MARA Holdings, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 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 6, 2026
MARA$6.35+8.1%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 2026-05-11.
0001507605-26-000016
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001507605-26-000022
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 178 previous paragraphs and 223 current paragraphs.
97 unchanged; 65 reworded; 45 added; 15 removed; 1 previous and 16 current paragraphs rearranged.
Tables are not compared: 10 previous and 14 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 (45)
Current report
The term “Bitcoin” with a capital “B” is used to denote the Bitcoin protocol which implements a highly available, public, permanent, and decentralized ledger. The terms “bitcoin” with a lower case “b” and “BTC” are used to denote the digital asset, bitcoin.
Current report
•Subsequent to quarter end, we entered into a membership interest purchase agreement with HIF USA LLC (“HIF”) to acquire all of the issued and outstanding membership interests of MAT 1177 LLC (the “Project Company”), securing rights to a site in Matagorda County, Texas with access to 2,000 megawatts (“MW”) of power capacity for an aggregate purchase price of up to $600.0 million. We intend to develop the site into a large-scale digital infrastructure campus supporting high-performance computing and Bitcoin mining operations.
Current report
•Subsequent to quarter end, we entered into two bitcoin-backed credit facilities with Coinbase Credit, Inc. (“Coinbase”) and Two Prime Lending Limited (“Two Prime”) providing for an aggregate $600.0 million of incremental borrowings. In addition, we refinanced our existing $150.0 million borrowing with Coinbase (the “2026 Line of Credit”) and consolidated it into the new Coinbase facility. The facilities were initially collateralized by 18,750 bitcoin. Proceeds are expected to be used for general corporate purposes, including funding a portion of the cash consideration for the Long Ridge acquisition.
Current report
With the closing of the Long Ridge acquisition and the full energization of the site in Matagorda County, Texas, our potential portfolio of power capacity is expected to expand to approximately 4.8 GW.
Current report
Management believes our recent investments, relative position and liquidity, support the execution of our long-term growth strategy.
Current report
Subsequent to quarter end, we entered into two bitcoin-backed term loan facilities with Coinbase and Two Prime providing for $600.0 million of incremental borrowings. The Coinbase facility refinances and consolidates our existing $150.0 million 2026 Line of Credit with Coinbase and provides $300.0 million of additional funding. The Coinbase facility bears interest at a floating rate equal to the arithmetic average of the upper and lower bounds of the target range for federal funds transactions (the “Fed Funds Mid Rate”) plus 3.875% per annum. The $300.0 million Two Prime facility bears interest at a fixed rate of 7.65% per annum. The facilities mature on August 4, 2028 and August 3, 2028, respectively, with the Coinbase facility subject to an automatic one-year extension unless timely canceled by either party. In connection with these facilities, 18,750 bitcoin were pledged as initial collateral as of August 4, 2026, the closing date of both transactions.
Current report
In July 2026, we further extended our digital infrastructure strategy through the acquisition of the Project Company, subject to approval by the Electric Reliability Council of Texas, Inc. (“ERCOT”). The Project Company holds (i) rights under certain purchase and sale contracts to acquire land located in Matagorda County, Texas, (ii) title to an additional parcel of adjacent land, and (iii) rights under a letter agreement with an electric utility company relating to the provision of 2,000 MW of power capacity to the site. The Project Company intends to develop the site as a large-scale digital infrastructure campus capable of supporting high-performance computing workloads, as well as flexible compute operations, including Bitcoin mining.
Current report
We generated revenues of $174.9 million for the three months ended June 30, 2026, compared to $238.5 million in the prior year period. The $63.6 million, or approximately 27%, decrease in revenues was driven by a decrease in Bitcoin mining revenue and, to a lesser extent, a decrease in other digital assets mining revenue, other revenue and the elimination of hosting revenue.
Current report
Other digital assets mining revenue decreased 93%, primarily due to lower production resulting from the wind-down of certain other digital asset mining activities. Hosting revenue was eliminated for the three months ended June 30, 2026, following the expiration of the remaining hosting agreement in the first quarter of 2026. Other revenues decreased $0.4 million, or approximately 7%.
Current report
Costs and operating expenses (income)
Current report
Purchased energy costs for the three months ended June 30, 2026 totaled $48.8 million compared to $41.7 million in the prior year period, an increase of $7.0 million, or approximately 17%. The increase was primarily driven by the growth of our owned mining operations through acquisitions and increased utilization of capacity at an East Ohio mining site following the expiration of a hosting arrangement, while purchased energy consumption remained relatively consistent with the prior year period. During the three months ended June 30, 2026, our total hashrate increased 22% to 70.3 EH/s, primarily through improvements in miner efficiency and the scaling of our mining fleet. As a result, Cost per Petahash per day improved approximately 4%, from $28.7 to $27.7. Purchased energy costs per bitcoin for our owned mining sites, however, increased to $38,690 compared to $33,735 in the prior year period, primarily due to higher network difficulty resulting from an increase in global hashrate and an increase in cost per kWh.
Current report
Operating and maintenance costs for the three months ended June 30, 2026 were $26.9 million compared to $22.4 million in the prior year period, an increase of $4.5 million or approximately 20%, primarily driven by increased site and miner repair and maintenance costs, partially offset by lower shipping and warehouse fees during the quarter.
Current report
Third-party hosting and other energy costs for the three months ended June 30, 2026 totaled $69.2 million compared to $69.0 million in the prior year period, a relatively flat increase from the prior year period. These costs primarily consist of colocation services related to third-party hosted sites and energy expenses related to mining other digital assets. The slight increase was primarily due to the addition of energized miners and the expansion of our third-party hosted operations, substantially offset by lower hosting and energy costs at certain third-party hosting sites. Our most significant third-party hosting arrangements are scheduled to expire, beginning in the third quarter of 2027 and expected to fully conclude during the first quarter of 2028. These expirations are expected to eliminate third-party hosting costs and improve our cost per kWh over time as the arrangements expire.
Current report
General and administrative expenses were $114.7 million for the three months ended June 30, 2026, compared to $92.9 million in the prior year period. The $21.8 million, or approximately 23% increase, was primarily driven by a $10.2 million litigation settlement recognized in the current period, the inclusion of Exaion’s general and administrative expenses following its acquisition, and acquisition and integration costs, partially offset by a decrease in professional and travel expenses in the current period.
Current report
Depreciation and amortization for the three months ended June 30, 2026 totaled $174.7 million compared to $161.7 million in the prior year period. The $12.9 million, or approximately 8%, increase was driven by $28.1 million of accelerated depreciation related to the assessment of expected future use of certain miners, partially offset by lower depreciation as mining rigs reached the end of their useful lives.
Current report
We recognized a loss on digital assets of $249.6 million for the three months ended June 30, 2026 compared to a gain of $846.0 million in the prior year period. The $1.1 billion decrease from the prior year period was primarily attributable to the significant decline in the price of bitcoin and the decrease in our bitcoin holdings.
Current report
Impairment of goodwill and other assets
Current report
During the three months ended June 30, 2025, a severe storm caused irreparable damage to certain mining equipment at our Garden City mining site. In accordance with ASC 360 –Property, Plant, and Equipment, any unforeseen or unexpected retirements should result in a gain or loss recognized in earnings. As such, we recognized an impairment of $26.3 million related to the damaged miners for the three months ended June 30, 2025. Should we successfully receive insurance proceeds, they will be recognized as a gain in the period in which they are received. There were no such impairments in the current year period.
Current report
Restructuring costs for the three months ended June 30, 2026 were $1.8 million, reflecting an additional reserve established during the quarter in connection with the 2026 Restructuring Plan (as defined below) relating to contract termination and employee separation costs. There were no such costs in the prior year period.
Current report
Other income (loss)
Current report
Interest income increased by $0.6 million compared to the prior year period, primarily due to a higher average balance of cash and cash equivalents, partially offset by interest income earned on loaned bitcoin under our digital asset management strategy. Interest expense decreased by $6.6 million compared to the prior year period, primarily due to the repayment of our prior credit facilities during the first quarter of 2026, which eliminated the related interest expense incurred in the prior year period. The decrease was partially offset by the interest expense associated with the interest bearing Convertible Notes and the 2026 Line of Credit.
Current report
Other of $2.6 million for the three months ended June 30, 2026 was primarily due to investment income of $1.2 million from internal bitcoin trading activities and other income generated by Exaion, partially offset by an increase to the allowance for credit loss resulting from an updated credit assessment.
Current report
Income tax expense
Current report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Current report
Revenues
Current report
(1) Includes 85 and 106 bitcoin representing our share of the equity method investee, the ADGM Entity, for the six months ended June 30, 2026 and 2025, respectively.
Current report
Costs and operating expenses (income)
Current report
General and administrative
Current report
General and administrative expenses were $201.6 million for the six months ended June 30, 2026, compared to $178.8 million in the prior year period. The $22.7 million, or approximately 13%, increase was primarily attributable to a litigation settlement and acquisition and integration costs, partially offset by lower stock-based compensation expense and professional fees compared to the prior year period.
Current report
Depreciation and amortization
Current report
The fair value of the derivative instrument decreased for the six months ended June 30, 2026 compared to the prior year period, primarily due to the movement in electricity forward curve prices during the respective periods.
Current report
Impairment of assets
Current report
Due to a severe storm, we experienced irreparable damage to certain mining equipment at our Garden City mining site and as such, recognized an impairment of $26.3 million for the six months ended June 30, 2025. There were no such impairments in the current year period.
Current report
Taxes other than on income
Current report
Taxes other than on income were $4.0 million for the six months ended June 30, 2026 compared to $5.5 million in the prior year period.
Current report
Research and development
Current report
Research and development expenses were $15.4 million for the six months ended June 30, 2026 compared to $17.8 million in the prior year period.
Current report
Restructuring costs
Current report
Other income (loss)
Current report
We recognized a loss on digital assets - receivable, net of $397.4 million for the six months ended June 30, 2026 compared to gain of $230.5 million in the prior year period. The $627.8 million decrease was primarily attributable to the fair value associated with our bitcoin loaned and pledged as collateral.
Showing the first 40 of 45 passages. Open the source sections for the rest.
Removed paragraphs (15)
Previous report
On April 29, 2026, we, through our wholly owned subsidiary MARA USA Corporation, entered into an equity purchase agreement to acquire 100% of the issued and outstanding membership interests in Long Ridge Energy & Power LLC (“Long Ridge”) from subsidiaries of FTAI Infrastructure Inc. for a base purchase price of approximately $1.5 billion, subject to customary purchase price adjustments, including the assumption of Long Ridge’s existing indebtedness. The acquisition is expected to close in the second half of 2026, subject to regulatory approvals under the Hart-Scott-Rodino Act and from the Federal Energy Regulatory Commission, as well as satisfaction of other customary closing conditions.
Previous report
Long Ridge’s assets include a 505 megawatt (“MW”) nameplate capacity combined-cycle gas turbine power plant in Hannibal, Ohio (currently authorized to sell 485 MW and expected to increase to the full 505 MW in the second half of 2026) and over 1,600 contiguous acres with access to water, fiber, and rail infrastructure. The facility operates within the PJM interconnection with approximately 100 million cubic feet per day of vertically integrated fuel supply and long-dated power hedge agreements, and all-in operating costs are expected to be less than $15 per MWh. The facility is adjacent to our existing Hannibal, Ohio Bitcoin mining site.
Previous report
We believe the Long Ridge site is distinctly positioned to support multiple monetization pathways over time, including AI, HPC, critical IT workloads, flexible compute operations (including Bitcoin mining) and wholesale power generation into the PJM grid. The Hannibal campus has attracted interest from potential investment-grade tenants. We expect to commence construction of an initial AI and critical IT build out in the first half of 2027, with initial capacity targeted to be ready for service in mid-2028.
Previous report
To finance the acquisition, we entered into a commitment letter with Barclays Bank PLC (“Barclays”) pursuant to which Barclays committed to provide a 364-day senior secured bridge term loan facility in an aggregate principal amount of up to $785.0 million, which is intended to backstop the assumption of Long Ridge’s existing indebtedness. The equity purchase agreement may be terminated by either party if the acquisition has not closed by November 30, 2026 (or June 30, 2027 if certain regulatory conditions remain unsatisfied). Under certain circumstances, we may be required to pay a termination fee of $75.0 million.
Previous report
•On January 21, 2026, we increased our footprint in Central Nebraska through an acquisition of a 42 MW total capacity data center adjacent to an existing site, expanding our Nebraska campus capacity by approximately 40%.
Previous report
•On January 29, 2026, we secured a $150.0 million line of credit, collateralized by a portion of our bitcoin holdings. We utilized the proceeds, together with proceeds from bitcoin sales, to fully repay $350.0 million of our Previous Line of Credit.
Previous report
•On February 20, 2026, we acquired a majority equity interest in Exaion SaS (“Exaion”), a subsidiary of EDF Pulse Holding, strengthening our position in high-performance computing and secure cloud and AI infrastructure.
Previous report
•On February 26, 2026, we announced a strategic agreement (the “Strategic Agreement”) with Starwood Digital Ventures (“Starwood”), marking an important step toward our AI and high-performance computing (“HPC”) initiatives. Under the Strategic Agreement, we will jointly develop, finance and operate AI and HPC infrastructure on select power-rich sites within our existing portfolio.
Previous report
•During the quarter, we repurchased approximately $1.0 billion of our 0.00% convertible senior notes. In connection with the repurchases, we sold approximately 15,133 bitcoin, generating proceeds of approximately $1.1 billion, used to fund the notes repurchase transactions, with the remainder of the proceeds available for general corporate purposes. Refer to Note 13 – Debt, in the notes to our Condensed Consolidated Financial Statements for further information.
Previous report
•During the quarter, we committed to and initiated a restructuring plan (the “2026 Restructuring Plan”) focused on improving operational efficiency and aligning resources with our strategic objectives. As a result, we incurred restructuring costs of approximately $45.9 million.
Previous report
Costs and operating expenses
Previous report
General and administrative expenses were $86.9 million for the three months ended March 31, 2026, compared to $85.9 million in the prior year period. The $1.0 million, or approximately 1%, increase was primarily due to acquisition and integration costs incurred in connection with our expanding global footprint, as well as higher personnel costs to support our growing operations, partially offset by stock-based compensation expense compared to the prior year period.
Previous report
Other loss
Previous report
Income tax benefit
Previous report
Long Ridge Acquisition
Reworded paragraphs (65)
Previous wording
MARA is a digital infrastructure company built to convert energy into high-value compute workloads. We primarily leverage Bitcoin mining as our core business. Building on this foundation, we have begun pursuing opportunities to expand our infrastructure capacity into adjacent high-value workloads, including artificial intelligence (“AI”), high-performance computing (“HPC”) and critical IT. As our expansion progresses, we intend to allocate capacity across workloads based on economics and demand to optimize asset utilization.
Current wording
MARA is an owner, developer and operator of digital infrastructure built to convert energy into high-value compute workloads. Bitcoin mining serves as the foundation of our business, and we have begun pursuing opportunities to expand our infrastructure capacity into adjacent high-value workloads, including artificial intelligence (“AI”), high-performance computing (“HPC”) and critical information technology (“IT”). We are vertically integrated across power, land and compute, with a portfolio of energized utility-scale power assets and a decade of large-scale compute operating experience. As our expansion progresses, we intend to allocate capacity across workloads based on economics and demand to optimize asset utilization.
Previous wording
Build AI and digital infrastructure at scale. We are developing large-scale data center campuses. including co-located generation, land, water access and grid interconnection, to serve the growing demand for training, inference and critical IT workloads.
Current wording
Build AI and digital infrastructure at scale. We are developing large-scale data center campuses, including co-located generation, land, water access and grid interconnection, to serve the growing demand for training, inference and critical IT workloads, with the goal of increasing the proportion of revenue derived from these higher-value workloads.
Previous wording
•Subsequent to quarter end, we entered into an equity purchase agreement to acquire Long Ridge for approximately $1.5 billion. In connection with the Long Ridge equity purchase agreement, we entered into a commitment letter with Barclays to provide a senior secured bridge term loan facility for an aggregate amount of up to $785.0 million.
Current wording
•On April 29, 2026, we entered into an equity purchase agreement to acquire Long Ridge Energy & Power LLC (“Long Ridge”) for an approximately $1.5 billion enterprise value. In connection with the Long Ridge equity purchase agreement, we entered into a commitment letter with Barclays Bank PLC (“Barclays”) to provide a senior secured bridge term loan facility for an aggregate amount of up to $785.0 million.
Previous wording
During the three months ended March 31, 2026, we mined 2,247 bitcoin, a decrease of 39 bitcoin, or 2%, from the prior year period. The decrease was primarily due to an increase in the global hashrate, resulting in higher network difficulty and fewer blocks mined, partially offset by an increase in our average operational hashrate driven by the continued fleet expansion and the energization of new mining capacity.
Current wording
During the six months ended June 30, 2026, we mined 4,669 bitcoin, an increase of 25 bitcoin, or 1%, from the prior year period. The increase was primarily due to an increase in our average operational hashrate driven by the continued fleet expansion and the energization of new mining capacity, partially offset by an increase in the global hashrate, resulting in higher network difficulty and fewer blocks mined. In addition, our mining operations provide operational flexibility, as mining equipment can be rapidly deployed at newly energized sites to generate revenue as AI infrastructure is developed, maintaining productive utilization of our energy assets throughout the development cycle.
Previous wording
As of March 31, 2026, we owned approximately 495,000 mining rigs globally, including our share of mining rigs from our equity method investee, the Abu Dhabi Global Markets company (the “ADGM Entity”), with an energized hashrate of approximately 72.2 exahashes per second (“EH/s”). To stay competitive, we remain focused on strategically deploying additional mining rigs and scaling our operations, while managing our fleet as it ages along the obsolescence curve. In addition, we continuously evaluate strategic opportunities to support our growth strategy and seek to enhance operational efficiencies by utilizing efficient mining rigs and securing supply contracts. During the quarter we purchased 2.4 EH of next-generation used ASIC miners, still under warranty, at below-market prices, to replace legacy machines and enhance operational efficiency. Going forward, we expect to make smaller, targeted replacements only when the economics are accretive, rather than large-scale purchases.
Current wording
As of June 30, 2026, we owned approximately 440,000 mining rigs globally, including our share of mining rigs from our equity method investee, the Abu Dhabi Global Markets company (the “ADGM Entity”), with an energized hashrate of approximately 70.3 exahashes per second (“EH/s”). To stay competitive, we remain focused on strategically deploying additional mining rigs and scaling our operations, while managing our fleet as it ages along the obsolescence curve. In addition, we continuously evaluate strategic opportunities to support our growth strategy and seek to enhance operational efficiencies by utilizing efficient mining rigs and securing supply contracts. At the beginning of the year, we purchased 2.4 EH of next-generation used application-specific integrated circuit (ASIC) miners, still under warranty, at below-market prices, to replace legacy machines and enhance operational efficiency. We continued this strategy during the second quarter of 2026 by entering into an agreement to purchase additional miners. Going forward, we expect to make smaller, targeted replacements only when the economics are accretive, rather than large-scale purchases.
Previous wording
Our revenues are generally comprised of block rewards earned in bitcoin as a result of successfully solving blocks, and transaction fees earned for verifying transactions in support of the blockchain. Historically, we have held bitcoin produced from our mining operations or purchased on the open market on our Condensed Consolidated Balance Sheets and in 2025, we changed our digital asset management strategy to permit sales of bitcoin generated from operations. In 2026, we expanded the strategy to allow for sales of bitcoin held on our balance sheet. Accordingly, we may hold bitcoin for long-term investment purposes and may also sell bitcoin from time to time, as well as purchase bitcoin opportunistically, in each case subject to market conditions and our capital allocation priorities. During the three months ended March 31, 2026, we sold approximately 20,880 bitcoin as part of our strategy to fund operations, support growth opportunities and manage liquidity.
Current wording
Our revenues are generally comprised of block rewards earned in bitcoin as a result of successfully solving blocks, and transaction fees earned for verifying transactions in support of the blockchain. Historically, we have held bitcoin produced from our mining operations or purchased on the open market on our Condensed Consolidated Balance Sheets, and in 2025, we changed our digital asset management strategy to permit sales of bitcoin generated from operations. In 2026, we expanded the strategy to allow for sales of bitcoin held on our balance sheet. Accordingly, we may hold bitcoin for long-term investment purposes and may also sell bitcoin from time to time, as well as purchase bitcoin opportunistically, in each case subject to market conditions and our capital allocation priorities. During the six months ended June 30, 2026, we sold approximately 23,093 bitcoin as part of our strategy to fund operations, support growth opportunities and manage liquidity.
Previous wording
As of March 31, 2026, we held approximately 35,303 bitcoin, including 9,995 bitcoin under our digital asset management strategy, on our Condensed Consolidated Balance Sheets, with a carrying value of approximately $2.4 billion. The fair value of our bitcoin may be materially impacted as the market value of bitcoin fluctuates. Management believes, given our recent investments, coupled with our relative position and liquidity, we are well-positioned to execute our long-term growth strategy.
Current wording
As of June 30, 2026, we held approximately 35,577 bitcoin, including 9,270 bitcoin under our digital asset management strategy, on our Condensed Consolidated Balance Sheets, with a carrying value of approximately $2.1 billion. The fair value of our bitcoin may be materially impacted as the market value of bitcoin fluctuates.
Previous wording
Energy cost is the most significant cost driver for Bitcoin mining and represented 52.5% and 38.3%, as a percentage of our owned mining revenues for the three months ended March 31, 2026 and 2025, respectively. This excludes energy costs from third-party hosted sites.
Current wording
Energy cost is the most significant cost driver for Bitcoin mining and represented 54.9% and 34.1%, as a percentage of our owned mining revenues for the three months ended June 30, 2026 and 2025, respectively, and 53.8% and 36.1% for the six months ended June 30, 2026 and 2025, respectively. The increase in energy costs as a percentage of owned mining revenues for both periods was primarily driven by a decline in bitcoin prices, which reduced owned mining revenues, combined with higher purchased energy costs resulting from the continued expansion of our owned mining operations, partially offset by improvements in fleet efficiency year over year. This excludes energy costs from third-party hosted sites.
Previous wording
Our ability to access power at $0.04 per kilowatt hour (“kWh”) across our owned and operated sites provides the economic foundation for each of our workloads across AI, HPC, critical IT, and Bitcoin mining. We believe that owning and controlling power at this scale and cost allows us to allocate energy dynamically across workloads based on market conditions and demand, maximizing the economic return on each megawatt under our control.
Current wording
For the six months ended June 30, 2026, our ability to access power at $0.04 per kilowatt hour (“kWh”) across our owned and operated sites provides the economic foundation for each of our workloads across AI, HPC, critical IT, and Bitcoin mining. We believe that owning and controlling power at this scale and cost allows us to allocate energy dynamically across workloads based on market conditions and demand, seeking to maximize the economic return on each megawatt under our control.
Previous wording
In addition to energy costs incurred at our owned mining sites, third-party hosting and other energy costs remain a significant part of our overall cost structure and are subject to similar volatility and market dynamics. For the three months ended March 31, 2026 and 2025, these costs totaled $70.0 million and $68.2 million, respectively, reflecting both the expansion of our hosted mining operations and higher variable energy pricing at third-party facilities. Our hosting arrangements typically include energy charges, as well as maintenance and management fees for colocation and operational support. Such hosting arrangements have contractual commitments extending over the next two years and minimum future payments of approximately $374.5 million.
Current wording
In addition to energy costs incurred at our owned mining sites, third-party hosting and other energy costs remain a significant part of our overall cost structure and are subject to similar volatility and market dynamics. For the three months ended June 30, 2026 and 2025, these costs totaled $69.2 million and $69.0 million, respectively, and for the six months ended June 30, 2026 and 2025, these costs totaled $139.2 million and $137.2 million, respectively, reflecting both the expansion of our hosted mining operations and higher variable energy pricing at third-party facilities. Our hosting arrangements typically include energy charges, as well as maintenance and management fees for colocation and operational support. Such hosting arrangements, excluding the commodity swap contract acquired in a previous acquisition, have contractual commitments extending over the next two years and minimum future payments of approximately $308.5 million. Our most significant third-party hosting arrangements are scheduled to expire, beginning in the third quarter of 2027 and expected to fully conclude during the first quarter of 2028. These expirations are expected to eliminate third-party hosting costs and improve our cost per kWh over time as the arrangements expire.
Previous wording
As one of the largest corporate holders of bitcoin globally, our strategy is focused on enhancing shareholder value through disciplined, risk-managed deployment of bitcoin beyond passive holdings. We view bitcoin as a productive asset, a source of liquidity, returns, and long-term capital appreciation and may activate a portion of our holdings through lending, structured trading arrangements, and collateralized financing. We seek to generate incremental income to help fund operations, expand infrastructure, and reduce our cost of capital. Our strategy balances upside participation in bitcoin appreciation with near-term cash flow generation, while maintaining substantial liquidity to respond to market opportunities. These activities are intended to complement our core mining operations by providing additional sources of liquidity and income.
Current wording
As one of the largest corporate holders of bitcoin globally, our strategy is focused on enhancing shareholder value through disciplined, risk-managed deployment of bitcoin beyond passive holdings. We view bitcoin as a productive asset and may activate a portion of our holdings through lending, structured trading arrangements, and collateralized financing to generate incremental income, fund operations, and reduce our cost of capital.
Previous wording
As of March 31, 2026, we held a total of 35,303 bitcoin, including 9,995 bitcoin that were loaned or pledged as collateral. As such, approximately 28% of our total holdings were activated through our digital asset management strategy. During the three months ended March 31, 2026, the fair value of our bitcoin holdings decreased approximately $1.0 billion, primarily due to the significant decline in the market price of bitcoin during the quarter.
Current wording
As of June 30, 2026, we held 35,577 bitcoin, including 9,270 bitcoin that were loaned or pledged as collateral, representing approximately 26% of our total holdings. During the three and six months ended June 30, 2026, the fair value of our bitcoin holdings decreased approximately $343.0 million and $1.4 billion, respectively, due to the decline in bitcoin’s market price. Partially offsetting this decline, we generated interest income from our bitcoin lending activities and recognized net investment income (loss) from our bitcoin trading activities.
Previous wording
Historically, we held the bitcoin we produced as a long-term investment and in 2025, we changed our strategy to permit sales of bitcoin generated from operations. In 2026, we expanded this strategy to allow for sales of bitcoin held on our balance sheet. Accordingly, we may hold bitcoin for long-term investment purposes and may also buy or sell bitcoin from time to time, subject to market conditions and our capital allocation priorities.
Current wording
In 2025, we changed our strategy to permit sales of bitcoin generated from operations. In 2026, we expanded this strategy to allow for sales of bitcoin held on our balance sheet. Accordingly, we may hold bitcoin for long-term investment purposes and may also buy or sell bitcoin from time to time, subject to market conditions and our capital allocation priorities.
Previous wording
We retain the majority of our bitcoin holdings as a treasury asset, under our bitcoin investment approach, to preserve long-term exposure to fair value appreciation while also serving as an available source of liquidity. Consistent with this approach, we may monetize a portion of our bitcoin holdings from time to time, including through sales of bitcoin held on our balance sheet. We hold our bitcoin across multiple custodial wallets to mitigate counterparty risk and avoid concentration with any single custodian.
Current wording
We retain the majority of our bitcoin holdings as a treasury asset for long-term appreciation and liquidity. Consistent with this approach, we may monetize a portion of our bitcoin holdings from time to time, including through sales of bitcoin held on our balance sheet. We hold our bitcoin across multiple custodial wallets to mitigate counterparty and concentration risk.
Previous wording
We have lending arrangements with various counterparties to generate additional returns on our bitcoin holdings. As of March 31, 2026, we had loaned out a total of 5,742 bitcoin that generated $6.4 million of interest income for the three months ended March 31, 2026. We assess the creditworthiness of counterparties prior to lending and reassess periodically. Loaned bitcoin is generally subject to recall upon short notice.
Current wording
We have entered into lending arrangements with various counterparties to generate additional returns on our bitcoin holdings. As of June 30, 2026, we had loaned out a total of 4,742 bitcoin, which generated $4.3 million and $10.7 million of interest income for the three and six months ended June 30, 2026, respectively. Counterparty creditworthiness was assessed prior to lending and is reassessed periodically. Loaned bitcoin is generally subject to recall upon short notice.
Previous wording
As of March 31, 2026, 4,253 bitcoin were pledged as collateral in connection with $150.0 million of outstanding borrowings under our Line of Credit bearing an interest rate of 7.0% per annum.
Current wording
As of June 30, 2026, 4,528 bitcoin were pledged as collateral. Of the bitcoin pledged as collateral, 4,253 bitcoin were secured in connection with $150.0 million of outstanding borrowings under our 2026 Line of Credit, which was entered into in January 2026 and bears an interest rate of 7.0% per annum. The remaining 275 bitcoin were pledged for other bitcoin arrangements.
Previous wording
(1) Change in fair value of bitcoin for the three months ended March 31, 2026 was a loss of $1.0 billion and includes the “Change in fair value of digital assets” loss of $714.7 million, excluding a loss of $0.6 million related to other digital assets, resulting in a $714.1 million loss attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” loss of $303.9 million. For the three months ended March 31, 2025, change in fair value of bitcoin totaled $507.7 million and includes the “Change in fair value of digital assets” loss of $394.2 million, excluding a loss of $2.5 million related to other digital assets, resulting in a $391.7 million loss attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” loss of $116.1 million.
Current wording
(1) Change in fair value of bitcoin for the three months ended June 30, 2026 was a loss of $342.7 million and includes the “Change in fair value of digital assets” loss of $249.6 million, excluding a loss of $0.3 million related to other digital assets, resulting in $249.3 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” loss of $93.5 million. Change in fair value of bitcoin for the three months ended June 30, 2025 was a gain of $1.2 billion and includes the “Change in fair value of digital assets” of $846.0 million, excluding $1.1 million related to other digital assets, resulting in $844.9 million attributable to bitcoin, plus the “Change in fair value of digital assets – receivable, net” of $346.5 million.
Previous wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $4.2 million and $5.7 million of interest earned on cash and cash equivalents for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $6.0 million and $2.8 million of interest earned on cash and cash equivalents for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
During the three months ended March 31, 2026, we acquired a majority interest in Exaion, a European company that develops and operates data centers and provides secure cloud and AI inference infrastructure, serving enterprise and regulated-industry customers across three primary product lines: (i) virtual desktops; (ii) data security solutions; and (iii) regulated AI inference solutions. The acquisition expands our capabilities in digital infrastructure, enhances our ability to deliver secure and scalable compute and inference solutions to customers who require data sovereignty and control, and establishes our presence in international markets where demand for private, domestically controlled AI compute is growing. For the three months ended March 31, 2026, the impact of this acquisition on our consolidated results was not material.
Current wording
In the first quarter of 2026, we acquired a majority interest in Exaion, a European company that develops and operates data centers and provides secure, private cloud and AI inference infrastructure, serving enterprise and regulated-industry customers across three primary product lines: (i) virtual desktops; (ii) data security solutions; and (iii) regulated AI inference solutions. The acquisition expands our capabilities in digital infrastructure, enhances our ability to deliver secure and scalable compute and inference solutions to customers who require data sovereignty and control, and establishes our presence in international markets where demand for private, domestically controlled AI compute is growing. For the six months ended June 30, 2026, the impact of this acquisition on our consolidated results was not material.
Previous wording
Additionally, as part of this expansion, we entered into a Strategic Agreement with Starwood to develop, finance and operate digital infrastructure on select power-rich sites within our existing portfolio. Under the Strategic Agreement, we will contribute certain sites to and retain up to a 50% ownership interest in a newly formed joint venture, while Starwood will lead engineering, procurement and construction activities, secure hyperscale tenancy and operate the assets. During the three months ended March 31, 2026, we advanced from announcement to execution under the Strategic Agreement. Site selection negotiations across our portfolio are ongoing, permitting and retrofit work are advancing, and we have commenced discussions with prospective hyperscale tenants. We expect to account for our interest in the joint venture under the equity method of accounting, and accordingly, our share of the joint venture's results of operations will be reflected as a single line item in our Condensed Consolidated Statements of Operations.
Current wording
Additionally, as part of this expansion, we entered into a strategic agreement (the “Strategic Agreement”) with Starwood Digital Ventures LLC (“Starwood”) to develop, finance and operate digital infrastructure on select power-rich sites within our existing portfolio. Under the Strategic Agreement, we will contribute certain sites to and retain up to a 50% ownership interest in newly formed joint ventures, while Starwood will lead engineering, procurement and construction activities, secure hyperscale tenancy and operate the assets. Since execution of the Strategic Agreement, we have advanced site selection negotiations across our portfolio, progressed permitting and retrofit work, and commenced discussions with prospective hyperscale tenants. We expect to account for our interest in these joint ventures under the equity method of accounting, and accordingly, our share of each joint venture's results of operations will be reflected as a single line item in our Condensed Consolidated Statements of Operations.
Previous wording
In April 2026, we entered into a definitive agreement to acquire Long Ridge, a vertically integrated gas and power business located in Hannibal, Ohio, built around a 505 MW combined cycle gas turbine power plant operating at approximately 91% capacity factor, co-located with our existing Bitcoin mining site. The facility is interconnected with the PJM transmission network and anchored by vertically integrated natural gas supply through associated exploration and production operations, delivering an expected all-in operating cost of approximately $15 per megawatt-hour. The combination of owned dispatchable generation, vertically integrated fuel, PJM interconnection, and co-located operational infrastructure positions Long Ridge as a premier HPC campus capable of supporting sustained, power-intensive AI workloads at scale. We have received formal indications of interest from investment-grade hyperscale tenants. The acquisition is subject to customary closing conditions and regulatory approvals.
Current wording
During the quarter, we entered into a definitive agreement to acquire Long Ridge, a vertically integrated gas and power business located in Hannibal, Ohio, built around a 485 MW combined cycle gas turbine power plant operating at approximately 91% capacity factor, co-located with our existing Bitcoin mining site. The facility is interconnected with the PJM transmission network and anchored by vertically integrated natural gas supply through associated exploration and production operations, delivering an expected all-in operating cost of approximately $15 per megawatt-hour. The combination of owned dispatchable generation, vertically integrated fuel, PJM interconnection, and co-located operational infrastructure positions Long Ridge as a premier HPC campus capable of supporting sustained, power-intensive AI workloads at scale. We have received formal indications of interest from investment-grade hyperscale tenants. The acquisition is subject to customary closing conditions and regulatory approvals.
Previous wording
Together, Exaion and the Starwood joint venture establish two distinct pathways on the same energy base. The Starwood joint venture is intended to support hyperscale and large-scale compute workloads, while Exaion focuses on private cloud and regulated enterprise compute. The Long Ridge acquisition, if completed, is expected to support the hyperscale pathway with owned, dispatchable generation and a low-cost power structure. These initiatives are supported by a platform organized around the workloads of: (i) AI, including training, inference, and agentic applications, (ii) critical IT load, including traditional enterprise applications, and (iii) Bitcoin mining. Each workload is supported by a common energy infrastructure layer comprising of owned and operated generation, grid-connected capacity, and behind-the-meter supply.
Current wording
Together, Exaion and the Starwood partnership establish two distinct pathways on the same energy base. The Starwood joint ventures are intended to support hyperscale and large-scale compute workloads, while Exaion focuses on secure, private cloud and regulated enterprise compute. The Long Ridge acquisition, if completed, is expected to support the hyperscale pathway with owned, dispatchable generation and a low-cost power structure. These initiatives are supported by a platform organized around the workloads of: (i) AI, including training, inference, and agentic applications, (ii) critical IT load, including traditional enterprise applications, and (iii) Bitcoin mining. Each workload is supported by a common energy infrastructure layer comprised of owned and operated generation, grid-connected capacity, and behind-the-meter supply.
Previous wording
(1) Includes 47 and 60 bitcoin representing our share of the equity method investee, the ADGM Entity, for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(1) Includes 38 and 47 bitcoin representing our share of the equity method investee, the ADGM Entity, for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
The $35.6 million decrease in Bitcoin mining revenue was primarily driven by an 18% decrease in the average price of bitcoin mined, which contributed approximately $33.1 million to the decrease, with the remaining $2.5 million attributable to a decrease in bitcoin production during the three months ended March 31, 2026.
Current wording
The $58.7 million decrease in Bitcoin mining revenue was primarily driven by a 28% decrease in the average price of bitcoin mined, which contributed approximately $65.9 million to the decrease, partially offset by a $7.2 million increase in bitcoin production during the three months ended June 30, 2026.
Previous wording
We recognized a loss on the change in fair value of derivative instrument of $41.0 million for the three months ended March 31, 2026 compared to a gain of $26.8 million in the prior year period. The change primarily relates to the remeasurement of the commodity swap contract acquired in the GC Data Center Acquisition, which meets the definition of a derivative instrument and is remeasured at fair value at the end of each reporting period. Changes in fair value were primarily driven by movements in electricity forward curve prices during the respective periods and the amendment of the commodity swap during the year, lowering the fixed electricity price.
Current wording
We recognized a loss on the change in fair value of derivative instrument of $1.8 million for the three months ended June 30, 2026 compared to a gain of $20.3 million in the prior year period. The change primarily relates to the remeasurement of the commodity swap contract acquired in the GC Data Center Acquisition, which meets the definition of a derivative instrument and is remeasured at fair value at the end of each reporting period. Changes in fair value were primarily driven by movements in electricity forward curve prices during the respective periods and the amendment of the commodity swap during the prior year, lowering the fixed electricity price.
Previous wording
Taxes other than on income were $2.4 million for the three months ended March 31, 2026 compared to $3.1 million in the prior year period. Taxes other than on income consist primarily of property, sales and use taxes.
Current wording
Taxes other than on income were $1.5 million for the three months ended June 30, 2026 compared to $2.4 million in the prior year period. Taxes other than on income consist primarily of property, sales and use taxes.
Previous wording
Research and development expenses were $8.2 million for the three months ended March 31, 2026 compared to $9.3 million in the prior year period. The $1.1 million, or approximately 11% decrease, was primarily due to reduced spending following the exit of certain technology initiatives in the prior year period as part of our previously disclosed restructuring plan, partially offset by continued initiatives and development activities to support our strategic expansion.
Current wording
Research and development expenses were $7.2 million for the three months ended June 30, 2026, compared to $8.5 million in the prior year period. The $1.4 million, or approximately 16%, decrease was primarily due to the absence of costs associated with certain technology initiatives that were exited as part of our previously disclosed restructuring plan in the third quarter of 2025, partially offset by continued investment in ongoing development initiatives supporting our strategic expansion, including activities at Exaion.
Previous wording
We recognized a loss on digital assets - receivable, net of $303.9 million for the three months ended March 31, 2026 compared to a loss of $116.1 million in the prior year period. The $187.8 million decrease was primarily attributable to the fair value associated with our bitcoin loaned and pledged bitcoin as collateral.
Current wording
We recognized a loss on digital assets - receivables, net of $93.5 million for the three months ended June 30, 2026, compared to a gain of $346.5 million in the prior year period. The $440.0 million decrease was primarily attributable to the fair value associated with our bitcoin loaned and pledged as collateral.
Previous wording
During the three months ended March 31, 2026, we recorded our share of net loss for our 20% interest in the ADGM Entity of $2.2 million, compared to a loss of nearly zero in the prior year period. Our share of the ADGM Entity’s operating results included earnings from the production of 47 bitcoin and approximately $3.2 million of depreciation and amortization during the three months ended March 31, 2026, while in the prior year period, our share of the ADGM Entity’s operating results included earnings from production of 60 bitcoin and approximately $3.1 million of depreciation and amortization.
Current wording
During the three months ended June 30, 2026, we recorded our share of net loss for our 20% interest in the ADGM Entity of $2.9 million, compared to a loss of $0.9 million in the prior year period. Our share of the ADGM Entity’s operating results included earnings from the production of 38 bitcoin and approximately $3.3 million of depreciation and amortization during the three months ended June 30, 2026, while in the prior year period, our share of the ADGM Entity’s operating results included earnings from production of 47 bitcoin and approximately $3.2 million of depreciation and amortization.
Previous wording
We generated revenues of $174.6 million for the three months ended March 31, 2026, compared to $213.9 million in the prior year period. The $39.3 million, or approximately 18%, decrease in revenues was primarily driven by a decrease in Bitcoin mining revenue and, to a lesser extent, other digital assets mining revenue, hosting revenue and other revenue, which for the three months ended March 31, 2026, includes revenues from Exaion.
Current wording
We generated revenues of $349.5 million for the six months ended June 30, 2026, compared to $452.4 million in the prior year period. The $102.9 million, or approximately 23%, decrease in revenues was primarily driven by a decrease in Bitcoin mining revenue and, to a lesser extent, other digital assets mining revenue, hosting revenue and other revenue for the six months ended June 30, 2026.
Previous wording
Hosting services revenue decreased $0.1 million to $1.1 million for the three months ended March 31, 2026, compared to $1.2 million in the prior year period, primarily due to the expiration of hosting agreements during the quarter. As of March 31, 2026, we had no remaining customers associated with hosting services.
Current wording
Other digital assets mining revenue decreased 89%, primarily due to lower production resulting from the wind-down of certain other digital asset mining activities. Hosting services revenue decreased $1.2 million to $1.1 million for the six months ended June 30, 2026, compared to $2.3 million in the prior year period, primarily due to the expiration of hosting agreements during the first quarter of 2026. Other revenues decreased $2.2 million, or approximately 29%, primarily due to elimination of the certain management fee revenues, partially offset by revenues generated from Exaion and third-party software arrangements supporting our Bitcoin mining operations.
Previous wording
Purchased energy costs for the three months ended March 31, 2026 were $44.7 million, compared to $43.5 million in the prior year period, an increase of $1.3 million, or approximately 3%. The increase was primarily driven by the expansion of our owned mining sites through acquisitions and the growth in our total hashrate to 72.2 EH/s, partially offset by lower energy consumption at certain existing sites in Texas and Ohio, due to weather-related downtime. Cost per Petahash per day improved approximately 3%, from $28.5 to $27.6, compared to the prior year period. Purchased energy costs per bitcoin for our owned mining sites increased to $40,047, compared to $35,728 in the prior year period, primarily due to higher network difficulty driven by growth in global hashrate that resulted in an 8% decline in bitcoin production at our owned mining sites compared to the prior year period.
Current wording
Purchased energy costs for the six months ended June 30, 2026 were $93.5 million, compared to $85.2 million in the prior year period, an increase of $8.3 million, or approximately 10%. The increase was primarily driven by the expansion of our owned mining sites through acquisitions, the transition of hosted capacity to self-mining operations, and the growth in our total hashrate to 70.3 EH/s. Cost per Petahash per day improved approximately 6%, from $29.4 to $27.7, compared to the prior year period. Purchased energy costs per bitcoin for our owned mining sites increased to $39,328, compared to $34,723 in the prior year period, primarily due to higher network difficulty driven by growth in global hashrate that resulted in a 3% decline in bitcoin production at our owned mining sites compared to the prior year period.
Previous wording
Operating and maintenance costs for the three months ended March 31, 2026 were $30.6 million compared to $19.8 million in the prior year period, an increase of $10.8 million or approximately 55%. The increase in operating and maintenance costs was primarily due to higher site and miner repair and maintenance costs associated with the expansion of our mining fleet, timing of repairs and increased labor costs to support a larger operational footprint.
Current wording
Operating and maintenance costs for the six months ended June 30, 2026 were $57.5 million compared to $42.2 million in the prior year period, an increase of $15.4 million or approximately 37%, in operating and maintenance costs was primarily due to an increase to site and miner repair and maintenance costs associated with the expansion of our mining fleet, timing of repairs and increased labor costs to support our operational footprint.
Previous wording
Third-party hosting and other energy costs for the three months ended March 31, 2026 totaled $70.0 million compared to $68.2 million in the prior year period, an increase of $1.9 million, or approximately 3%. The increase was primarily driven by higher power consumption and utilization at certain third-party hosted sites, partially offset by downtime due to winter storms at other third-party hosted sites, primarily in Texas, during the quarter.
Current wording
Third-party hosting and other energy costs for the six months ended June 30, 2026 totaled $139.2 million compared to $137.2 million in the prior year period, an increase of $2.0 million, or approximately 2%. The increase was primarily due to higher energy consumption, the addition of energized miners and the expansion of our third-party at certain hosted sites, partially offset by downtime due to winter storms at other third-party hosted sites, primarily in Texas, at the beginning of the year. Our most significant third-party hosting arrangements are scheduled to expire, beginning in the third quarter of 2027 and expected to fully conclude during the first quarter of 2028. These expirations are expected to eliminate third-party hosting costs and improve our cost per kWh over time as the arrangements expire.
Previous wording
Stock-based compensation expense decreased $19.8 million compared to the prior year period primarily due to the reversal of stock-based compensation expense associated with forfeitures related to our 2026 Restructuring Plan, partially offset by incremental expense related to equity awards granted under our new long-term incentive plan.
Current wording
Stock-based compensation expense decreased $27.5 million compared to the prior year period primarily due to the reversal of stock-based compensation expense associated with forfeitures related to our 2026 Restructuring Plan and lower expenses associated with our historical equity plans, partially offset by incremental expense related to equity awards granted under our new long-term incentive plan.
Previous wording
Depreciation and amortization for the three months ended March 31, 2026 totaled $191.6 million compared to $157.9 million in the prior year period. The $33.7 million, or approximately 21%, increase was primarily driven by $20.1 million of accelerated depreciation related to the reassessment of expected future use of certain mining rigs, as well as the expansion of our mining fleet and owned infrastructure.
Current wording
Depreciation and amortization for the six months ended June 30, 2026 totaled $366.2 million compared to $319.6 million in the prior year period. The $46.6 million, or approximately 15%, increase was primarily driven by $48.2 million of accelerated depreciation related to the reassessment of expected future use of certain mining rigs, as well as the expansion of our mining fleet and owned infrastructure, partially offset by lower depreciation as mining rigs reached the end of their useful lives.
Previous wording
We recognized a loss on digital assets of $714.7 million for the three months ended March 31, 2026 compared to a loss of $394.2 million in the prior year period. The $320.5 million decrease was primarily attributable to the significant decline in the price of bitcoin during the quarter.
Current wording
We recognized a loss on digital assets of $964.2 million for the six months ended June 30, 2026 compared to a gain of $451.9 million in the prior year period. The $1.4 billion decrease was primarily attributable to the significant decline in the price of bitcoin during the year and the decrease in our bitcoin holdings.
Previous wording
During the first quarter of 2026, management committed to and initiated the 2026 Restructuring Plan in response to our strategic decision to reallocate resources as part of the strategic shift toward AI and critical IT. As part of the 2026 Restructuring Plan, we realigned our business operations and reduced our workforce by approximately 15%, providing combined annualized savings of $12.0 million. Restructuring costs were $45.9 million for the three months ended March 31, 2026, primarily consisting of $41.8 million related to the elimination of certain business activities and $3.9 million of employee-related separation costs. Costs related to employee separation benefits of $2.9 million were accrued as of March 31, 2026, and are expected to be paid out in the following quarter. There were no such expenses in the prior year period.
Current wording
During the first quarter of 2026, management committed to and initiated a restructuring plan (the “2026 Restructuring Plan”) in response to our strategic decision to reallocate resources as part of the strategic shift toward AI and critical IT. As part of the 2026 Restructuring Plan, we realigned our business operations and reduced our workforce by approximately 15%, providing combined annualized savings of $12.0 million. Restructuring costs were $47.6 million for the six months ended June 30, 2026, primarily consisting of $42.0 million related to the elimination of certain business activities and $5.4 million of employee-related separation costs. As of June 30, 2026, an additional restructuring reserve of $1.8 million was established. There were no such expenses in the prior year period.
Previous wording
During the three months ended March 31, 2026, we repurchased approximately $1.0 billion principal amount of the March 2030 Notes and the June 2031 Notes, resulting in a $70.6 million gain from the extinguishment of debt. There was no such activity in the prior year period.
Current wording
During the six months ended June 30, 2026, we repurchased approximately $1.0 billion principal amount of the March 2030 Notes and the June 2031 Notes, resulting in a $70.6 million gain from the extinguishment of debt. There was no such activity in the prior year period.
Previous wording
Interest income decreased by $1.5 million compared to the prior year period, primarily due to the decrease in interest income earned from our cash and cash equivalent balance, partially offset by the interest income earned on loaned bitcoin under our digital asset management strategy. Interest expense increased for the three months ended March 31, 2026 primarily due to the interest incurred on our interest bearing Convertible Notes and the Line of Credit.
Current wording
Interest income decreased by $0.8 million compared to the prior year period, primarily due to the decrease in interest income earned on loaned bitcoin under our digital asset management strategy as we reduced the amount of bitcoin loaned during the current year, partially offset by the interest income earned on our cash and cash equivalent balance. Interest expense decreased for the six months ended June 30, 2026 primarily due to the eliminated interest expense related to our prior credit facilities, partially offset by interest expense associated with our interest bearing Convertible Notes and the 2026 Line of Credit.
Showing the first 40 of 65 pairs. Open the source sections for the rest.
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
(3) Investment income, net is associated with the return from various bitcoin-denominated trades and is reported in “Other” on the Condensed Consolidated Statements of Operations.
Current report — wording carried from elsewhere
(1) Change in fair value of bitcoin for the six months ended June 30, 2026 was a loss of $1.4 billion and includes the “Change in fair value of digital assets” loss of $964.2 million, excluding a loss of $0.9 million related to other digital assets, resulting in a $963.3 million loss attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” loss of $397.4 million. For the six months ended June 30, 2025, change in fair value of bitcoin was a gain of $683.7 million and includes the “Change in fair value of digital assets” of $451.9 million, excluding a loss of $1.4 million related to other digital assets, resulting in $453.2 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $230.5 million.
Current report — wording carried from elsewhere
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $10.1 million and $8.5 million of interest earned on cash and cash equivalents for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
Stock-based compensation expense decreased by $7.7 million compared to the prior year period, primarily due to lower expenses associated with our historical equity plans, partially offset by incremental expense related to equity awards granted under our new long-term incentive plan.
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, we recorded income tax expense of $0.6 million, compared to an income tax expense of $208.5 million in the prior year period. The $0.6 million income tax expense primarily reflects changes in pretax book income and loss during the periods, driven largely by fair value adjustments related to digital assets offset by a valuation allowance.
Current report — wording carried from elsewhere
(2) “Average price of BTC mined” is calculated using Bitcoin mining revenue divided by the quantity of bitcoin produced during the period, excluding our share of the bitcoin produced for the equity method investee, the ADGM Entity.
Current report — wording carried from elsewhere
The $94.3 million decrease in Bitcoin mining revenue was primarily driven by a 23% decrease in the average price of bitcoin mined, which contributed approximately $98.8 million to the decrease, partially offset by a $4.5 million increase in bitcoin production during the six months ended June 30, 2026.
Current report — wording carried from elsewhere
Purchased energy, Operating and maintenance and Third-party hosting and other energy costs
Current report — wording carried from elsewhere
(1) “Cost per Petahash per day” is calculated using Bitcoin mining costs attributable to purchased energy costs, third-party hosting and other energy costs and cash operating and maintenance costs, divided by the daily average operational hashrate online during the period, excluding our share of the hashrate for the equity method investee, the ADGM Entity, and share of hashrate from our noncontrolling interest, by a factor of 1,000.
Current report — wording carried from elsewhere
(2) “Purchased energy costs per BTC” is calculated as the amounts paid to power providers for power consumed divided by the quantity of bitcoin produced during the period related to our owned mining operations.
Current report — wording carried from elsewhere
Change in fair value of digital assets
Current report — wording carried from elsewhere
Change in fair value of derivative instrument
Current report — wording carried from elsewhere
Change in fair value of digital assets - receivable, net
Current report — wording carried from elsewhere
Equity in net earnings of unconsolidated affiliate
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, we recorded our share of net loss for our 20% interest in the ADGM Entity of $5.0 million, compared to a $0.9 million loss in the prior year period. Our share of the ADGM Entity’s operating results included earnings from the production of 85 bitcoin and approximately $6.5 million of depreciation and amortization during the six months ended June 30, 2026, while in the prior year period, our share of the ADGM Entity’s operating results included earnings from production of 106 bitcoin and approximately $6.3 million of depreciation and amortization.
Current report — wording carried from elsewhere
Interest income, Interest expense and Other
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Partially offsetting this decline, we generated interest income from our bitcoin lending activities and recognized net investment income from our bitcoin trading activities for the three months ended March 31, 2026.