortization, foreign exchange gain or loss, gain or loss on the sale of property, equipment, and other assets, loss or gain on derivatives and other financial liabilities, gain on the sale of the Far North JV, net of transaction costs, gain on other investments, non-recurring transactions, asset contribution costs, income or loss attributable to non-controlling interest, and stock-based compensation expense.

Adjusted EBITDA

We define Adjusted EBITDA as Adjusted EBITDA, inclusive of digital assets mark-to-market, further adjusted to exclude gain or loss on digital assets attributable to Hut 8 Corp., which removes the effect of mark-to-market fluctuations of digital assets held on our balance sheet. Periodic appreciation or depreciation in the fair value of such digital assets is primarily driven by changes in market prices and does not reflect the results from our core operations.

How we use these measures

Our board of directors and management team use Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA to assess our financial performance as these measures allow for the comparison of operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above). For these measures, we exclude gains or losses on the sale of assets and gains or losses on other investments because these items arise from transactions or valuation changes outside our core operating activities and, in management's view, excluding them facilitates comparisons of our operating performance across periods. Adjusted EBITDA further excludes the impact of changes in the fair value of our digital asset holdings, which may otherwise affect the comparability of our financial results across periods. Investors are encouraged to evaluate each adjustment and the reasons our board of directors and management believe these measures provide useful supplemental information.

Limitations

Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA. In evaluating these measures, you should be aware that we may incur expenses in the future that are the same as, or similar to, certain adjustments reflected in the calculation of these measures. Accordingly, the presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

We may modify the calculation or presentation of these measures in the future, and any such modification could be material. These measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results reported in accordance with GAAP. Because other companies, including companies in our industry, may calculate similarly titled measures differently, our non-GAAP measures may not be comparable to those reported by other companies, which limits their usefulness for comparative purposes. For a reconciliation to our most directly comparable financial measure calculated and presented in accordance with GAAP, please see "—Results of Operations" below.

Business Segments

We have four reportable business segments: Power, Digital Infrastructure, Compute, and Other.

Power

The Power business segment consists of Power Generation and Managed Services.

Power Generation

In February 2026, we completed the divestiture of the Far North JV, and accordingly no longer generate revenue from these assets. We previously generated revenue from our interest in the Far North JV, which acquired four natural gas power plants in Ontario, Canada in February 2024. Our ownership interest was initially 80.1% and decreased to 72.8% upon the non-controlling interest holder's exercise of warrants simultaneously with the sale of the Far North JV. The power generation facilities are connected to the Independent Electricity System Operator, which operates Ontario's power grid, and primarily generated revenue from capacity and electricity sales. Revenue generated from capacity and electricity sales was variable and depended on several factors, including generation capacity in the market, the supply and demand for electricity, and the prevailing price of natural gas.

Managed Services

Our Managed Services business provides institutional partners with an end-to-end partnership model for energy infrastructure development, including:

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Project inception: site design, procurement, and construction management;

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Project operationalization: software automation, process design, personnel hiring, and team training;

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Revenue management: utility contracts, hosting operations, and customer management;

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Project optimization: energy portfolio optimization and strategic initiatives; and/or

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Compliance and reporting: finance, accounting, and safety.

Cash flows in our Managed Services business are generated through a fee structure that is typically fixed based on power capacity under management, with reimbursement of passthrough costs. In addition to the fixed fee, under certain agreements, further cash flows may be driven from incentive bonuses and certain energy management services.

As of September 30, 2026, we managed 280 MW of energy capacity under this program at one site in the United States owned by the King Mountain JV.

Starting April 1, 2025, we began operating as the exclusive provider of managed services to American Bitcoin via the execution of a Master Managed Services Agreement ("MSA"). Under the MSA, we provide American Bitcoin with management, oversight, strategy, compliance, operational, and other services for American Bitcoin's mining operations. These operations are colocated at our facilities. The fee structure typically consists of (i) a fixed fee of $1.250/kW-month based on the power capacity of each facility, as well as (ii) designated site-level reimbursements. As American Bitcoin is a consolidated subsidiary, all fees under the MSA are eliminated in consolidation.

The Digital Infrastructure segment consists of ASIC Infrastructure, CPU Infrastructure, and AI Infrastructure.

ASIC Infrastructure

Under our ASIC infrastructure business, we enter into contracts to host and operate mining equipment on behalf of third parties within our facilities. These services include the provision, if applicable, and hosting of mining equipment as well as the monitoring, troubleshooting, repair, and maintenance of such equipment. Revenues from ASIC infrastructure services are generated through fees that may be fixed or based on profit-sharing arrangements, often with reimbursement for certain pass-through costs, such as electricity.

Starting April 1, 2025, we began operating as the exclusive provider of ASIC infrastructure services to American Bitcoin via the execution of a Master Colocation Services Agreement ("CSA"). Under the CSA, we provide ASIC infrastructure services for American Bitcoin's miners at our facilities. The fee structure typically includes (i) a fixed monthly fee that targets a 25% yield on cost of each facility as of the start of the specific service order under the CSA, subject to an annual increase, as well as (ii) infrastructure-related site level reimbursements. As American Bitcoin is a consolidated subsidiary, all fees under the CSA are eliminated in consolidation.

CPU Infrastructure

Through our Hut 8 Canada business, we provide data center colocation solutions, supported by approximately 3 MW of energy capacity and more than 36,000 square feet of geo-diverse data center space across five locations in Canada. These services support customers operating compute, storage, and network workloads across traditional enterprise, B2B, machine learning, visual effects, and AI. Our CPU infrastructure offering is delivered in Mississauga, Ontario; Vaughan, Ontario; Kelowna, British Columbia; and two locations in Vancouver, British Columbia. The facilities are powered predominantly by emission-free energy sources. This business serves computing needs unrelated to ASIC Compute. These data centers are carrier neutral with network diversity and redundancy from multiple telecommunications providers.

Our CPU infrastructure business is based on a fixed-fee model. Customers pay a fixed recurring monthly fee based on a set amount of resources assigned.

AI Infrastructure

We are expanding our Digital Infrastructure platform to support AI and other high-performance computing workloads through purpose-built data centers, beginning with the development of our River Bend campus in Louisiana and our fully contracted Beacon Point campus in Texas.

Compute

Our Compute segment comprises operating businesses that deploy and monetize compute assets across next-generation energy-intensive technology end markets. We generate revenue through the operation of owned compute infrastructure and the provision of compute-based services, with economics driven by hardware utilization, operating efficiency, and market demand. For the periods presented, the Compute business segment consisted of ASIC Compute, Traditional Cloud, and AI Cloud.

ASIC Compute

The ASIC Compute business reflects revenue generated primarily by American Bitcoin.

Our ASIC Compute business spanned six sites as of September 30, 2026, which are primarily occupied by American Bitcoin miners and hosted at facilities supported by our ASIC Infrastructure:

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five sites with facilities we own and/or lease, and operate: (1) Alpha (Niagara Falls, New York), (2) Medicine Hat (Medicine Hat, Alberta), (3) Salt Creek (Orla, Texas), (4) Vega (Amarillo, Texas), and (5) Drumheller (Drumheller, Alberta); and

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one site that we own through a 50% joint venture, King Mountain (McCamey, Texas).

Bitcoin rewards are received from mining activity through third-party mining pool operators, which allow miners to combine their processing power, increasing their chances of solving a block and getting paid by the network. We provide computing power to mining pools, which use this computing power to operate nodes and validate blocks on the blockchain. The pools then distribute our pro-rata share of Bitcoin mined to us based on the computing power we contribute.

On March 31, 2025, we launched American Bitcoin. Beginning April 1, 2025, ASIC Compute operations previously reported under our Compute segment remain under this business but operate generally through our majority-owned subsidiary, American Bitcoin.

On August 5, 2025, American Bitcoin entered into an On-Rack Sales and Purchase Agreement (the "2025 ABTC Bitmain Purchase Agreement") with Bitmain Technologies Georgia Limited (together with its affiliates, "Bitmain") to purchase up to approximately 17,280 Bitmain Antminer U3S21EXPH ASIC miners (collectively, the "Bitmain Miners"), representing a total of approximately 14.86 EH/s. Concurrently with the execution of the 2025 ABTC Bitmain Purchase Agreement, American Bitcoin purchased 16,299 of the Bitmain Miners, representing a total of approximately 14.02 EH/s, for a total purchase price of approximately $314 million, paid through the pledge of Bitcoin at a mutually agreed upon fixed price. In September 2025, American Bitcoin purchased the remaining 981 Bitmain Miners for a total purchase price of $18.9 million, also paid through the pledge of Bitcoin at a mutually agreed upon fixed price. The Bitcoin pledged under the 2025 ABTC Bitmain Purchase Agreement has a redemption period of approximately 24 months from each pledge date.

In March 2026, our site in Drumheller, Alberta was re-energized in anticipation of the delivery and deployment of approximately 11,298 Bitcoin miners purchased by American Bitcoin from Bitmain, representing approximately 3.05 EH/s at approximately 13.5 J/TH, for a total purchase price of $49.4 million, paid through the pledge of Bitcoin at a mutually agreed upon fixed price. The delivery and deployment of these Bitcoin miners was completed in April 2026, increasing American Bitcoin's total owned fleet capacity from approximately 25.1 to approximately 28.1 EH/s while improving overall portfolio efficiency from approximately 16.3 to approximately 16.0 J/TH. The Bitcoin pledged for this purchase has a redemption period of approximately 24 months from the applicable pledge date. American Bitcoin may elect to extend the pledge period for an additional 12 months.

Traditional Cloud

Our Traditional Cloud business reflected revenue generated by Hut 8 Canada. Traditional Cloud services supported both public and private cloud deployments, managed backup, business continuity and disaster recovery services, and high-performance, high-capacity storage solutions, under a consumption-based fee structure in which customers committed to a baseline level of compute, storage, network, or power usage, with usage beyond the baseline typically billed incrementally. During August 2026, we sold the Traditional Cloud business.

AI Cloud

Our AI Cloud assets are deployed under our wholly owned subsidiary, Highrise AI, Inc., at a third-party colocation site near Chicago, Illinois. This business generates recurring revenue through contracts where customers pay for access to graphics processing units ("GPU") compute resources under on-demand or committed-use arrangements.

Other

Our Other reporting segment included activities that fall outside the scope of our Power, Digital Infrastructure, and Compute layers. There was no activity in our Other segment during the periods presented.

Equipment Sales and Repairs

We may sell mining equipment when profitable opportunities arise (e.g., if market prices exceed our procurement cost). We may also repair miners for third parties in exchange for fees, as we have a fully equipped, MicroBT-certified repair center space at our Medicine Hat site.

Results of Operations

Three Months Ended September 30, 2026 and 2025

Adjusted EBITDA reconciliation:

(1)

Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investment in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.

(2)

There were no non-recurring transactions for the three months ended September 30, 2026. Non-recurring transactions for the three months ended September 30, 2025 primarily represent approximately $2.9 million of American Bitcoin related transaction costs.

Revenue

Total revenue was $71.1 million and $83.5 million for the three months ended September 30, 2026 and 2025, respectively, and consisted of Power, Digital Infrastructure, and Compute.

Power

Power revenue was $1.3 million and $8.4 million for the three months ended September 30, 2026 and 2025, respectively. This $7.1 million decrease was primarily driven by a $7.3 million decrease in electricity sales resulting from the sale of the Far North JV in February 2026, compared to a full quarter of the Far North JV activity in 2025.

Digital Infrastructure revenue was $1.4 million and $5.1 million for the three months ended September 30, 2026 and 2025, respectively. This $3.7 million decrease was primarily attributable to a $3.6 million decrease in ASIC colocation revenue following the termination of the Vega colocation agreement when American Bitcoin exercised its option to purchase the miners at the site in August 2025, and a $0.1 million decrease in CPU Infrastructure revenue resulting from customer churn.

Compute

Compute revenue was $68.4 million and $70.0 million for the three months ended September 30, 2026 and 2025, respectively, representing a decrease of $1.6 million. The decrease was primarily driven by a $2.6 million decrease in ASIC Compute revenue, reflecting a decrease in average revenue per Bitcoin mined from approximately $114,121 to approximately $71,087, partially offset by an increase in Bitcoin mined from approximately 578 to approximately 891. The increase in Bitcoin mined was primarily attributable to additional operating capacity following the commencement of ASIC Compute operations at the Vega site in August 2025 and the re-energization of the Drumheller site in March 2026. Traditional Cloud revenue also decreased by $0.7 million, primarily as a result of the sale of that business in August 2026. These decreases were partially offset by a $1.7 million increase in AI Cloud revenue driven by new customer contracts entered into since the third quarter of 2025.

Cost of Revenue

Total cost of revenue was $30.2 million and $32.3 million for the three months ended September 30, 2026 and 2025, respectively, and consisted of Power, Digital Infrastructure, and Compute.

Power

Power cost of revenue was $0.8 million and $6.5 million for the three months ended September 30, 2026 and 2025, respectively. The $5.7 million decrease was primarily attributable to lower costs associated with electricity sales following the divestiture of the Far North JV in February 2026.

Digital Infrastructure cost of revenue was $1.4 million and $3.8 million for the three months ended September 30, 2026 and 2025, respectively. The $2.4 million decrease was primarily attributable to lower pass-through costs under the ASIC colocation agreement with Bitmain at the Vega site as the agreement was terminated in August 2025.

Compute

Compute cost of revenue was $28.0 million and $22.0 million for the three months ended September 30, 2026 and 2025, respectively. This $6.0 million increase was primarily driven by a $6.4 million increase in ASIC Compute costs, reflecting $3.8 million of higher electricity costs from additional operating capacity following the commencement of ASIC Compute operations at the Vega site in August 2025 and the re-energization of the Drumheller site in March 2026. The increase was partially offset by a $0.4 million decrease in Traditional Cloud costs following the sale of that business in August 2026.

Depreciation and Amortization

Depreciation and amortization expense was $40.1 million and $27.8 million for the three months ended September 30, 2026 and 2025, respectively. This $12.4 million increase was primarily driven by (i) $13.1 million of higher depreciation on American Bitcoin's ASIC miners due to a full quarter of depreciation on miners at the Vega site, where ASIC Compute operations commenced in August 2025, additional miners placed in service in October 2025, and the re-energization of the Drumheller site in March 2026, and (ii) $1.9 million of higher depreciation on mining infrastructure associated with the Vega site. These increases were partially offset by a $1.6 million decrease in depreciation of power plant assets following the Far North JV sale in February 2026 and a $1.0 million decrease in depreciation and amortization of other assets, primarily computer and network equipment.

General and Administrative Expenses

General and administrative expenses were $99.6 million and $25.9 million for the three months ended September 30, 2026 and 2025, respectively. The $73.7 million increase was primarily attributable to (i) a $58.4 million increase in stock-based compensation expense primarily due to one-time awards granted in 2025 under our long-term incentive plan, as well as ordinary course awards to attract and retain top talent, (ii) a $7.7 million increase in professional fees primarily due to legal expenses incurred to support the execution of our growth plan, (iii) a $6.2 million increase in salaries and benefits resulting from additional headcount to support our growth initiatives, primarily within our Energy Origination and other growth functions, (iv) a $3.9 million increase in general, marketing and administrative expenses, including higher conference and events costs and rent expense for our new, larger corporate headquarters, and (v) a $0.6 million increase in insurance expense resulting primarily from growth in our asset base. These increases were partially offset by a $2.9 million decrease in transaction costs primarily associated with the merger between Gryphon Digital Mining, Inc. and American Bitcoin (the "ABTC Merger"), which closed in September 2025, and a $0.2 million decrease in other general and administrative expenses.

Gain on Digital Assets

Gain on digital assets was $413.8 million and $76.6 million for the three months ended September 30, 2026 and 2025, respectively. The favorable variance was primarily driven by a greater increase in the price of Bitcoin during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. During the three months ended September 30, 2026, the price of Bitcoin increased from approximately $59,847 to approximately $83,415. During the three months ended September 30, 2025, the price of Bitcoin increased from approximately $107,173 to approximately $114,068.

Other Expense

Other expenses were $77.1 million and $3.0 million for the three months ended September 30, 2026 and 2025, respectively. The $74.0 million increase was primarily attributable to (i) a $96.9 million increase in interest expense resulting from higher average outstanding debt following the issuance of construction and development financings for River Bend Phase 1 and Beacon Point Phase 1, and (ii) a $67.7 million unfavorable change in gains and losses on derivatives and other financial liabilities, primarily due to the fair value remeasurement of Bitcoin redemption rights associated with American Bitcoin's ASIC miner purchases, driven by the increase in the price of Bitcoin and a higher amount of Bitcoin pledged by American Bitcoin. These unfavorable changes were partially offset by (i) a $61.8 million increase in interest income, primarily from investing unused proceeds from the River Bend Phase 1 and Beacon Point Phase 1 construction and development financings in restricted short-term investments to partially offset the interest costs incurred on the related notes, (ii) a $23.7 million gain from the fair value remeasurement of our investment in Ionic Digital Inc. ("Ionic") following its public listing on Nasdaq in July 2026, (iii) a $3.2 million increase in equity in earnings of an unconsolidated joint venture, and (iv) a $1.9 million favorable change in foreign exchange gains and losses.

Income Tax Provision

Our income tax provision was $51.7 million for the three months ended September 30, 2026, compared to our income tax provision of $19.0 million for the three months ended September 30, 2025. This $32.6 million change was primarily driven by deferred taxes related to the gains on digital assets.

Results of Operations

Nine Months Ended September 30, 2026 and 2025

Adjusted EBITDA reconciliation:

(1)

Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investment in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.

(2)

There were no non-recurring transactions for the nine months ended September 30, 2026. Non-recurring transactions for the nine months ended September 30, 2025 represent approximately $7.6 million of American Bitcoin-related transaction costs, and $0.5 million of restructuring costs.

Revenue

Total revenue was $217.0 million and $146.6 million for the nine months ended September 30, 2026 and 2025, respectively, and consisted of Power, Digital Infrastructure, and Compute.

Power

Power revenue was $6.2 million and $18.2 million for the nine months ended September 30, 2026 and 2025, respectively. This $12.1 million decrease was primarily driven by a $12.4 million decrease in electricity sales resulting from the sale of the Far North JV in February 2026, compared to a full period of the Far North JV activity in 2025.

Digital Infrastructure revenue was $4.0 million and $7.9 million for the nine months ended September 30, 2026 and 2025, respectively. The $4.0 million decrease was primarily attributable to a $3.8 million decrease in ASIC colocation revenue following the termination of the Vega colocation agreement with Bitmain when American Bitcoin exercised its option to purchase the miners at the site in August 2025.

Compute

Compute revenue was $206.9 million and $120.4 million for the nine months ended September 30, 2026 and 2025, respectively, representing an increase of $86.4 million. The increase was primarily driven by higher ASIC Compute revenue, reflecting an increase in Bitcoin mined from approximately 1,021 to approximately 2,643, partially offset by a decrease in average revenue per Bitcoin mined from approximately $106,399 to approximately $72,918. The increase in Bitcoin mined was primarily attributable to improved uptime following the fleet upgrade completed in April 2025 at the Salt Creek and Medicine Hat locations, as well as the commencement of ASIC Compute operations at the Vega site in August 2025 and Drumheller in March 2026. The increase also reflected a $3.2 million increase in AI Cloud revenue, driven by new customer contracts entered into since the third quarter of 2025. These increases were partially offset by a $0.9 million decrease in Traditional Cloud revenue due to the sale of that business in August 2026.

Cost of Revenue

Total cost of revenue was $82.7 million and $72.8 million for the nine months ended September 30, 2026 and 2025, respectively, and consisted of Power, Digital Infrastructure, and Compute.

Power

Power cost of revenue was $3.7 million and $15.1 million for the nine months ended September 30, 2026 and 2025, respectively. The $11.4 million decrease was primarily attributable to lower costs associated with electricity sales following the sale of the Far North JV in February 2026, which contributed approximately one month of activity in 2026 compared to a full nine months in 2025.

Digital Infrastructure cost of revenue was $4.4 million and $7.5 million for the nine months ended September 30, 2026 and 2025, respectively. The $3.1 million decrease was primarily attributable to lower pass-through costs under the ASIC colocation agreement with Bitmain at the Vega site following the termination of the agreement in August 2025.

Compute

Compute cost of revenue was $74.6 million and $50.2 million for the nine months ended September 30, 2026 and 2025, respectively. This $24.5 million increase was primarily driven by a $25.0 million increase in ASIC Compute costs, reflecting higher electricity costs from improved uptime following the fleet upgrades completed at the Salt Creek and Medicine Hat sites in April 2025 and additional operating capacity following the commencement of ASIC Compute operations at the Vega site in August 2025 and the re-energization of the Drumheller site in March 2026. The increase was partially offset by a $0.5 million decrease in Traditional Cloud costs following the sale of that business in August 2026.

Depreciation and Amortization

Depreciation and amortization expense was $118.3 million and $62.2 million for the nine months ended September 30, 2026 and 2025, respectively. This $56.2 million increase was primarily driven by $50.6 million of higher depreciation on American Bitcoin's ASIC miners, primarily due to the fleet upgrades completed at the Salt Creek and Medicine Hat sites in April 2025, the commencement of ASIC Compute operations at the Vega site in August 2025, and the re-energization of the Drumheller site in March 2026. The increase also included $13.4 million of higher depreciation on mining infrastructure and related machinery and equipment associated with the construction and energization of the Vega site in June 2025. These increases were partially offset by a $4.9 million decrease in depreciation of power plant assets following the sale of the Far North JV in February 2026, and a $2.9 million decrease in depreciation and amortization of other assets, primarily computer and network equipment.

General and Administrative Expenses

General and administrative expenses were $257.4 million and $77.1 million for the nine months ended September 30, 2026 and 2025, respectively. This $180.3 million increase was primarily attributable to (i) a $149.1 million increase in stock-based compensation expense primarily due to one-time awards granted in 2025 under our long-term incentive plan, as well as ordinary course awards to attract and retain top talent, (ii) a $17.3 million increase in salaries and benefits resulting from additional headcount to support our growth initiatives, primarily within our Energy Origination and other growth functions, (iii) an $11.8 million increase in professional fees, primarily due to higher legal expenses incurred to support the execution of our growth plan, (iv) a $7.7 million increase in general, marketing and administrative expenses, including higher conference and events costs and rent expense for our new, larger corporate headquarters, and (v) a $3.2 million increase in insurance expense resulting primarily from growth in our asset base. These increases were partially offset by a $7.6 million decrease in transaction costs, primarily associated with the merger between Gryphon Digital Mining, Inc. and American Bitcoin, which closed in September 2025, and a $1.2 million decrease in sales tax expense.

Loss (Gain) on Digital Assets

Loss on digital assets was $20.5 million for the nine months ended September 30, 2026, compared to a gain on digital assets of $181.8 million for the nine months ended September 30, 2025. The $202.3 million unfavorable variance was primarily driven by a decrease in the price of Bitcoin during the nine months ended September 30, 2026, compared to an increase during the corresponding period in 2025. During the nine months ended September 30, 2026, the price of Bitcoin declined from approximately $87,498 to approximately $83,415. During the nine months ended September 30, 2025, the price of Bitcoin increased from approximately $93,354 to approximately $114,068.

Other Expense

Other expenses were $11.0 million and $32.7 million for the nine months ended September 30, 2026 and 2025, respectively. This $21.7 million decrease was primarily driven by (i) an $88.8 million increase in interest income from investing unused proceeds from the River Bend Phase 1 and Beacon Point Phase 1 construction and development financings in restricted short-term investments, in order to partially offset the interest costs incurred on the related notes, (ii) a $34.7 million gain on the sale of the Far North JV, net of transaction costs, (iii) a $23.7 million gain from the fair value remeasurement of our investment in Ionic following its public listing on Nasdaq in July 2026, (iv) a $22.8 million decrease in asset contribution costs related to the non-controlling interest portion of our March 31, 2025 contribution of substantially all of our ASIC miners in exchange for 80% of American Data Centers Inc., as part of the launch of American Bitcoin, and (v) a $12.8 million increase in equity in earnings of an unconsolidated joint venture. These favorable changes were partially offset by (i) a $141.4 million increase in interest expense due to higher average outstanding debt following the issuance of construction and development financings for River Bend Phase 1 and Beacon Point Phase 1, (ii) a $12.6 million unfavorable change in gains and losses on derivatives and other financial liabilities, primarily driven by lower gains on Bitcoin call options, partially offset by lower losses from the fair value remeasurement of Bitcoin redemption rights associated with American Bitcoin's ASIC miner purchases, and (iii) a $7.1 million unfavorable change in foreign exchange gains and losses.

Income Tax Benefit (Provision)

Our income tax benefit was $28.7 million for the nine months ended September 30, 2026, compared to our income tax provision of $26.4 million for the nine months ended September 30, 2025. This $55.1 million change was primarily driven by the tax benefit on our pre-tax loss of $269.5 million for the nine months ended September 30, 2026, compared to the tax provision on pre-tax income of $80.2 million for the nine months ended September 30, 2025.

King Mountain JV

The King Mountain JV is a 50/50 joint venture with one of the world's largest renewable energy producers. The King Mountain JV has 280 MW of self-mining and hosting operations located behind-the-meter at a wind farm in McCamey, Texas.

As of September 30, 2026, the King Mountain JV owned approximately 18,000 miners for self-mining (about 1.8EH/s) and hosted approximately 51,589 miners (about 9.9 EH/s) for a single hosting customer at its King Mountain site, which has a total capacity of 280 MW.

We account for the King Mountain JV using the equity method of accounting, resulting in reporting the King Mountain JV as an unconsolidated joint venture. Additionally, our 50% portion of any distributions from the King Mountain JV was used to pay down the TZRC Secured Promissory Note. In October 2026, we repaid the outstanding balance of the TZRC Secured Promissory Note in full. See Note 9. Investment in unconsolidated joint venture and Note 11. Loans, notes payable, and other financial liabilitiesto the Unaudited Condensed Consolidated Financial Statements found elsewhere in this Quarterly Report for additional information on the King Mountain JV and TZRC Secured Promissory Note.

Below are the condensed consolidated income statements for the King Mountain JV for the three and nine months ended September 30, 2026 and 2025.

Our board of directors and management team also evaluate Adjusted EBITDA for the King Mountain JV, which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before depreciation and amortization and interest income. We use Adjusted EBITDA to assess the King Mountain JV's financial performance because it allows us to compare the operating performance on a consistent basis across periods by removing the effects of the King Mountain JV's capital structure.

Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. This non-GAAP financial measure should not be considered as an alternative to the most directly comparable GAAP financial measure. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.