Hyperscale Data, Inc.
For the period ended Jun 30, 2026. Filed Aug 19, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 19, 2026
GPUS$0.14-2.5%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 2026-05-18.
0001214659-26-006542
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-19.
0001214659-26-010549
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 81 previous paragraphs and 130 current paragraphs.
32 unchanged; 24 reworded; 68 added; 24 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 15 previous and 19 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 (68)
Current report
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
In January and February 2026, we issued two short-term term notes to an institutional investor for aggregate gross proceeds of $10.0 million. Repayment obligations under the note were guaranteed by Ault & Company and Milton C. Ault, III, our Executive Chairman. Both notes have since been repaid in full.
Current report
On May 27, 2026, we provided notice of our election to terminate our Prior ATM Offering, with such termination becoming effective on June 8, 2026. Prior to its termination, we had sold approximately 137.6 million shares of our Class A common stock under the program for aggregate gross proceeds of approximately $24.6 million.
Current report
On June 18, 2026, we entered into a new At-the-Market Issuance Sales Agreement with Spartan as sales agent, pursuant to which we may offer and sell shares of our Class A common stock having an aggregate offering price of up to $300.0 million from time to time. Sales under the new ATM program are made pursuant to our effective shelf registration statement on Form S-3.
Current report
On June 11, 2026, we entered into a Prepaid Advance Agreement with YA II PN, Ltd. (“Yorkville”), pursuant to which we received net proceeds of approximately $15.0 million in exchange for a prepaid advance with an initial principal balance of approximately $16.0 million. The prepaid advance bears interest at 4% per annum and matures on December 11, 2027. The advance will be repaid through periodic cash payments or, subject to the terms of the agreement, through the issuance of shares of our Class A common stock based on a formula tied to the market price of our common stock. We may also prepay all or a portion of the outstanding balance under certain circumstances. The financing provides us with additional capital to support our strategic initiatives and general corporate purposes.
Current report
On June 23, 2026, our indirect wholly owned subsidiary, Alliance Cloud Services, LLC (the “Provider”) entered into a Master Services Agreement (the “Agreement”) with a customer (the “Customer”) to deploy a total of approximately 20 megawatts (“MW”), to be delivered by Provider in phases as described herein, for AI computing at the Provider’s AI data center campus in Dowagiac, Michigan (the “Facility”). Pursuant to the Agreement, the Provider agrees to provide to Customer, certain colocation and related data center services that are set forth in the Agreement (each, a “Service” and collectively, the “Services”) at the recurring service charges for each Contract Year (as defined below).
Current report
Further, the Agreement provides for the Provider granting the Customer an exclusive license (the “License”) to use a certain area of the Facility (the “Service Area”), foran initial term of 10 years and two five-year extension options(the “Term”) to commence on the “Service Commencement Date,” which means, with respect each Phase, the date of delivery of the applicable Service Area and electrical capacity to the Customer and to end on the date which shall be the last day of the calendar month in which the end of the tenth Contract Year occurs (the “Fixed Expiration Date”) where “Contract Year” means (i) with respect to the first Contract Year, the period commencing on the Service Commencement Date and ending on the day before the first anniversary of the later to occur of (x) the Service Commencement Date of Phase 1 and (y) the date that is six months after the Execution Date, and (y) each successive 12 month period after the First Year Expiration Date until the Fixed Expiration Date. If available, the Agreement also provides the Customer with a right of first offer to an additional 32 MW of critical AI compute capacity.
Current report
The License applies to the following Phases (each, a “Phase” and collectively the “Phases”):
Current report
(a) ”Phase 1”, consisting of power modules for 10 MW of critical information technology (“IT”) power capacity to a portion of the Service Area, with a targeted delivery date of 90 days after the Execution Date; and
Current report
(b) ”Phase 2”, consisting of power modules for an additional 10 MW of critical IT power capacity to a different portion of the Service Area, with a targeted delivery date of 180 days after the Execution Date.
Current report
Pursuant to the Agreement, assuming the Customer elects to exercisethe two five-year extension options, the total contract value to the Provider is approximately $1.2 billion during the Term, subject to the Provider meeting its obligations under the Agreement. If the Customer exercises its right of first offer within the first two years from the Execution Date for the additional 32 MW of critical AI compute capacity, then the total contract value to the Provider would increase to approximately $3.0 billion. The Agreement provides for certain one-time payments by the Customer in connection with Phase 1 and Phase 2 fit out work, as well as a monthly colocation fee to paid by the Customer for Phase 1 and Phase 2 (a portion of which is to be prepaid), based upon the number of kilowatts delivered.
Current report
The Agreement requires the Provider to construct, equip, and commission two Phases of the Service Area at the Facility, with Phase 1 (10 MW) ready-for-service date targeted at September 21, 2026 and with full deployment in Phase 2 (10 MW) targeted by the end of 2026.
Current report
Energy revenues from Circle 8’s crane operations decreased by approximately $0.5 million, or 5%, for the three months ended June 30, 2026, compared to the same period in 2025. The decrease was primarily attributable to lower activity from certain oil and gas customers, reflecting industry consolidation and a reduction in drilling locations requiring crane services.
Current report
Revenues from our lending and trading activities decreased by approximately $4.1 million to negative $2.3 million for the three months ended June 30, 2026, compared to revenue of $1.8 million for the same period in 2025. The decrease was primarily attributable to non-cash unrealized losses on equity securities and changes in the fair value of warrant-related derivative instruments, which was partially offset by increased interest and fee income. Interest income increased primarily due to the accretion of discounts on our loans receivable, while fee income increased due to fees earned in connection with that lending activity.
Current report
Defense
Current report
Defense segment revenues increased by approximately $10.2 million, or 604%, to $11.9 million for the three months ended June 30, 2026, compared to $1.7 million for the same period in 2025. The increase was primarily attributable to the inclusion of revenues from our Gresham Worldwide, Inc. (“Gresham”) defense subsidiary that reemerged from Chapter 11 bankruptcy proceedings and was reconsolidated in late 2025. As a result, no revenues from that subsidiary were included in the comparable prior-year period.
Current report
Revenues from AGREE’s hotel operations increased by approximately $0.3 million, or 5%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by higher occupancy resulting from increased guest demand, while average daily rates remained relatively consistent with the prior-year period. The combination of higher occupancy and stable room rates contributed to improved revenue per available room and overall hotel operating performance.
Current report
Other revenues increased by approximately $2.9 million, or 647%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to revenues generated from our blockchain initiatives.
Current report
Gross Profits and Margins
Current report
Gross profit increased by approximately $2.7 million, or 44%, to $8.8 million for the three months ended June 30, 2026, compared to $6.1 million for the same period in 2025. Gross margin increased to 25% from 24% in the prior-year period. The improvement was primarily attributable to growth of our Defense operations following the reconsolidation of a subsidiary in late 2025, higher-margin blockchain-related revenues, and improved margins within our crane and hotel operations. These favorable factors were partially offset by negative gross margins from our lending and trading activities, driven primarily by non-cash fair value adjustments, and continued negative gross margins from crypto asset mining activities.
Current report
General and administrative expenses were $19.8 million for the three months ended June 30, 2026, compared to $9.9 million for the same period in 2025, an increase of $10.0 million, or 101%. The increase primarily reflected approximately $2.6 million of expenses associated with the reconsolidation of Gresham, $2.0 million of higher employee compensation and benefits as we expanded our operations, $1.5 million of higher legal and professional fees supporting strategic and corporate initiatives, $1.5 million of higher travel-related expenses and approximately $2.4 million of other net increases in corporate operating costs.
Current report
Impairment of Property and Equipment
Current report
During the three months ended June 30, 2026, we recorded a $2.3 million impairment charge related to certain Bitcoin mining equipment located at our Michigan data center. The impairment was triggered by our execution of a master services agreement with a third-party customer for AI compute, neocloud and colocation services. As we prepare to allocate a significant portion of the facility’s available electrical capacity to support that customer’s deployments, we expect to substantially wind down our Bitcoin mining operations at the Michigan data center. The impairment reflects our strategic transition of the facility from Bitcoin mining to AI infrastructure services, rather than any deterioration in the physical condition of the equipment.
Current report
At the time of our impairment analysis, we had not yet determined whether the affected mining equipment would be relocated to another facility, sold or otherwise disposed of. Because we expect the equipment to no longer be used at the Michigan data center and its future use remained uncertain, we concluded that the carrying amount of the related asset group was not recoverable. Accordingly, we recorded an impairment charge to reduce the carrying value of the equipment to its estimated fair value, which was determined primarily using observable market data for comparable Bitcoin mining equipment under an orderly liquidation value approach.
Current report
We recorded a $2.7 million gain related to the change in fair value of crypto assets for the three months ended June 30, 2026. The gain primarily reflects increases in the market price of Bitcoin during periods in which we held higher balances of unrestricted crypto assets prior to transferring a significant portion of our Bitcoin holdings to restricted crypto assets during the quarter.
Current report
Other income, net was $4.1 million for the three months ended June 30, 2026, compared to other expense, net of $7.3 million for the same period in 2025. The favorable change was primarily attributable to the gain on extinguishment of a settlement obligation and lower interest expense, partially offset by losses related to the change in fair value of restricted crypto assets, including changes in fair value and impairment charges.
Current report
Interest expense decreased by approximately $3.7 million, or 49%, to $3.9 million for the three months ended June 30, 2026, compared to $7.7 million for the same period in 2025. The decrease was primarily attributable to lower non-cash amortization of debt discounts and reduced contractual interest expense, reflecting changes in our financing mix and lower average borrowing costs during the current period. The decrease also reflects the absence of forbearance fees recognized in the prior-year period.
Current report
During the three months ended June 30, 2026, we recognized a gain of approximately $16.0 million related to the extinguishment of a settlement obligation. The gain resulted from management’s determination that it had substantially satisfied its obligations under a settlement agreement to identify and distribute proceeds to eligible stockholders of a former subsidiary and that substantially all of the remaining obligation had been extinguished.
Current report
We recognized a non-cash gain of $0.8 million during the three months ended June 30, 2026, primarily related to the remeasurement of the embedded derivative associated with our Yorkville prepaid advance financing. The embedded derivative is measured at fair value each reporting period, and changes in fair value are recognized in earnings. No comparable gain or loss was recognized during the three months ended June 30, 2025.
Current report
Income Tax Benefit
Current report
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report
Revenues
Current report
Sentinum
Current report
Revenues from Sentinum’s crypto asset mining operations increased by $0.1 million to $10.0 million for the six months ended June 30, 2026, compared to $9.9 million for the same period in 2025. The increase in mining revenue was driven by the deployment of 4,092 Bitmain S21+ and S21 Pro Antminers in November 2025, partially offset by an 18% increase in the average Bitcoin network difficulty level and a 23% decrease in the average Bitcoin price and during the six months ended June 30, 2026, compared to the same period in 2025.
Current report
Energy
Current report
Energy revenues from Circle 8’s crane operations decreased by approximately $3.3 million, or 13%, for the six months ended June 30, 2026, compared to the same period in 2025. The decrease was primarily attributable to lower activity from certain oil and gas customers as a result of industry consolidation, which reduced the number of active drilling locations requiring crane services.
Current report
Fintech
Current report
Defense
Current report
Defense segment revenues increased by approximately $20.6 million, or 626%, to $23.8 million for the six months ended June 30, 2026, compared to $3.3 million for the same period in 2025. The increase was primarily attributable to the inclusion of revenues from our Gresham defense subsidiary that reemerged from Chapter 11 bankruptcy proceedings and was reconsolidated in late 2025. As a result, no revenues from that subsidiary were included in the comparable prior-year period.
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Removed paragraphs (24)
Previous report
n/m - not meaningful
Previous report
Energy revenues from Circle 8’s crane operations declined by $2.8 million, or 20%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease reflects a slowdown in demand from oil and gas customers, as many exploration projects were delayed or scaled back amid continued market uncertainty. Key contributing factors included fluctuations in crude oil prices, softer global demand and trade-related concerns, all of which impacted the pace of new project starts and the need for crane services.
Previous report
Gresham
Previous report
Revenues from Gresham were $10.2 million for the three months ended March 31, 2026. No revenues from Gresham were included in the comparable prior-year period because we did not reconsolidate Gresham until its emergence from Chapter 11 bankruptcy proceedings in late 2025.
Previous report
Revenues from AGREE’s hotel operations increased by $0.5 million, or 14%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase reflects incremental improvements in both occupancy and average daily rates, indicating continued progress in hotel performance year-over-year.
Previous report
TurnOnGreen
Previous report
TurnOnGreen’s revenues increased by $0.1 million, to $1.7 million for the three months ended March 31, 2026, compared to $1.6 million in the corresponding period in 2025. The increase was primarily attributable to increased sales to a new electric vehicle charging customer.
Previous report
Other revenues decreased by $0.1 million, or 11%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily driven by reduced corporate aircraft charter revenue from third parties during the period.
Previous report
Gross Margins
Previous report
Gross margins increased to 34% for the three months ended March 31, 2026, compared to 21% for the three months ended March 31, 2025. The improvement was primarily driven by favorable contributions from lending and trading activities, which generated approximately $9.6 million of gross profit, as well as the inclusion of Gresham revenue following its emergence from bankruptcy. These improvements were partially offset by unfavorable margins from crypto asset mining activities and lower margins from crane operations.
Previous report
Excluding the effects of crypto asset mining and lending and trading activities, adjusted gross margins decreased to 29% for the three months ended March 31, 2026, compared to 36% for the three months ended March 31, 2025, primarily reflecting a shift in revenue mix, including the inclusion of Gresham operations and lower crane operations margins.
Previous report
General and administrative expenses were $18.5 million for the three months ended March 31, 2026, compared to $9.2 million for the same period in 2025, representing an increase of $9.3 million, or 101%. The increase was primarily driven by the inclusion of Gresham following its emergence from bankruptcy, higher corporate-level expenses at the holding company level, and increased professional fees, including consulting and legal costs, as well as higher travel-related expenses.
Previous report
We recorded a $7.4 million loss related to the change in fair value of crypto assets for the three months ended March 31, 2026, reflecting a decline in Bitcoin market prices during the period. We held approximately $26.3 million of Bitcoin as of March 31, 2026, compared to $46.2 million as of December 31, 2025, and the decrease in market prices resulted in an overall unfavorable fair value adjustment recognized in earnings.
Previous report
Other expense, net was $8.6 million for the three months ended March 31, 2026, compared to other income, net of $1.7 million for the three months ended March 31, 2025. The change was primarily driven by the absence of the prior year gain on deconsolidation of a subsidiary, as well as higher interest expense and losses on the change in fair value of crypto assets, restricted, partially offset by gains recognized in the current period.
Previous report
Interest expense increased to $6.5 million for the three months ended March 31, 2026, compared to $3.8 million for the same period in 2025, primarily due to higher average outstanding debt balances and financing costs during the period.
Previous report
We recorded a $4.7 million loss related to the change in fair value of restricted crypto assets, restricted for the three months ended March 31, 2026, reflecting a decline in Bitcoin market prices during the period. We held approximately $16.7 million of crypto assets, restricted as of March 31, 2026, whereas no crypto assets, restricted were held as of December 31, 2025, and the decrease in market prices resulted in an overall unfavorable fair value adjustment recognized in earnings.
Previous report
Additionally, we recognized a $1.3 million gain related to the change in fair value of embedded derivative liabilities during the three months ended March 31, 2026, primarily driven by changes in our stock price and other key valuation inputs, including volatility and discount rates, associated with certain convertible financing instruments.
Previous report
For the three months ended March 31, 2025, we recognized a $10.0 million gain on deconsolidation of a subsidiary (Avalanche International Corp.) following its filing for Chapter 7 liquidation, which resulted in us no longer maintaining a controlling financial interest. This gain did not recur in the current period.
Previous report
Income Tax Provision
Previous report
We believe our existing liquidity sources, anticipated cash generated from operations and access to external financing sources will provide us with the flexibility necessary to support our operations and address our anticipated obligations over at least the next 12 months. However, our ability to maintain adequate liquidity will depend on, among other factors, operating performance, capital market conditions, the availability of additional financing, and the market value of our assets and investments.
Previous report
Circle 8 Financing Agreement
Previous report
In April 2026, Circle 8 finalized a financing arrangement and received $10.0 million in equipment financing. In connection with the financing, Circle 8 issued a promissory note with a five-year term requiring monthly payments of approximately $0.2 million. The note bears interest at a variable rate based on the five-year U.S. Treasury rate plus 2%, with an initial rate of approximately 5.7%.
Previous report
The financing is secured by first-priority liens on certain cranes and related equipment owned by Circle 8. Proceeds from the financing were used to repay amounts outstanding under the Circle 8 revolving credit facility and for general operating purposes.
Reworded paragraphs (24)
Previous wording
Through another of its wholly owned subsidiaries, Ault Capital Group, Inc. (“ACG”), the Company currently holds a portfolio of diversified businesses and strategic investments spanning commercial lending and trading, an AI software platform, equipment rental services, defense/aerospace, industrial, automotive, medical and hotel operations. In addition, ACG is actively engaged in extending private credit and structured finance through a licensed lending subsidiary. Hyperscale Data currently expects the divestiture of ACG (the “Divestiture”) to occur in the second quarter of 2027, though there can be no assurance that the Divestiture will be completed during such quarter. Upon the occurrence of the Divestiture, the Company would operate as a focused AI data center and Bitcoin infrastructure company.
Current wording
Through another of its wholly owned subsidiaries, Ault Capital Group, Inc. (“ACG”), the Company currently holds a portfolio of diversified businesses and strategic investments spanning commercial lending and trading, an AI software platform, equipment rental services, defense/aerospace, industrial, automotive, medical and hotel operations. In addition, ACG is actively engaged in extending private credit and structured finance through a licensed lending subsidiary. Hyperscale Data currently expects the divestiture of ACG (the “Divestiture”) to occur in 2027, though there can be no assurance that the Divestiture will be completed during such quarter. Upon the occurrence of the Divestiture, the Company would operate as a focused AI data center and Bitcoin infrastructure company.
Previous wording
On December 19, 2025, we entered into an At-the-Market Issuance Sales Agreement with Spartan Capital Securities, LLC (“Spartan”), as sales agent to sell shares of our Class A common stock, having an aggregate offering price of up to $50 million from time to time, through an “at the market offering” (the “ATM Offering”) as defined in Rule 415 under the Securities Act. On December 19, 2025, we filed a prospectus supplement with the SEC relating to the offer and sale of up to $50 million of Class A common stock in the ATM Offering. On January 16, 2026, we amended the At-the-Market Issuance Sales Agreement and filed a prospectus supplement to indicate that Spartan will serve as the lead sales agent and to add Wilson-Davis as an additional sales agent.
Current wording
On December 19, 2025, we entered into an At-the-Market Issuance Sales Agreement with Spartan Capital Securities, LLC (“Spartan”), as sales agent to sell shares of our Class A common stock, having an aggregate offering price of up to $50 million from time to time, through an “at the market offering” (the “Prior ATM Offering”) as defined in Rule 415 under the Securities Act. On December 19, 2025, we filed a prospectus supplement with the SEC relating to the offer and sale of up to $50 million of Class A common stock in the ATM Offering. On January 16, 2026, we amended the At-the-Market Issuance Sales Agreement and filed a prospectus supplement to indicate that Spartan will serve as the lead sales agent and to add Wilson-Davis & Co., Inc. (“Wilson-Davis”) as an additional sales agent.
Previous wording
In April 2026, we entered into a short-term term note with an institutional investor for gross proceeds of $10.0 million. The note was issued with an original issue discount of $0.8 million and has a principal face amount of $10.8 million. The note bears interest at 12% per annum and matures on June 29, 2026. Beginning May 8, 2026, we are required to make weekly principal payments of $0.7 million through June 26, 2026, with the remaining outstanding principal balance and accrued interest due at maturity. The note may be prepaid at any time without penalty. Repayment obligations under the note are guaranteed by Ault & Company and Milton C. Ault, III, our Executive Chairman.
Current wording
In April 2026, we entered into an additional short-term term note with the same institutional investor for gross proceeds of $10.0 million. The note was issued with an original issue discount of $0.8 million and had a principal face amount of $10.8 million. The note bore interest at 12% per annum and matured on June 29, 2026. Beginning May 8, 2026, we were required to make weekly principal payments of $0.7 million through June 26, 2026, with the remaining outstanding principal balance and accrued interest due at maturity. The note was prepaid and fully satisfied during the three months ended June 30, 2026. Accordingly, no amounts were outstanding under the term note as of June 30, 2026. Repayment obligations under the note were guaranteed by Ault & Company and Milton C. Ault, III, our Executive Chairman.
Previous wording
As of May 15, 2026, we have sold 137.6 million shares of our Class A common stock under the ATM Offering for gross proceeds of approximately $24.7 million.
Current wording
As of June 30, 2026, we had sold an aggregate of approximately 126.2 million shares of our Class A common stock under the new ATM program for gross proceeds of approximately $25.5 million.
Previous wording
As of May 15, 2026, we have sold 22,743 shares of our Series D Preferred under the Series D Preferred ATM Offering for gross proceeds of approximately $0.5 million.
Current wording
As of June 30, 2026, we had sold 33,984 shares of our Series D Preferred under the Series D Preferred ATM Offering for gross proceeds of approximately $0.8 million.
Previous wording
In recent years, we have provided capital and relevant expertise to fuel the growth of businesses in AI software platform, equipment rental services, defense, industrial and hotel operations. We have provided capital to subsidiaries as well as partner companies in which we have an equity interest or may be actively involved, influencing development through board representation and management support.
Current wording
In recent years, we have provided capital and relevant expertise to fuel the growth of businesses in our AI software platform, equipment rental services, defense, industrial and hotel operations. We have provided capital to subsidiaries as well as partner companies in which we have an equity interest or may be actively involved, influencing development through board representation and management support.
Previous wording
Revenues from Sentinum’s crypto asset mining operations decreased by $0.1 million to $5.1 million for the three months ended March 31, 2026, compared to $5.2 million for the same period in 2025. The decrease in mining revenue was driven by an 18% decrease in the average Bitcoin price and a 27% increase in the average Bitcoin network difficulty level during the three months ended March 31, 2026, compared to the same period in 2025.
Current wording
Revenues from Sentinum’s crypto asset mining operations increased by $0.2 million to $4.9 million for the three months ended June 30, 2026, compared to $4.7 million for the same period in 2025. The increase in mining revenue was driven by the deployment of 4,092 Bitmain S21+ and S21 Pro Antminers in November 2025, partially offset by a 10% increase in the average Bitcoin network difficulty level and a 27% decrease in the average Bitcoin price and during the three months ended June 30, 2026, compared to the same period in 2025.
Previous wording
Research and development expenses increased by approximately $4.7 million for the three months ended March 31, 2026, reflecting increased investment in the development of our AI and blockchain initiatives as these efforts continue to scale.
Current wording
Research and development expenses were $4.3 million for the three months ended June 30, 2026, compared to $0.1 million for the three months ended June 30, 2025, an increase of approximately $4.2 million. The increase reflects increased investment in the development of our AI and blockchain initiatives as these development efforts continue to scale.
Previous wording
Selling and marketing expenses were $5.6 million for the three months ended March 31, 2026, compared to $2.3 million for the three months ended March 31, 2025, an increase of $3.3 million, or 140%, reflecting increased investment in brand-building initiatives and expanded marketing campaigns to support our growth strategy.
Current wording
Selling and marketing expenses were $8.1 million for the three months ended June 30, 2026, compared to $6.2 million for the three months ended June 30, 2025, an increase of $1.9 million, or 30%, reflecting increased investment in brand-building initiatives and expanded marketing campaigns to support our growth strategy.
Previous wording
Interest and other income totaled $0.8 million for the three months ended March 31, 2026, compared to $0.2 million for the same period in 2025, primarily reflecting higher income from various non-operating sources.
Current wording
Interest and other income totaled $0.4 million for the three months ended June 30, 2026, compared to $1.1 million for the same period in 2025, primarily reflecting lower income from various non-operating sources.
Previous wording
We recorded a $4.7 million loss related to the change in fair value of crypto assets, restricted for the three months ended March 31, 2026, reflecting a decline in Bitcoin market prices during the period. We held approximately $16.7 million of Bitcoin as of March 31, 2026, compared to $0 as of December 31, 2025, and the decrease in market prices resulted in an overall unfavorable fair value adjustment recognized in earnings.
Current wording
We recorded a loss of approximately $2.4 million related to the change in fair value of crypto assets, restricted for the three months ended June 30, 2026, reflecting declines in the market price of restricted Bitcoin during the period. In addition, we recognized an impairment charge of approximately $7.1 million related to cbBTC pledged as collateral for our Bitcoin-backed borrowings.
Previous wording
During the three months ended March 31, 2026, we recognized a gain on extinguishment of debt of approximately $0.5 million, compared to a loss of $4.6 million in the prior year period, reflecting the settlement of certain debt obligations on favorable terms.
Current wording
During the three months ended June 30, 2026, we recognized a gain on extinguishment of debt of approximately $0.3 million, reflecting the settlement of certain debt obligations on favorable terms. No comparable gains were recognized during the prior-year period.
Previous wording
We recorded an income tax provision of approximately $0.2 million for the three months ended March 31, 2026, compared to $0.1 million for the same period in 2025. The effective tax rate for the three months ended March 31, 2026 was approximately 0.8%, compared to 1.3% for the same period in 2025. The effective tax rate differs from the statutory rate primarily due to the impact of valuation allowances and the mix of income and losses across jurisdictions.
Current wording
We recorded an income tax benefit of approximately $24,000 for the three months ended June 30, 2026, compared to $0.1 million for the same period in 2025. The effective tax rate for the three months ended June 30, 2026 was approximately 0.1%, compared to 0.7% for the same period in 2025. The effective tax rate differs from the statutory rate primarily due to the impact of valuation allowances and the mix of income and losses across jurisdictions.
Previous wording
Revenues from our lending and trading activities increased by $11.5 million to $11.5 million for the three months ended March 31, 2026, compared to ($28,000) for the same period in 2025. The increase was driven primarily by litigation-related proceeds associated with legacy ownership interests held by Ault Lending and unrealized gains on investments in other equity securities.
Current wording
Revenues from our lending and trading activities increased by approximately $7.4 million to $9.2 million for the six months ended June 30, 2026, compared to $1.8 million for the same period in 2025. The increase was primarily attributable to litigation-related proceeds associated with legacy ownership interests held by Ault Lending, partially offset by non-cash unrealized losses on equity securities and changes in the fair value of warrant-related derivative instruments.
Previous wording
As of March 31, 2026, we had $10.5 million in cash and cash equivalents and $25.7 million in restricted cash, compared to $13.1 million in cash and cash equivalents and $36.1 million in restricted cash as of December 31, 2025.
Current wording
As of June 30, 2026, we had $36.8 million in cash and cash equivalents and $28.3 million in restricted cash, compared to $13.1 million in cash and cash equivalents and $36.1 million in restricted cash as of December 31, 2025.
Previous wording
In the next 12 months, in addition to funding our operations, we expect to satisfy obligations related to scheduled debt maturities, interest payments, operating lease obligations, accrued preferred dividend obligations, and planned capital expenditures associated with our data center infrastructure, mining operations and other operating businesses. As of March 31, 2026, our short-term obligations primarily consisted of approximately $94.6 million of current notes payable and convertible notes payable, approximately $2.0 million of current operating lease liabilities, and approximately $60.6 million of accounts payable and accrued expenses.
Current wording
In the next 12 months, in addition to funding our operations, we expect to satisfy obligations related to scheduled debt maturities, interest payments, operating lease obligations, accrued preferred dividend obligations, and planned capital expenditures associated with our data center infrastructure and other operating businesses. These planned capital expenditures include investments necessary to construct, equip and commission the service areas, power modules and related infrastructure supporting the phased deployment of approximately 20 MW of critical power capacity at our Michigan data center pursuant to the Agreement. Management currently expects these investments to exceed $100 million over time, although the timing and amount of such expenditures will depend on construction progress, equipment procurement, customer deployment schedules and financing availability. As of June 30, 2026, our short-term obligations primarily consisted of approximately $99.2 million of current notes payable and convertible notes payable, approximately $2.0 million of current operating lease liabilities, and approximately $61.4 million of accounts payable and accrued expenses.
Previous wording
To fund our short-term liquidity requirements, management expects to utilize a combination of existing cash and restricted cash balances, cash generated from operations, proceeds from financings, capital raising activities, sales of investments or other assets, and other available liquidity sources. As of March 31, 2026, we also held approximately $26.3 million of crypto assets, excluding the $16.7 million of crypto assets, restricted.
Current wording
To fund our short-term liquidity requirements, management expects to utilize a combination of existing cash and restricted cash balances, cash generated from operations, proceeds from financings, capital raising activities, sales of investments or other assets, and other available liquidity sources. As of June 30, 2026, we also held approximately $4.4 million of crypto assets, excluding the $41.6 million of crypto assets, restricted.
Previous wording
Total cash, cash equivalents and restricted cash decreased by approximately $12.9 million during the three months ended March 31, 2026, primarily reflecting cash used in investing activities, partially offset by cash provided by financing activities.
Current wording
Total cash, cash equivalents and restricted cash increased by approximately $15.9 million during the six months ended June 30, 2026, primarily reflecting cash provided by financing activities, partially offset by cash used in investing activities.
Previous wording
Net cash used in operating activities was approximately $0.2 million for the three months ended March 31, 2026, compared to $4.0 million for the same period in 2025.
Current wording
Net cash used in operating activities was approximately $9.9 million for the six months ended June 30, 2026, compared to $7.0 million for the same period in 2025.
Previous wording
Net cash used in investing activities was approximately $22.8 million for the three months ended March 31, 2026, compared to $1.2 million for the same period in 2025. Cash used in investing activities during the three months ended March 31, 2026 was primarily attributable to:
Current wording
Net cash used in investing activities was approximately $45.1 million for the six months ended June 30, 2026, compared to $2.3 million for the same period in 2025. Cash used in investing activities during the six months ended June 30, 2026 consisted primarily of:
Previous wording
These uses were partially offset by $1.1 million collections on loans receivable and $1.0 million of proceeds from the sale of property and equipment.
Current wording
These uses were partially offset by $5.3 million in collections on loans receivable.
Previous wording
Net cash provided by financing activities was approximately $10.6 million for the three months ended March 31, 2026, compared to $4.7 million for the same period in 2025.
Current wording
Net cash provided by financing activities was approximately $70.8 million for the six months ended June 30, 2026, compared to $11.6 million for the same period in 2025.
Previous wording
During the period between April 1, 2026 through May 15, 2026, we sold an aggregate of 91.1 million shares of Class A common stock pursuant to the ATM Offering for gross proceeds of $14.0 million.
Current wording
During the period between July 1, 2026 through August 13, 2026, we sold an aggregate of 70.8 million shares of Class A common stock pursuant to the ATM Offering for gross proceeds of $9.2 million.
Previous wording
During the period between April 1, 2026 through May 15, 2026, we sold an aggregate of 20,245 shares of Series D Preferred Stock pursuant to our Series Preferred D ATM Offering for gross proceeds of $0.4 million.
Current wording
During the period between July 1, 2026 through August 13, 2026, we sold an aggregate of 11,369 shares of Series D Preferred Stock pursuant to our Series Preferred D ATM Offering for gross proceeds of $0.2 million.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
The following table summarizes the results of our operations for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
Revenues by business category for the six months ended June 30, 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Revenues from our trading activities for the six months ended June 30, 2026 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.
Current report — wording carried from elsewhere
Selling and marketing expenses were $13.8 million for the six months ended June 30, 2026, compared to $8.6 million for the six months ended June 30, 2025, an increase of $5.1 million, or 60%, reflecting increased investment in brand-building initiatives and expanded marketing campaigns to support our growth strategy.
Current report — wording carried from elsewhere
Change in Fair Value of Crypto Assets
Current report — wording carried from elsewhere
We recorded an income tax provision of approximately $0.2 million for the six months ended June 30, 2026, compared to a tax benefit of $0.1 million for the same period in 2025. The effective tax rate for the six months ended June 30, 2026 was approximately 0.4%, compared to -0.3% for the same period in 2025. The effective tax rate differs from the statutory rate primarily due to the impact of valuation allowances and the mix of income and losses across jurisdictions.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In April 2026, we entered into a short-term term note with an institutional investor for gross proceeds of $10.0 million. The note was issued with an OID of $0.8 million and has a principal face amount of $10.8 million. The note bears interest at 12% per annum and matures on June 29, 2026. Beginning May 8, 2026, we are required to make weekly principal payments of $0.7 million through June 26, 2026, with the remaining outstanding principal balance and accrued interest due at maturity. The note may be prepaid at any time without penalty. Repayment obligations under the note are guaranteed by Ault & Company and Milton C. Ault, III, our Executive Chairman.