AVAX ONE TECHNOLOGY LTD.
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
AVX$4.29+1.9%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.
0001493152-26-023348
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.
0001493152-26-037763
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 76 previous paragraphs and 81 current paragraphs.
41 unchanged; 33 reworded; 7 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 23 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 (7)
Current report
Leadership Transition
Current report
As previously reported by the Company, Jolie Kahn resigned as the Company’s Chief Executive Officer (“CEO”), effective July 3, 2026 and the Company’s Board of Directors (“Board”) subsequently appointed Peter Wylie Jr., the Company’s Chief Operating Officer, as Interim CEO. Mr. Wylie will continue to serve as Chief Operating Officer. In connection with Mr. Wylie’s increased responsibilities as interim CEO, Mr. Wylie’s compensation increased to a total of $40,000 per month. Additionally, the Board has initiated a comprehensive search for a long-term successor and formally retained a global executive search firm to support the process.
Current report
In connection with Ms. Kahn’s departure, Ms. Kahn and the Company entered into a separation and release agreement, dated July 5, 2026 (“Kahn Separation Agreement”), that terminates the Consulting Agreement, dated November 1, 2025, as amended, between Ms. Kahn and the Company (“Consulting Agreement”), effective as of July 3, 2026. Pursuant to the Kahn Separation Agreement, and in exchange for a general release of claims in favor of the Company and the other released parties, Ms. Kahn received a lump sum cash payment of $0.2 million in lieu of payment of her consulting fees through the end of the term of the Consulting Agreement, reimbursement for certain medical insurance costs, and a grant of shares of unregistered common shares having a fair market value of $0.3 million. As of August 12, 2026, the shares have not been issued. Ms. Kahn will remain subject to certain non-competition, non-solicitation and non-disparagement covenants that survive the termination of the Consulting Agreement.
Current report
On July 8, 2026, the Company received formal notice from Nasdaq confirming the Company has regained compliance with Nasdaq’s Listing Rule 5550(a)(2). According to the notification, Nasdaq determined that, for the ten consecutive trading days from June 15, 2026 through June 29, 2026, the closing bid price of AVAX One’s common shares was at or above the required minimum of $1.00 per share. As a result, Nasdaq concluded that the Company satisfied the minimum bid price requirement, and the matter is now closed.
Current report
The Company is considering and evaluating several potential sites for its first data center project.
Current report
During the six months ended June 30, 2026 total operating expenses increased, as compared to the prior year period, primarily due to the following:
Current report
Total other expenses, net decreased during the three months ended June 30, 2026 primarily due to the prior period loss on debt extinguishment, partially offset by the increase in accretion of interest on debentures due to the issuance of additional debentures.
Removed paragraphs (2)
Previous report
AVAX One is not merely accumulating AVAX tokens as a passive treasury asset. The Company is actively constructing next-generation data center infrastructure capable of supporting both leading blockchain protocols and the rapidly growing demands of artificial intelligence and high-performance computing workloads.
Previous report
The Alberta site remains on schedule for end-client deployment readiness in Q1 2027. The Company also engaged BlueFlare as the infrastructure development partner for the project, and on May 6, 2026, ASCENT Consulting Ltd. was selected to lead engineering and design services for the Alberta site. This is a critical milestone that advances the project from letter of intent stage into formal technical execution.
Reworded paragraphs (33)
Previous wording
In late 2024, the Company initiated its strategic transformation into a diversified technology and digital asset infrastructure company through the acquisition of its first Bitcoin mining site in Alberta, Canada. What began as an entry point into the cryptocurrency sector less than 18 months ago has evolved rapidly into a comprehensive institutional platform bridging traditional capital markets with the onchain financial economy.
Current wording
In late 2024, the Company initiated its strategic transformation into a diversified technology and digital asset infrastructure company through the acquisition of its first Bitcoin Mining site in Alberta, Canada. What began as an entry point into the cryptocurrency sector less than 24 months ago has evolved rapidly into a comprehensive institutional platform bridging traditional capital markets with the onchain financial economy.
Previous wording
Complementing these digital asset initiatives, the Company has leveraged its longstanding operational relationships and deep industry knowledge in Alberta to advance its physical infrastructure footprint. The Company is currently developing a 10 MW Tier 3 microgrid-powered data center, which has been designed and is being constructed in record time at a highly competitive cost per MW. This facility is engineered to support both high-performance Bitcoin mining and artificial intelligence / high performance compute (“AI/HPC”) workloads, reflecting the Company’s forward looking approach to multi-use digital infrastructure.
Current wording
Complementing these digital asset initiatives, the Company has leveraged its longstanding operational relationships and deep industry knowledge in Alberta to advance its physical infrastructure footprint. The Company is evaluating sites to develop a 10 MW Tier 3 microgrid-powered data center.
Previous wording
Management believes this three-pronged strategy of Bitcoin mining operations, Avalanche ecosystem participation, and data center development creates a robust and differentiated business model. It enables the Company to capitalize on the specialized expertise of its leadership team in both cryptocurrency and energy infrastructure. The strategy is expected to deliver stable cash flows in the short to medium term through Bitcoin mining and AVAX staking, while positioning the Company for substantial long-term value creation through the expansion of its data center platform and broader ecosystem investments.
Current wording
Management believes this three-pronged strategy of Avalanche ecosystem participation, Bitcoin Mining operations, and data center development creates a robust and differentiated business model. It enables the Company to capitalize on the specialized expertise of its leadership team in both cryptocurrency and energy infrastructure. The strategy is expected to deliver stable cash flows in the short to medium term through AVAX staking and Bitcoin Mining, while positioning the Company for substantial long-term value creation through the expansion of its data center platform and broader ecosystem investments.
Previous wording
In recent periods, the Company has accelerated its growth trajectory through two concurrent and complementary infrastructure initiatives. First, the Company signed a Front End Engineering and Design (FEED) agreement for the development of a 10 MW AI/HPC-capable microgrid data center in Alberta, Canada. This facility is being purpose-built to meet the highest industry standards for reliability, efficiency, and scalability. Second, the Company completed the acquisition of 220 additional Bitcoin mining machines. This equipment deployment is expected to increase the Company’s operational hash rate capacity in Alberta by approximately 33%, meaningfully expanding its Bitcoin mining output and associated revenue potential.
Current wording
In recent periods, the Company has accelerated its growth trajectory through two concurrent and complementary infrastructure initiatives. First, the Company signed a Front End Engineering and Design (FEED) agreement for the development of a 10 MW AI/HPC-capable microgrid data center in Alberta, Canada. This facility is being purpose-built to meet the highest industry standards for reliability, efficiency, and scalability. The Company completed the acquisition of 220 additional Bitcoin Mining machines which has increased the Company’s operational hash rate capacity in Alberta by approximately 33%, meaningfully expanding its Bitcoin Mining output and associated revenue potential.
Previous wording
As these cashflow generating operations scale, the Company anticipates increased financial flexibility to pursue several value-enhancing initiatives. These include further expansion of its digital asset treasury, opportunistic acquisitions within the Avalanche ecosystem, and strategic investments that contribute to the overall health, security, and adoption of the Avalanche network.
Current wording
AVAX One is not merely accumulating AVAX tokens as a passive treasury asset. As treasury operations scale, the Company anticipates increased financial flexibility to pursue several value-enhancing initiatives. These include further expansion of its digital asset operations, opportunistic acquisitions within the Avalanche ecosystem, and strategic investments that contribute to the overall health, security, and adoption of the Avalanche network.
Previous wording
Management remains confident that this integrated model of combining revenue producing infrastructure assets with active ecosystem participation will differentiate AVAX One in the market and create enduring value for shareholders as the convergence of cryptocurrency, artificial intelligence, and digital infrastructure continues to accelerate.
Current wording
Management remains confident that this integrated model of combining revenue producing assets with active ecosystem participation will differentiate AVAX One in the market and create enduring value for shareholders.
Previous wording
On March 13, 2026, the Company received a letter from Nasdaq that it no longer complies with Rule 5550(a)(2) of Nasdaq’s Listing Rules which require listed securities to maintain a minimum bid price of $1 per share. Based upon the closing bid price for the last 30 consecutive business days (January 29, 2026 to March 12, 2026), the Company no longer met this requirement.
Current wording
On March 13, 2026, the Company received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) that it no longer complied with Rule 5550(a)(2) of Nasdaq’s Listing Rules, which requires listed securities to maintain a minimum bid price of $1 per share. Based upon the closing bid price for the last 30 consecutive business days (January 29, 2026 to March 12, 2026), the Company no longer met this requirement.
Previous wording
The Company presented its appeal to the Hearing Panel (the “Panel”), and the hearing was held on April 21, 2026. On May 8, 2026, the Company received from the Panel an exception to cure its listing deficiencies and provides for the continued listing on The Nasdaq Stock Market subject to certain conditions. The conditions include, among other things, that the Company must demonstrate compliance with the minimum bid price of $1 per share for a minimum of 10 consecutive trading days on or before July 6, 2026. The Company plans to complete a reverse stock split (the "RSS") to cure the deficiency and will seek approval for the RSS at the annual shareholder meeting on May 29, 2026. The Company is confident that the RSS will be approved since enough shareholder votes in favor of the RSS have been secured as of May 5, 2026.
Current wording
The Company presented its appeal to the Hearing Panel (“Panel”), and the hearing was held on April 21, 2026. On May 8, 2026, the Company received from the Panel an exception to cure its listing deficiencies and provides for the continued listing on The Nasdaq Stock Market subject to certain conditions. The conditions include, among other things, that the Company must demonstrate compliance with the minimum bid price of $1 per share for a minimum of 10 consecutive trading days on or before July 6, 2026.
Previous wording
On April 20, 2026, the Company executed a letter of intent with BlueFlare Energy Solutions Inc. (“BlueFlare”), an Alberta-based infrastructure developer, for the development of powered land capable of supporting a 10 MW AI/HPC Edge Compute facility. This initiative represents the Company’s formal expansion into the data center and digital infrastructure vertical, positioning AVAX One to participate in the rapidly accelerating demand for AI and high-performance computing capacity.
Current wording
On April 20, 2026, the Company executed a letter of intent with BlueFlare Energy Solutions Inc., an Alberta-based infrastructure developer, for the development of powered land capable of supporting a 10 MW AI/HPC Edge Compute facility. This initiative represents the Company’s formal expansion into the data center and digital infrastructure vertical, positioning AVAX One to participate in the rapidly accelerating demand for AI and high-performance computing capacity.
Previous wording
The initiative addresses the power bottleneck which is a foundational constraint for AI/HPC Edge computing capacity by presenting a scalable and replicable micro grid model in 10 MW increments. This advantageous differentiator is a key element to enabling the Company to achieve recurring revenue at scale. This transformative event demonstrates a power synergy with the Company’s existing Avalanche treasury and on-chain strategy by positioning the Company at the intersection of on-chain finance and the physical compute structure that will power it. Furthermore, this creates a clear path to recurring high-margin revenue through long-term infrastructure agreements with end clients thus creating sustainable shareholder value opportunities.
Current wording
The initiative addresses the power bottleneck that is a foundational constraint for AI/HPC Edge computing capacity by presenting a scalable and replicable micro grid model in 10 MW increments. This advantageous differentiator is a key element to enabling the Company to achieve recurring revenue at scale. This transformative event demonstrates a power synergy with the Company’s existing Avalanche treasury and onchain strategy by positioning the Company at the intersection of onchain finance and the physical compute structure that will power it. Furthermore, this creates a clear path to recurring high-margin revenue through long-term infrastructure agreements with end clients thus creating sustainable shareholder value opportunities.
Previous wording
In November 2025, the Company’s board of directors authorized a share repurchase program (the “Repurchase Program”) under which the Company may repurchase up to $40.0 million of its outstanding common shares, for a period of 12 months, subject to contractual requirements. The board of directors will periodically review the Company’s Repurchase Program and may decide to extend its term or increase the authorized amount. As of March 31, 2026, the Company has repurchased 3,273,383 shares in the open market for a total cost of $3.1 million pursuant to the Repurchase Program. Subsequently, the Company repurchased an additional 182,620 shares in the open market for a total cost of $88.5 thousand.
Current wording
In November 2025, the Company’s board of directors authorized a share repurchase program (the “Repurchase Program”) under which the Company may repurchase up to $40.0 million of its outstanding common shares, for a period of 12 months, subject to contractual requirements. The Board will periodically review the Repurchase Program and, among other things, may decide to extend its term or increase the authorized amount. As of June 30, 2026, the Company has repurchased 402,537 shares in the open market for a total cost of $3.9 million pursuant to the Repurchase Program. From July 1, 2026 to August 12, 2026, the Company repurchased an additional 57,503 shares in the open market for a total cost of $0.3 million.
Previous wording
We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an “emerging growth company,” we intend to rely on certain of these exemptions from, without limitation, (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an “emerging growth company” until the earliest of (a) the last day of our fiscal year following the 5th anniversary of the closing of our initial public offering, (b) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (c) the last day of our fiscal year in which we are deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, or Exchange Act (which would occur if the market value of our equity securities that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter), or (d) the date on which we have issued more than $1 billion in nonconvertible debt during the preceding three-year period.
Current wording
We continue to evaluate the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an “emerging growth company,” we have relied, and intend to continue to rely, on certain of these exemptions from, without limitation, (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an “emerging growth company” until the earliest of (a) the last day of our fiscal year following the 5th anniversary of the closing of our initial public offering, (b) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (c) the last day of our fiscal year in which we are deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, or Exchange Act (which would occur if the market value of our equity securities that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter), or (d) the date on which we have issued more than $1 billion in nonconvertible debt during the preceding three-year period.
Previous wording
Our digital assets were comprised of the following as of March 31, 2026 and December 31, 2025, which value may be materially impacted as the market value of digital assets fluctuates.
Current wording
Our digital assets were comprised of the following as of June 30, 2026 and December 31, 2025, the value of which may be materially impacted as the market value of digital assets fluctuates.
Previous wording
Our principal activities consist primarily from investing, staking and evaluating digital tokens technologies that run on the Avalanche public blockchain network. Due to the current nature of our operations and the scale of business transacted on the Avalanche Network, a concentration could potentially result in a vulnerability. The concentration and potential associated vulnerabilities include, but are not limited to:
Current wording
Our principal activities consist primarily of investing, staking and evaluating digital tokens technologies that run on the Avalanche public blockchain network. Due to the current nature of our operations and the scale of business transacted on the Avalanche Network, a concentration could potentially result in a vulnerability. The concentration and potential associated vulnerabilities include, but are not limited to:
Previous wording
RESULTS OF OPERATIONS FOR THEthree months ended March 31, 2026 and 2025
Current wording
RESULTS OF OPERATIONS FOR THEthree and six months ended June 30, 2026 and 2025
Previous wording
Total revenue was comprised of the following during the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
Total revenue was comprised of the following during the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
Pursuant to our Bitcoin Mining, we earn revenue from the production of certain digital assets through mining activities. Our Bitcoin Mining operations commenced in December 2024 with the acquisition of first mining facility in Alberta, Canada (the “Redwater acquisition”) and then in January 2025 we added an additional mining facility with the Bald Eagle acquisition.
Current wording
From our Bitcoin Mining operations, we earn revenue from the production of certain digital assets through mining activities. Our Bitcoin Mining operations commenced in December 2024 with the acquisition of our first mining facility in Alberta, Canada (the “Redwater acquisition”), and, then in January 2025, we added an additional mining facility with the Bald Eagle acquisition.
Previous wording
Operating expenses were comprised of the following during the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
Operating expenses were comprised of the following during the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
Total operating expenses increased primarily due to the following:
Current wording
Total operating expenses increased during the three months ended June 30, 2026, as compared to the prior year period, primarily due to the following:
Previous wording
Total other (expenses) income were comprised of the following during the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
Total other (expenses) income were comprised of the following during the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
Other expenses increased primarily due to the change in fair value of derivative liabilities and the increase in accretion of interest on debentures. The change in fair value of derivative liabilities is directly attributable to the reclass of derivatives to additional-paid-in capital during the second quarter of 2025 as a result of the conversion of our functional currency, from the Canadian dollar to the United States dollar, effective April 1, 2025. The increase in accretion of interest on debentures is primarily due to the issuance of additional debentures.
Current wording
During the six months ended June 30, 2026 total other expenses, net decreased primarily due to the prior year loss on debt extinguishment, partially offset by the change in fair value of derivative liabilities and the increase in accretion of interest on debentures. The change in fair value of derivative liabilities is directly attributable to the reclass of derivatives to additional-paid-in capital during the second quarter of 2025 as a result of the conversion of our functional currency, from the Canadian dollar to the United States dollar, effective April 1, 2025. The increase in accretion of interest on debentures is primarily due to the issuance of additional debentures.
Previous wording
The following table summarizes our total revenues, by segment, during the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our total revenues, by segment, during the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
Total revenue increased during the three months ended March 31, 2026 primarily due to the Avalanche Protocol operations, which commenced operations in the fourth quarter of 2025 with the implementation of our digital asset strategy, coupled with the increase in our Bitcoin Mining operations primarily due to the increase in our Bitcoin Mining infrastructure.
Current wording
Total revenue increased during the three and six months ended June 30, 2026 primarily due to the Company’s Avalanche Protocol operations, which commenced operations in the fourth quarter of 2025 with the implementation of our digital asset strategy, coupled with the increase in our Bitcoin Mining operations primarily due to the increase in our Bitcoin Mining infrastructure.
Previous wording
The following table summarized our operating income (loss), by segment, during the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our operating income (loss), by segment, during the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
The total increase in operating loss during the three months ended March 31, 2026 is primarily attributable to the decline in market value of AVAX tokens, which resulted in an unrealized loss on market valuation of digital assets ($36.3 million), coupled with an impairment of assets related to the liquid staking tokens ($1.1 million) and the realized loss on digital asset transactions ($5.3 million) related to the deployment of AVAX tokens to the liquid staking tokens (tAVAX tokens), partially offset by the increase in revenue ($2.2 million). The operating loss was further impacted by the increase in cost of revenue, excluding depreciation ($1.0 million), which is directly related to the increase in our Bitcoin Mining operations and the increase in selling, general and administrative expenses ($0.9 million) primarily due to costs associated with promoting the Company and insurance.
Current wording
The total increase in operating loss during the three and six months ended June 30, 2026 is primarily attributable to the decline in market value of AVAX tokens, which resulted in an unrealized loss on market valuation of digital assets ($29.9 million and $66.1 million, respectively), coupled with an impairment of assets related to the liquid staking tokens ($2.6 million and $3.7 million, respectively) and the realized loss on digital asset transactions ($20.0 thousand and $5.3 million, respectively) related primarily to the deployment of AVAX tokens to the liquid staking tokens (tAVAX tokens), partially offset by the increase in revenue ($2.4 million and $4.6 million, respectively). The operating loss was further impacted by the increase in cost of revenue, excluding depreciation ($0.6 million and $1.5 million, respectively), which is directly related to the increase in our Bitcoin Mining operations and the increase in selling, general and administrative expenses ($1.0 million and $1.9 million, respectively) primarily due to costs associated with promoting the Company and insurance.
Previous wording
Our primary need for liquidity is to fund working capital requirements, capital expenditures, and for general corporate purposes. Our ability to fund operations and make planned capital expenditures and debt service obligations depends on future operating performance and cash flows, which are subject to prevailing economic conditions, financial markets, business and other factors. The cash on hand is expected to be sufficient to fund our operating expenses and capital expenditure requirements for at least twelve months from the date these financial statements are issued.
Current wording
Our primary need for liquidity is to fund working capital requirements, capital expenditures, and for general corporate purposes. Our ability to fund operations and make planned capital expenditures and debt service obligations depends on future operating performance and cash flows, which are subject to prevailing economic conditions, financial markets, business and other factors. Our sources of liquidity, including cash on hand, digital assets earned through staking arrangements and Bitcoin Mining, is expected to be sufficient to fund our operating expenses and capital expenditure requirements for at least twelve months from the date these financial statements are issued.
Previous wording
Though we experienced a loss from operations of approximately $44.6 million during the three months ended March 31, 2026, this loss included $43.0 million of non-cash charges related to: 1) depreciation and amortization ($0.3 million); 2) impairment of assets ($1.1 million); and 3) realized and unrealized losses on digital asset transactions and market valuations ($5.3 million and $36.3 million, respectively). Adjusting for these non-cash charges, the adjusted operating loss would be $1.6 million.
Current wording
Though we experienced a loss from operations of approximately $78.0 million during the six months ended June 30, 2026, this loss included $75.7 million of non-cash charges related to: (1) depreciation and amortization ($0.5 million); (2) impairment of assets ($3.7 million); and (3) realized and unrealized losses on digital asset transactions and market valuations ($5.3 million and $66.1 million, respectively). To supplement our GAAP financial results, we present non-cash loss from operations, a non-GAAP financial performance measure which excludes these non-cash charges, to provide useful information to help investors evaluate our operating performance because it: enables investors to compare this measure and component adjustments to similar information provided by peer companies and our past financial performance. Adjusting for these non-cash charges, the non-cash loss from operations would be $2.3 million during the six months ended June 30, 2026.
Previous wording
The following information has been derived from the accompanying unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report. The change in cash and cash equivalents during the three months ended March 31, 2026 and 2025 is as follows (presented in thousands):
Current wording
The following information has been derived from the accompanying unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report. The change in cash, cash equivalents and restricted cash during the six months ended June 30, 2026 and 2025 is as follows (presented in thousands):
Previous wording
Net cash used in operating activities was $1.4 million and $2.2 million during the three months ended March 31, 2026 and 2025, respectively, a decrease of $0.8 million, primarily due to the net change in operating assets and liabilities.
Current wording
Net cash used in operating activities was $5.1 million and $3.1 million during the six months ended June 30, 2026 and 2025, respectively, an increase of $2.0 million, which is primarily due to the $3.6 million net change in operating assets and liabilities, partially offset by the decrease in operating results, as adjusted for non-cash items of $1.5 million.
Previous wording
Non-cash items increased primarily due to the unrealized loss on digital assets of $36.3 million, asset impairments of $1.1 million, realized loss on digital asset transactions of $5.3 million and the change in amortization of debt issuance costs of $0.9 million, coupled with the change in fair value of derivative liabilities of $3.0 million. The net change in operating assets and liabilities is primarily due the net change in prepaid expenses and other current assets of $2.5 million, partially offset by the increase in revenue from digital asset production $2.2 million.
Current wording
Non-cash items increased primarily due to the unrealized loss on digital assets of $66.1 million, asset impairments of $3.7 million, realized loss on digital asset transactions of $5.3 million and the change in amortization of debt issuance costs of $1.6 million, coupled with the change in fair value of derivative liabilities of $3.0 million, partially offset by the decrease in loss on debt extinguishment of $4.7 million. The net change in operating assets and liabilities is primarily due the net change in prepaid expenses and other current assets of $1.2 million, partially offset by the increase in revenue from digital asset production $4.6 million.
Previous wording
Net cash used in investing activities during the three months ended March 31, 2026 was directly attributable to the purchase of equipment and digital assets. During the comparable prior year period, the Company paid $4.8 million for an acquisition within the Bitcoin Mining segment.
Current wording
Net cash used in investing activities was $2.6 million and $5.7 million during the six months ended June 30, 2026 and 2025, respectively, a decrease of $3.1 million, which is primarily due to the cash paid in prior year for an acquisition, partially offset by the increase in equipment purchased within the Bitcoin Mining segment.
Previous wording
Net cash provided by financing activities was $3.7 million during the three months ended March 31, 2026 as compared to the $7.9 million of net cash provided during the comparable prior year period. The net change is primarily due to decrease in proceeds from debentures of $1.5 million, coupled with the shares repurchased in the open market of $3.0 million.
Current wording
Net cash provided by financing activities was $2.3 million and $8.5 million during the six months ended June 30, 2026 and 2025, respectively, a decrease of $6.3 million, which is primarily due to the shares repurchased in the open market of $3.9 million. coupled with the decrease in proceeds from debenture and warrant issuances of $1.8 million.
Previous wording
See the notes to our unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and 2025, included within this Quarterly report.
Current wording
See the notes to our unaudited condensed consolidated financial statements for the six months ended June 30, 2026 and 2025, included within this Quarterly report.