AIB Data Centers Inc.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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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 13, 2026
AIB$0.72+9.2%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.
0001213900-26-056983
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001213900-26-089151
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 87 previous paragraphs and 128 current paragraphs.
43 unchanged; 24 reworded; 58 added; 19 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 21 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 (58)
Current report
Effective June 25, 2026, the Company changed its corporate name from BlockchAIn Digital Infrastructure, Inc. to AIB Data Centers Inc.
Current report
AIB is a power-first developer and operator of purpose-built data center infrastructure for artificial intelligence (“AI”) and high-performance computing (“HPC”) workloads. The Company’s strategic focus is the development, construction and operation of AI/HPC data center campuses supported by long-term customer contracts and dedicated power supply arrangements, beginning with its approximately 65 megawatt (“MW”) CLT-01 Campus (the “CLT-01 Campus”) in South Carolina, which is currently in development. The CLT-01 Campus is being developed at the site of the Company’s existing 40 MW data center facility, which has historically provided hosting services and equipment leasing to third-party bitcoin mining customers and which the Company is repurposing with site improvements to serve as its first AI/HPC campus.
Current report
The Company currently generates substantially all of its revenue from bitcoin hosting arrangements at the current site. The Company expects its future revenue to be generated primarily from long-term AI/HPC hosting and colocation contracts at the CLT-01 Campus and at additional greenfield AI/HPC development projects the Company may pursue. The historical results of operations described elsewhere in this Item 2 reflect the de-energized site and may not be indicative of the Company’s future results of operations following commissioning of the CLT-01 Campus and execution of the Company’s AI/HPC strategy. See “Strategic Transformation” and “Recent Developments” below.
Current report
Strategic Transformation
Current report
The Company has undergone a significant strategic and operational transformation over the past twelve months, evolving from a legacy bitcoin mining hosting business into a developer and operator of purpose-built AI/HPC data center infrastructure. Key steps in this transformation include (i) the completion of the Company’s business combination with Signing Day Sports, Inc. in March 2026 and the Company’s listing on the NYSE American under the ticker symbol “AIB”; (ii) the Company’s corporate rebranding from BlockchAIn Digital Infrastructure, Inc. to AIB Data Centers Inc., effective June 25, 2026; (iii) the completion of the June 2026 underwritten public offering of common stock that generated approximately $63.25 million in gross proceeds, materially strengthening the Company’s balance sheet; (iv) the formation of AIB CLT1 LLC on June 23, 2026 as the special-purpose project subsidiary for the CLT-01 Campus; (v) the execution of a new long-term electric service agreement providing for 65,000 kVA of contract demand at the CLT-01 Campus; and (vi) the diversification of the site’s hosting customer mix beyond a single anchor tenant.
Current report
The Company expects its ongoing transformation to include the continued development, construction and commissioning of the CLT-01 Campus; the negotiation and execution of long-term customer contracts, project-level financings, construction contracts and equipment procurement arrangements required to support the CLT-01 Campus and additional greenfield development opportunities; the evaluation of additional AI/HPC campus development opportunities, including the potential 75 MW AI-focused campus in Minnesota described under “Recent Developments” below; and the eventual transition, retrofit or decommissioning of the site as the Company’s AI/HPC platform scales. See “Growth Strategy,” “Key Factors Affecting Our Financial Performance” and “Recent Developments” below.
Current report
The Company’s initial AI/HPC campus, CLT-01, is being developed at an existing, energized site rather than through greenfield construction. The site is already grid-interconnected, zoned for industrial and data center use, and equipped with carrier-neutral connectivity, and has operated as an approximately 40 MW facility that the Company is repurposing to approximately 65 MW of contracted utility capacity. Because power availability and utility interconnection timelines have become the primary constraints on new AI/HPC development in most major U.S. markets, the Company believes that converting existing powered land into AI/HPC capacity offers a materially faster and more capital-efficient path to energization than greenfield development. The Company intends to apply this same power-first discipline to its broader development pipeline, which includes both additional repurposing opportunities and greenfield sites, in each case prioritizing deliverable utility capacity as a precondition to significant capital commitment.
Current report
Demand for data center capacity has undergone a step-change over the past several years, driven principally by the rapid scaling of artificial intelligence and other high-performance computing workloads. The training and deployment of large-scale AI models by hyperscale cloud providers, foundation model developers and a growing class of specialized AI infrastructure operators (sometimes referred to as “neoclouds”) has become the dominant driver of new data center capacity requirements globally, and public disclosures by the largest hyperscale operators indicate that aggregate capital expenditure on AI-related compute infrastructure has expanded materially and is expected to remain elevated for the foreseeable future.
Current report
Power availability has emerged as the primary constraint on the development of new AI/HPC data center capacity in most major U.S. markets. Utility interconnection queues, transmission constraints and generation-adequacy concerns have extended lead times for large new industrial loads to multiple years in a number of regions, including Northern Virginia, portions of the Electric Reliability Council of Texas (or “ERCOT”) market in Texas, and portions of Pennsylvania-New Jersey-Maryland Interconnection (or “PJM”) and Midcontinent Independent System Operator (or “MISO”). As a result, developers with the ability to secure long-term, dedicated power capacity in geographies with relative power availability, including select markets in the Southeastern United States, have an increasingly differentiated position, and the ability to deliver a fully-powered, purpose-built site on a predictable timeline is now widely regarded as more valuable than site-level or building-level features that historically drove customer selection.
Current report
The technical requirements of modern AI training and inference workloads are also driving a fundamental shift away from legacy multi-tenant colocation designs toward purpose-built, high-density facilities. Legacy enterprise and colocation data centers were typically designed to support rack densities of approximately 5 to 15 kilowatts, while current-generation GPU-based AI training deployments commonly require densities ranging from approximately 40 kilowatts per rack to well in excess of 100 kilowatts per rack, with next-generation accelerator platforms expected to push those requirements higher. Supporting these densities has required broad adoption of direct-to-chip and immersion liquid cooling, higher-capacity electrical distribution and structural site design choices that most legacy facilities cannot economically accommodate through retrofit.
Current report
The commercial structure of AI/HPC hosting arrangements has also evolved. In contrast to the shorter-term, retail-oriented colocation contracts that historically prevailed in the multi-tenant colocation market, AI/HPC customers increasingly enter into long-term capacity agreements, typically ten years or longer, with fixed monthly service charges, parent-level or affiliate credit support, and structured deposit, prepayment or letter-of-credit mechanics. These contract structures are designed to underwrite the substantial capital investment required to develop purpose-built AI/HPC capacity and, in management’s view, are establishing AI/HPC data center capacity as a long-duration, contracted-revenue digital infrastructure asset class.
Current report
Management believes that several long-term industry trends, including the continued scaling of AI training and inference workloads, elevated hyperscaler and neocloud capital expenditure, structural power availability constraints in traditional data center markets, the shift to purpose-built high-density design, and the emergence of long-dated contracted revenue structures, are expected to continue driving demand for the type of power-anchored, purpose-built AI/HPC data center infrastructure the Company is developing. Management believes that the Company’s power-first development strategy, its CLT-01 site with long-term dedicated power capacity, and its focus on long-term contracted customer relationships position the Company to participate in this demand.
Current report
The Company’s growth strategy is anchored by its 65 MW CLT-01 Campus and is designed to scale into a multi-site AI/HPC data center platform in the United States over the next several years. In evaluating and pursuing new sites, the Company applies a “power-first” development discipline that requires deliverable utility capacity, evidenced by an executed electric service agreement, power purchase agreement or equivalent, as a precondition to significant capital commitment, together with a control mechanism over the underlying land, a defined interconnection path, and a site suitable for high-density, purpose-built development.
Current report
As of the date of this Quarterly Report, the Company has identified an active development pipeline of approximately 570 MW of AI/HPC capacity across six sites, comprising the CLT-01 Campus and the additional sites described below. The stage of development, contractual status, expected timing and ultimate capacity of each pipeline site vary and are subject to significant execution and financing risk, as further described under “Growth Strategy”. Except for the CLT-01 Campus, none of the pipeline sites described below is subject to a definitive lease, purchase or development agreement as of the date of this Quarterly Report.
Current report
Development of new AI/HPC data center capacity is capital-intensive and typically requires substantial upfront investment in land, power delivery, buildings, mechanical, electrical and cooling systems, IT infrastructure and long lead-time equipment. The Company expects to fund these investments through a combination of customer deposits, prepayments and other security under long-term customer contracts; project-level and asset-level debt financing; equity or equity-linked issuances; and cash on hand. Depending on the circumstances of a particular project, expansion transactions may take the form of purchases of real property, long-term ground or facility leases, joint ventures with customers or financial partners, or acquisitions of operating or development-stage assets. Certain of these transactions may be undertaken with strategic partners or anchor customers in order to align economic interests, share development risk or reduce the Company’s upfront capital outlay.
Current report
There can be no assurance that any of the pipeline sites described above will be completed on the timeline currently anticipated, in the capacity currently anticipated, or at all, or that the Company will achieve the operating or financial results currently expected from these sites.
Current report
The Company’s near-term growth strategy centers on the development, construction, commissioning and operation of the CLT-01 Campus, which the Company expects to serve as the anchor asset of its AI/HPC platform and to generate long-term contracted revenue at scale following commissioning. As part of this strategy, the Company has (i) formed AIB CLT1 LLC as the project-level subsidiary that is expected to hold the CLT-01 Campus assets, contracts and financings; (ii) secured a new long-term electric service agreement providing for 65,000 kVA of contract demand at the CLT-01 Campus; and (iii) begun evaluating additional greenfield AI/HPC development opportunities, including the potential 75 MW campus in Minnesota described under “Recent Developments” below.
Current report
Execution of the Company’s growth strategy will require significant capital investment and depends on a number of factors, many of which are outside the Company’s control, including (i) the negotiation and execution of definitive long-term customer contracts, construction contracts, equipment procurement arrangements and financing agreements on acceptable terms; (ii) the timely delivery of long lead-time electrical, mechanical, cooling, generator and IT infrastructure equipment; (iii) permitting, interconnection and other regulatory approvals; (iv) the availability of skilled construction and operations labor in the relevant markets; and (v) the performance of the Company’s counterparties. The Company has not yet commissioned any purpose-built AI/HPC capacity and has not yet generated revenue from long-term AI/HPC customer contracts. There can be no assurance that the Company will complete the CLT-01 Campus or any other planned project on the timeline or on the terms currently contemplated, or achieve the operating or financial results currently expected from its AI/HPC strategy.
Current report
The Company is currently in negotiations with a single prospective tenant for a long-term lease covering the entire approximately 65 MW of capacity at the CLT-01 Campus. This represents an expansion in scope from the arrangements previously disclosed in the Company’s Registration Statement on Form S-1 (File No. 333-296413), which contemplated draft lease agreements covering approximately 26 MW of utility load (20 MW of IT load) with a global cloud provider and a non-binding letter of intent for an additional approximately 5 MW. Asof August 13, 2026, the parties had not executed a definitive lease, and execution remains subject to the negotiation and completion of definitive documentation, technical and commercial diligence, credit review, financing arrangements and other customary conditions. The Company has not yet commenced service under, or generated revenue from, any long-term AI/HPC customer contract, and there can be no assurance that a definitive lease will be executed on the timeline or terms currently contemplated, or at all.
Current report
Execution of AI/HPC Development Strategy
Current report
The Company’s future financial performance depends primarily on its ability to successfully develop, construct, commission and operate its planned AI/HPC data center capacity, beginning with the CLT-01 Campus, and to enter into long-term customer contracts for that capacity on economic terms consistent with the Company’s expectations. The Company’s AI/HPC development strategy targets campuses of less than 150 MW leased primarily to specialized AI cloud providers, sometimes referred to as “neoclouds,” rather than to hyperscale cloud or internet platform tenants. This segment of the market has different leasing characteristics than the hyperscale segment. Capacity is generally leased on the basis of critical IT load, with rent quoted in dollars per kilowatt of reserved power per month rather than per square foot. Based on third-party industry data, large-scale deployments in primary North American markets have recently transacted in a range of approximately $140 to $160 per kilowatt of critical IT load per month, equivalent to approximately $1.7 million to $1.9 million per megawatt per year, with average asking rates for wholesale colocation capacity of approximately $196 per kilowatt per month for smaller deployments in the second half of 2025.
Current report
Because the Company has not yet commissioned any purpose-built AI/HPC capacity and is in the early stages of executing its AI/HPC development strategy, the Company’s historical and current results of operations are not indicative of the Company’s expected future results following commissioning of the CLT-01 Campus and execution of the Company’s AI/HPC strategy. The Company’s ability to execute on this strategy is subject to a number of significant risks and uncertainties, including those described under “Growth Strategy” above and in the Company’s risk factors.
Current report
Transition of Hosting Operations
Current report
The Company’s reported revenue, gross margin, Adjusted EBITDA and net loss for the periods presented in this Quarterly Report have been generated primarily by bitcoin mining hosting arrangements. The Company expects revenue from those hosting arrangements to decline over time as customer contracts expire or are restructured, as the site is eventually transitioned, retrofitted or decommissioned to support the Company’s AI/HPC platform, and as new AI/HPC capacity at the CLT-01 Campus and other planned projects is placed into service. The timing and magnitude of these changes are inherently uncertain. During the transition period, the Company’s reported results are expected to continue to reflect the operating economics of the site and to be materially affected by the factors described under “Market Price of Digital Assets,” “Electricity Costs” and “Our Competition and Customers” below. Investors should not view the Company’s historical or current results as indicative of the Company’s future results following execution of its AI/HPC strategy.
Current report
The Company expects revenue and gross profit from legacy hosting arrangements to continue to decline as it advances the CLT-01 Campus, and expects its results of operations in future periods to be determined principally by the timing of commissioning and the execution of long-term AI/HPC customer contracts.
Current report
The Company’s historical results of operations, and its results of operations for the periods presented in this Quarterly Report, reflect hosting services provided to third-party bitcoin mining customers. Those customers’ willingness and ability to continue operating, and, indirectly, the revenue the Company generates from them during the transition period, depends in part on the profitability of bitcoin mining, which is itself a function of the spot price of bitcoin, network mining difficulty, block reward economics following the April 2024 halving, and the customers’ individual power costs and mining equipment efficiency. The price of bitcoin has historically been, and is expected to continue to be, subject to substantial volatility.
Current report
Because the Company is transitioning away from bitcoin mining hosting and toward AI/HPC infrastructure, and because the Company’s future revenue is expected to be generated primarily by long-term AI/HPC customer contracts at the CLT-01 Campus and future greenfield sites, the management believes the Company’s future financial performance will be materially less sensitive to fluctuations in the prices of digital asset than its historical performance. However, until hosting arrangements have wound down and new AI/HPC capacity has been placed into service, sustained declines in the price of bitcoin, sustained increases in network mining difficulty, or other factors that materially reduce the profitability of the Company’s hosting customers could accelerate the decline in revenue, reduce the Company’s ability to renew or restructure hosting arrangements on favorable terms, and could have a material adverse effect on the Company’s near-term results of operations, in each case notwithstanding the Company’s strategic transition. See “Transition of Hosting Operations” above.
Current report
We face significant competition across the HPC hosting value chain, including for (i) sites with access to reliable, low-cost high-density power, (ii) the capital required to develop or retrofit such sites, (iii) long-lead critical equipment (including power distribution, transformers, switchgear, and liquid-cooling systems), and (iv) skilled development, construction, and operations personnel. Our competitors include data center REITs, purpose-built HPC and AI infrastructure developers, hyperscalers building or leasing capacity for their own use, and bitcoin miners repurposing existing sites for HPC hosting.
Current report
Public Offering of Common Stock
Current report
On June 5, 2026, the Company entered into an underwriting agreement with Lucid Capital Markets, LLC in connection with an underwritten public offering of 33,333,334 shares of its common stock at a public offering price of $1.65 per share. The offering closed on June 8, 2026. In addition, the Company granted the underwriter a 45-day option to purchase up to an additional 4,999,999 shares of common stock. On June 15, 2026, Lucid exercised the over-allotment option in full. On June 17, 2026, the Company closed its sale of an additional 4,999,999 shares of common stock in connection with the full exercise of the over-allotment option. As a result, the Company issued an aggregate of 38,333,333 shares of common stock and received gross proceeds of approximately $63.25 million before underwriting discounts, commissions, and other offering-related expenses.
Current report
The Company intends to use the net proceeds from the offering for working capital, deposits on long lead-time equipment, land acquisition activities, capital expenditures associated with the development of its digital infrastructure platform, and other general corporate purposes. The offering significantly enhanced the Company’s liquidity position and provides additional capital to support the Company’s strategic focus on the development of infrastructure for artificial intelligence and high-performance computing workloads.
Current report
The Company believes the proceeds from the public offering provide funding necessary to advance its strategic transition toward AI and HPC-focused infrastructure and support the development of future data center capacity. Management expects a portion of the proceeds to be used to support infrastructure investments associated with the Company’s planned expansion initiatives, including the Minnesota development opportunity and the recently executed long-term power arrangement in South Carolina.
Current report
Minnesota Development Opportunity
Current report
During the second quarter of 2026, the Company entered into a non-binding letter of intent and paid a refundable $1.2 million deposit related to a potential development site in Minnesota. The Company is evaluating the development of an approximately 75 MW AI-focused data center campus at the location. No definitive acquisition, lease or development agreements have been executed as of June 30, 2026, and the project remains subject to negotiation of definitive agreements, financing availability and customary approvals. The deposit is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheet as of June 30, 2026.
Current report
The estimated true-up accrual was $151,247 and $545,260 as of June 30, 2026 and 2025, respectively, and is recorded in accounts payable and accrued expenses. The 2025 actual true-up charge was received during the quarter for $933,620 and is recorded in accounts payable and accrued expenses. Of the $933,620 actual true-up charge, $101,132 was related to interest. Other costs included in cost of revenues include fees for network services and water fees.
Current report
Formation of AIB CLT1 LLC
Current report
On June 23, 2026, the Company formed AIB CLT1 LLC as a wholly-owned limited liability company subsidiary to serve as the special-purpose project entity for the development, ownership and operation of the CLT-01 Campus. AIB CLT1 LLC is expected to hold the project-level real property interests, ground lease, material customer, construction, equipment procurement and vendor contracts, and project-level financings relating to the CLT-01 Campus. The financial position and results of operations of AIB CLT1 LLC are consolidated in the Company’s condensed consolidated financial statements from the date of formation.
Current report
Transition and Decommissioning of Bitcoin Mining Hosting Operations
Current report
On June 5, 2026, the Company de-energized the site’s bitcoin mining hosting operations following a decline in the price of bitcoin, which had fallen from over $93,000 at the start of 2026 to approximately $62,000 on that date, rendering the Company’s hosting arrangements uneconomic at prevailing customer hashprice levels. The price of bitcoin has remained between approximately $60,000 and $65,000 through the date of this filing. The site remained de-energized as of June 30, 2026, and as of August 13, 2026, the Company has not resumed hosting operations at the site.
Current report
The de-energization coincides with the Company’s strategic transition to AI/HPC hosting. Development of the 65 MW CLT-01 Campus is proceeding independently of the shutdown of the site’s bitcoin mining hosting operations. As of June 30, 2026, the Company had not committed to a formal plan of abandonment, retirement or asset disposal with respect to the site, and no asset impairment, asset retirement obligation, restructuring liability or held-for-sale classification has been recorded in connection with the transition as of the balance sheet date. The Company continues to execute upon the strategy of redeploying the site’s power and infrastructure to support higher-density AI and HPC workloads in coordination with the CLT-01 Campus. Any such future actions may result in the recognition of asset retirement obligations, accelerated depreciation, impairment charges or other transition-related costs in future periods, the amounts and timing of which cannot be reasonably estimated at this time.
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Removed paragraphs (19)
Previous report
BlockchAIn is engaged in data center operations, digital asset infrastructure services and providing hosting services for digital asset mining operators. The Company primarily operates a 40 megawatt (“MW”) data center facility in Spartanburg County, South Carolina, providing power infrastructure, hosting services, and equipment leasing to customers engaged in blockchain computing, artificial intelligence (“AI”), and high-performance data processing.
Previous report
The Company’s core operations include hosting services and the leasing of space, power capacity and equipment within its data center facility to customers requiring computing power.
Previous report
The global data center industry has experienced sustained growth over the past decade as enterprises increasingly rely on digital infrastructure to support cloud computing, data-intensive applications, and the continued growth of internet traffic. Organizations are generating and processing significantly larger volumes of data while simultaneously adopting distributed IT architectures designed to improve scalability, performance and resiliency.
Previous report
A growing number of organizations are transitioning toward outsourcing their data center requirements to third-party providers in order to reduce capital expenditures, increase operational flexibility, and gain access to specialized infrastructure and connectivity ecosystems. Carrier-neutral multi-tenant data centers (“MTDCs”), which provide colocation space, power, cooling, physical security, and access to multiple network providers and cloud platforms, have become an increasingly important component of global digital infrastructure.
Previous report
More recently, the rapid adoption of artificial intelligence, machine learning and other high-performance computing workloads has begun to materially increase demand for data center capacity capable of supporting high-density computing environments. These workloads require substantial power availability, advanced cooling systems and highly reliable infrastructure, which has increased the importance of purpose-built facilities designed to support higher power densities.
Previous report
Management believes that several long-term industry trends — including enterprise digital transformation, the continued growth of cloud computing, increasing demand for interconnection between digital platforms, and the emergence of AI-driven workloads — are expected to continue driving demand for outsourced data center infrastructure. Management believes the Company’s operational capabilities and infrastructure position it to participate in the growing demand for data center capacity in its markets.
Previous report
We continually evaluate opportunities to leverage our existing data center assets to support artificial intelligence, high-performance computing (“HPC”) and other emerging data-intensive computing workloads. Strategically, we will continue to look at attractive opportunities to grow our market share and selectively improve our footprint and offerings. Our expansion criteria depend on a number of factors, including but not limited to demand from new and existing customers, power availability and capacity, quality of design, access to networks, clouds and software partners, capacity availability in the current market location, the amount of incremental investment required, automation capabilities, developer talent pool, lead-time to break even on a free cash flow basis and in-place customers. Depending on the circumstances, these transactions may require additional capital expenditures funded by upfront cash payments or through long-term financing arrangements. Property expansion may take the form of purchases of real property, long-term leasing arrangements or acquisitions, and may be completed by us or with partners or potential customers in order to minimize cash outlay.
Previous report
Our growth strategy focuses on transitioning from a primarily hosting-based model to expanding our owned and operated infrastructure and diversifying into HPC markets to enhance revenue generation and profitability.
Previous report
Our customers who operate in our data center are heavily dependent on the spot price of bitcoin. The prices of digital assets, specifically bitcoin, have experienced substantial volatility, meaning that high or low prices may have little or no relationship to identifiable market forces, may be subject to rapidly changing investor sentiment, and may be influenced by factors such as technology, regulatory void or changes, fraudulent actors, manipulation, and media reporting. Bitcoin (as well as other digital assets) may have value based on various factors, including their acceptance as a means of exchange by consumers, scarcity and market demand .
Previous report
Our financial performance and continued growth depend in large part on our customers’ ability to mine for digital assets profitably and on our ability to attract customers for our digital asset hosted mining services. Increases in power costs or the inability of our customers to mine digital assets efficiently and to sell digital assets at favorable prices will reduce customer operating margins, may impact our ability to attract customers and could have a material adverse effect on our business, financial condition and results of operations. While historical trends suggest increasing adoption of digital assets and blockchain technology, historical trends are not indicative of future adoption, and adoption may slow, take longer to develop or never be broadly adopted.
Previous report
Business Mix Shift to HPC
Previous report
The planned growth of our HPC data center hosting operations, through increased investment in conversion of our existing sites to HPC capacity over the next several years, is expected to gradually reduce our overall exposure to volatility in the spot price of bitcoin as HPC begins to account for a larger percentage of our financial results. The HPC data center hosting business is generally characterized by long-term contracts with customers, providing more stable and predictable revenue and cash flows over each period.
Previous report
In hosting services we compete with other providers of high-power data center capacity, including major data center real estate investment trusts (“REITs”), data center developers, hyperscalers and bitcoin miners with capacity suitable for HPC hosting. This competition focuses primarily on the identification and acquisition of new, high-power sites, and includes competition for the capital required to build or modify existing sites to support HPC hosting. The modification of our existing data centers to accommodate HPC hosting also requires the procurement of critical equipment, technologies and skilled labor that are in high demand from other entities seeking to address the same market opportunity.
Previous report
Antbox Asset Acquisition
Previous report
In May 2025, VCV Digital Infrastructure Holdings, a related party, entered into a purchase agreement to acquire 100% of the equity interest in Blue Ridge Digital Mining, making it a wholly-owned subsidiary. Concurrently with that transaction, the Company entered into a Purchase and Sale Agreement with Blue Ridge Digital Mining to acquire 60 Antbox containers for total contractual consideration of $2,332,000, payable in 24 equal monthly installments of $97,167 beginning August 15, 2025 and ending July 15, 2027. This transaction allowed the Company to restructure its tenancy composition and agreements to optimize profitability and to diffuse customer concentration credit risk by diversifying beyond a single anchor tenant. Management has concluded that the transaction qualifies as an asset acquisition under U.S. GAAP, as substantially all of the fair value is concentrated in a group of similar tangible assets (Antbox containers) based on valuations determined using the cost approach.
Previous report
Asset Optimization and Container Sales
Previous report
During the first quarter of 2025, the Company completed the sale of all remaining modular mining containers. These assets had previously been classified as held for sale, and their disposition reflected the Company’s focus on streamlining operations and reallocating resources toward core infrastructure.
Previous report
The true-up expense was $262,906 for the three months ended March 31, 2026 and a reduction in expense of $291,717 for the three months ended March 31, 2025. The true-up estimated cost accrual was $734,325 as of March 31, 2026 which is comprised of $471,329 related to the estimated true-up as of December 31, 2025 and the estimated true-up of $262,906 recorded as of March 31, 2026. Since the true-up credit or charge had not yet been received, there had not yet been an actual true-up credit adjustment or charge for the three months ended March 31, 2026 or 2025. Other costs included in cost of revenues include fees for network services and water fees.
Previous report
Revenue for the three months ended March 31, 2026 was $4.9 million, an increase of $0.4 million, or 9%, from $4.5 million for the three months ended March 31, 2025. The increase reflects a change in the customer mix following the Company’s diversification beyond a single anchor tenant, partially offset by capped energy usage and curtailment credits arising from standstill arrangements with the Company’s primary historical customer, Blue Ridge Digital Mining, which reduced billable usage of the Company’s services.
Reworded paragraphs (24)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements that are based on current expectations, estimates, and assumptions and involve risks and uncertainties, including, but not limited to, our plans, objectives, expectations, and intentions. Actual results and the timing of events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.
Current wording
The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. This quarterly report includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, that relate to future events or to our future operations or financial performance. This discussion contains forward-looking statements that are based on current expectations, estimates, and assumptions and involve risks and uncertainties, including, but not limited to, our plans, objectives, expectations, and intentions. Actual results and the timing of events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.
Previous wording
All dollar amounts referred to in this discussion and analysis are expressed in United States dollars, except where otherwise indicated. References in this section to “we,” “our,” “us,” “BlockchAIn,” and the “Company” generally refer to BlockchAIn Digital Infrastructure, Inc. and its consolidated subsidiaries, which include One Blockchain LLC, One Blockchain Nolan LLC (a wholly-owned subsidiary of One Blockchain LLC), and Signing Day Sports, Inc. (which became a wholly-owned subsidiary on March 16, 2026 in connection with the Business Combination described below).
Current wording
All dollar amounts referred to in this discussion and analysis are expressed in United States dollars, except where otherwise indicated. References in this section to “we,” “our,” “us,” “AIB,” and the “Company” generally refer to AIB Data Centers Inc. and its consolidated subsidiaries, which include One Blockchain LLC, One Blockchain Nolan LLC (a wholly-owned subsidiary of One Blockchain LLC), Signing Day Sports, Inc. (which became a wholly-owned subsidiary on March 16, 2026 in connection with the Business Combination described below), and AIB CLT1 LLC (which was formed as a wholly-owned subsidiary of AIB Data Centers Inc. on June 23, 2026).
Previous wording
Market Price of Digital Assets
Current wording
Market Price of Digital Assets — Legacy Operations Exposure
Previous wording
The success of our HPC hosting business depends on our ability to retain and develop opportunities with existing customers, secure additional infrastructure and attract new customers. Our business environment is constantly evolving, and we face significant competition in every aspect of our business, including the acquisition of new miners, the ability to raise capital, obtaining low-cost electricity, obtaining access to sites with reliable sources of high power, and evaluating new technology developments in the industry.
Current wording
The success of our HPC hosting business depends on our ability to develop new capacity, retain and expand relationships with existing customers, and attract new customers.
Previous wording
We believe that our operational high-power data center capacity, together with the experience, knowledge, capabilities and relationships of our development and operations team, position us to address the current strong demand for HPC capacity.
Current wording
We believe our contracted high-power capacity at CLT-01 currently under development, together with the experience and relationships of our development and operations team, position us to compete for the current strong demand for HPC hosting capacity.
Previous wording
Cost of revenue and gross margin. The largest components of our cost of revenues are utility-related expenses, including electricity, bandwidth access and other infrastructure costs. Cost of revenues totaled $4.3 million for the three months ended March 31, 2026, an increase of $1.0 million, or 30%, compared to $3.3 million for the three months ended March 31, 2025.
Current wording
Cost of revenue and gross margin. The largest components of our cost of revenues are utility-related expenses, including electricity, bandwidth access and other infrastructure costs. Cost of revenues totaled $3.4 million for the three months ended June 30, 2026, a decrease of $0.8 million, or 18%, compared to $4.2 million for the three months ended June 30, 2025.
Previous wording
Gross profit declined to $0.6 million for the three months ended March 31, 2026, compared to $1.2 million for the same period in 2025, a decrease of approximately $0.6 million. Gross margin decreased to approximately 12% for the three months ended March 31, 2026 from approximately 27% for the same period in 2025. Fluctuations in gross profit are largely affected by two principal factors:
Current wording
Gross profit declined to a loss of $0.5 million for the three months ended June 30, 2026, compared to profit of $0.5 million for the same period in 2025, a decrease of approximately $1.0 million. Gross margin decreased to a loss of approximately 18% for the three months ended June 30, 2026 from approximately 12% for the same period in 2025. Fluctuations in gross profit (loss) are largely affected by two principal factors:
Previous wording
The decrease in gross profit was primarily attributable to increased energy costs, which were not able to be passed through to customers. The decrease in gross profit was partially offset by a modest year-over-year increase in billable energy volume. Total energy volume billed to customers increased to approximately 77 GWh for the three months ended March 31, 2026 from approximately 72 GWh for the three months ended March 31, 2025.
Current wording
The decrease in gross profit was primarily attributable to increased energy costs, which were not able to be passed through to customers. Total energy volume billed to customers decreased to approximately 46 GWh for the three months ended June 30, 2026 from approximately 69 GWh for the three months ended June 30, 2025.
Previous wording
Net loss was $0.3 million for the three months ended March 31, 2026, compared to net income of $0.5 million for the three months ended March 31, 2025, a swing of approximately $0.8 million from net income to net loss, driven by the items discussed above.
Current wording
Net loss was $3.5 million for the three months ended June 30, 2026, compared to net loss of $0.5 million for the three months ended June 30, 2025, an increase in net loss of approximately $3.0 million, driven by the items discussed above.
Previous wording
Operating expenses. Total costs and operating expenses were $5.2 million for the three months ended March 31, 2026, or 106% of total revenues, compared to $4.1 million, or 91% of total revenues, for the three months ended March 31, 2025. The increase of $1.1 million, or 27%, was primarily attributable to a $1.0 million increase in cost of revenues reflecting higher per-kWh energy costs and slightly higher billable volume.
Current wording
Operating expenses. Total costs and operating expenses were $11.7 million for the six months ended June 30, 2026, or 149% of total revenues, compared to $9.4 million, or 101% of total revenues, for the six months ended June 30, 2025. The increase of $2.3 million, or 25%, was primarily attributable to a $1.8 million increase in selling, general, and administrative related to advisory shares consulting arrangements, public company costs, and transaction-related expenses as well as a $0.3 million increase in cost of revenues reflecting higher per-kWh energy costs despite lower billable volume and energy consumption resulting from the de-energization of the site. Cost of revenues also increased due to the impact of the 2025 true-up costs. Depreciation expense also accounted for $0.1 million of the increase as well as $0.1 million in advertising expenses.
Previous wording
Operating loss was $0.3 million for the three months ended March 31, 2026, compared to operating income of $0.4 million for the three months ended March 31, 2025, a swing of approximately $0.7 million. The change was primarily driven by the gross-margin compression discussed above.
Current wording
Operating loss was $3.9 million for the six months ended June 30, 2026, compared to operating loss of $0.1 million for the six months ended June 30, 2025, a swing of approximately $3.8 million. The change was primarily driven by the gross-margin compression discussed above with the largest contributor being the de-energization of the site in response to a decline in the price of bitcoin coupled with the unanticipated larger true up energy expense from 2025 passed along in 2026.
Previous wording
There was a small amount of other income for the three months ended March 31, 2026 consisting of interest income, compared to other income of $0.1 million for the three months ended March 31, 2025 primarily attributable to the gain on disposal of assets held for sale recognized during the three months ended March 31, 2025.
Current wording
There was $0.1 million of other income for the six months ended June 30, 2026, consisting primarily of interest income earned on funds held in institutional money market funds following the Company’s June 2026 equity offering, compared to other income of $0.1 million for the six months ended June 30, 2025 primarily attributable to the gain on disposal of assets held for sale recognized during the six months ended June 30, 2025.
Previous wording
Adjusted EBITDA is a key factor in how we assess the operating performance of our data center and develop our growth strategies and expansion decisions. We define Adjusted EBITDA as net income or loss excluding income tax expense, interest income, interest expense, other income and expense items, gain or loss on asset sales, depreciation, amortization and transaction costs, as presented below:
Current wording
Adjusted EBITDA is a key factor in how we assess the operating performance of our data center and develop our growth strategies and expansion decisions. We define Adjusted EBITDA as net income or loss excluding income tax expense, interest income, interest expense, other income and expense items, gain or loss on asset sales, depreciation, amortization, transaction costs, and non-recurring legal and professional fees, as presented below:
Previous wording
Adjusted EBITDA for the three months ended March 31, 2026 was a loss of $0.2 million, a decrease of $1.0 million, or 119%, from Adjusted EBITDA of $0.8 million for the three months ended March 31, 2025.
Current wording
Adjusted EBITDA for the six months ended June 30, 2026 was a loss of $3.2 million, a decrease of $3.9 million, or 552%, from Adjusted EBITDA of $0.7 million for the six months ended June 30, 2025.
Previous wording
We exclude depreciation and amortization from Adjusted EBITDA because they do not reflect our current or future cash spending levels to support our business and are based on the estimated useful lives of our data center assets, which estimates may vary from actual performance. We also exclude gain or loss on asset sales as it represents profit or loss not meaningful in evaluating current or future operating performance. Additionally, we exclude transaction costs and reimbursement transaction costs, which relate to costs incurred in connection with business combinations and the transaction with Signing Day Sports, including advisory, legal, accounting, valuation and other professional or consulting fees, to enhance comparability of our financial results with our historical operations. The frequency and amount of such charges vary significantly based on the size and timing of the transactions. Future transaction costs will depend on the Company executing additional transactions, which cannot be anticipated or estimated.
Current wording
We exclude depreciation and amortization from Adjusted EBITDA because they do not reflect our current or future cash spending levels to support our business and are based on the estimated useful lives of our data center assets, which estimates may vary from actual performance. We also exclude gain or loss on asset sales as it represents profit or loss not meaningful in evaluating current or future operating performance. Additionally, we exclude transaction costs and reimbursement transaction costs, which relate to costs incurred in connection with business combinations and the transaction with Signing Day Sports, including advisory, legal, accounting, valuation and other professional or consulting fees, to enhance comparability of our financial results with our historical operations. The frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management does not consider these costs indicative of our ongoing operating performance and believes their exclusion enhances period-over-period comparability as the Company executes its transition toward AI and HPC infrastructure development.
Previous wording
The Company manages its liquidity through a combination of operating cash flows and related-party financing arrangements. The Company also maintains flexibility through related-party arrangements, including a non-interest-bearing loan receivable from VCV Digital and a standby letter of credit secured by a related party to support energy procurement obligations. Prior to the Business Combination with Signing Day Sports, Inc. on March 16, 2026, the Company also managed liquidity through member contributions; following the closing of the Business Combination, the Company has access to the public capital markets as a NYSE American-listed registrant.
Current wording
The Company manages its liquidity through a combination of operating cash flows and related-party financing arrangements. The Company also maintains flexibility through related-party arrangements, including a non-interest-bearing loan receivable from VCV Digital Infrastructure Holdings LLC and a standby letter of credit secured by a related party to support energy procurement obligations. Prior to the Business Combination with Signing Day Sports, Inc. on March 16, 2026, the Company also managed liquidity through member contributions; following the closing of the Business Combination, the Company has access to the public capital markets as a NYSE American-listed registrant.
Previous wording
Management believes that the combination of expected operating cash flows, available related-party support, and access to capital markets will be adequate to meet the Company’s obligations and planned expenditures for the foreseeable future.
Current wording
The closing of the June 2026 public offering materially improved the Company’s liquidity profile and reduced its dependence on related-party funding arrangements. Management believes the capital raised provides the Company with greater flexibility to pursue expansion opportunities, including investments in power infrastructure, land acquisition opportunities, AI and HPC-focused data center development projects, deposits on long lead-time equipment and other strategic initiatives. As a result of the offering, management believes the Company is in a significantly stronger position to execute its long-term growth strategy and pursue opportunities that may not have been available prior to the offering and will be adequate to meet the Company’s obligations and planned expenditures for the foreseeable future.
Previous wording
Comparison of Cash Flows for the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of Cash Flows for the Six Months Ended June 30, 2026 and 2025
Previous wording
Cash was $1.3 million as of March 31, 2026, compared to $0.2 million as of March 31, 2025, an increase of approximately $1.1 million. The increase reflected the net impact of the following cash flow activities:
Current wording
Cash and cash equivalents was $52.8 million as of June 30, 2026, compared to less than $0.01 million as of June 30, 2025, an increase of approximately $52.8 million. The increase reflected the net impact of the following cash flow activities:
Previous wording
Operating activities. Net cash provided by operating activities was $1.3 million for the three months ended March 31, 2026, compared to net cash provided by operating activities of $0.4 million for the three months ended March 31, 2025, an increase of $0.9 million. The majority of cash provided by operating activities was due to a decrease in accounts receivable of $1.0 million. Although the Company recorded a net loss of $0.3 million in the current period compared to net income of $0.5 million in the prior-year period, operating cash flow also benefited from approximately $0.7 million of non-cash consulting and advisory share consideration recorded in connection with the Business Combination.
Current wording
Operating activities. Net cash used in operating activities was $4.7 million for the six months ended June 30, 2026, compared to net cash used in operating activities of $1.0 million for the six months ended June 30, 2025, an increase of $3.7 million. The majority of cash used in operating activities was due to decreases in accounts payable and contract liabilities of $1.5 million and $2.3 million, respectively, in addition to an increase in accounts receivable by $0.3 million during the period. Although the Company recorded a net loss of $3.8 million in the current period compared to net loss of $0.1 million in the prior-year period, cash flows used in operating activities was offset by an increase of $2.0 million in other current liabilities as well as benefited from approximately $0.7 million of non-cash consulting and advisory share consideration recorded in connection with the Business Combination.
Previous wording
Investing activities. There was $0.3 million in cash provided by investing activities for the three months ended March 31, 2026, compared to net cash provided by investing activities of $0.1 million for the three months ended March 31, 2025. Cash provided in the current period is due to the cash acquired in reverse merger. The prior period reflected $0.1 million of proceeds from the sale of assets previously classified as held for sale; there were no material investing transactions during the current period.
Current wording
Investing activities. There was $1.0 million in cash used in investing activities for the six months ended June 30, 2026, compared to net cash provided by investing activities of $1.1 million for the six months ended June 30, 2025. Cash used in the current period is due to $1.2 million refundable deposit related to the proposed Minnesota development site offset by cash of $0.3 million provided by the cash acquired in reverse merger. In addition, the Company incurred approximately $0.4 million of construction-in-progress additions that remained unpaid as of June 30, 2026 and therefore were not reflected as investing cash outflows during the period. The prior period reflected $1.0 million in proceeds from a related party loan receivable as well as $0.1 million of proceeds from the sale of assets previously classified as held for sale.
Previous wording
Financing activities. Net cash used in financing activities was $0.3 million for the three months ended March 31, 2026, compared to net cash used in financing activities of $0.4 million for the three months ended March 31, 2025. The current period reflected $0.3 million of repayments of consideration payable. The prior-year period reflected $0.7 million of distributions, partially offset by $0.3 million of contributions.
Current wording
Financing activities. Net cash provided by financing activities was $58.4 million for the six months ended June 30, 2026, compared to net cash used in financing activities of $0.3 million for the six months ended June 30, 2025. Net cash provided by financing activities during the six months ended June 30, 2026 was attributable to $59.0 million in net proceeds received from the Company’s June 2026 public offering, partially offset by $0.6 million repayments of consideration payable. The prior-year period reflected $1.4 million of distributions, partially offset by $1.2 million of contributions.
Previous wording
We engage in various transactions with related parties in the ordinary course of business. During the reporting periods, the Company reimbursed an affiliate for administrative and operational expenses incurred on its behalf. The Company also maintained a loan receivable from VCV Digital, used to support surety bond and letter of credit requirements. The loan is non-interest-bearing and is considered fully collectible based on the collateral structure and the financial condition of the borrower.
Current wording
We engage in various transactions with related parties in the ordinary course of business. During the reporting periods, the Company reimbursed an affiliate for administrative and operational expenses incurred on its behalf. The Company also maintained a loan receivable from VCV Digital Infrastructure Holdings LLC (“VCV DIH”), which is under common ownership with the Company and is therefore a related party. The loan was used to support surety bond and letter of credit requirements and is non-interest-bearing. Management believes the loan is fully collectible based on the collateral structure and the financial condition of the borrower. In addition, a subsidiary of VCV DIH, Blue Ridge Digital Mining LLC, is a customer of the Company’s hosting operations, and VCV DIH maintains the surety bond supporting certain obligations under the Company’s Energy Services Agreement.
Previous wording
As an emerging growth company under the JOBS Act, we can take advantage of an extended transition period for complying with new or revised accounting standards. We may elect to avail ourselves of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we may adopt the new or revised standard at the time private companies adopt it, until such time that we either irrevocably elect to opt out of the extended transition period or no longer qualify as an emerging growth company. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.
Current wording
As an emerging growth company under the JOBS Act, we can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected to avail ourselves of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we may adopt the new or revised standard at the time private companies adopt it, until such time that we either irrevocably elect to opt out of the extended transition period or no longer qualify as an emerging growth company. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Cost of revenue and gross margin. The largest components of our cost of revenues are utility-related expenses, including electricity, bandwidth access and other infrastructure costs. Cost of revenues totaled $7.8 million for the six months ended June 30, 2026, an increase of $0.3 million, or 4%, compared to $7.5 million for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Gross profit declined to less than $0.1 million for the six months ended June 30, 2026, compared to gross profit of $1.8 million for the same period in 2025, a decrease of approximately $1.7 million. Gross margin decreased to approximately 1% for the six months ended June 30, 2026 from approximately 19% for the same period in 2025. Fluctuations in gross profit are largely affected by two principal factors:
Current report — wording carried from elsewhere
The decrease in gross profit was primarily attributable to increased energy costs, which were not able to be passed through to customers. Total energy volume billed to customers decreased to approximately 123 GWh for the six months ended June 30, 2026 from approximately 140 GWh for the six months ended June 30, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Company procures electricity through a local utility provider and is subject to an annual true-up process that reconciles estimated energy costs with actual consumption and final rates. Management must estimate the true-up accrual at each reporting period, which directly impacts cost of revenues. This estimate involves significant judgment, particularly in forecasting usage patterns, rate changes, and timing of adjustments. The annual true-up credit or charge is typically invoiced in Q3 of the following year.