MARA Holdings, Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 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.
Sep 30, 2026 · Filed Nov 9, 2026
MARA$6.64+4.6%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001507605-26-000028
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 223 previous paragraphs and 238 current paragraphs.
109 unchanged; 91 reworded; 38 added; 20 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 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 (38)
Current report
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
Credit”). The facilities were initially collateralized by 18,750 bitcoin. Subsequent to quarter end, we repaid in full all $750.0 million of borrowings under the bitcoin-collateralized loans.
Current report
•During the quarter, we initiated a new restructuring plan (“Project Align”) to further streamline our operations and eliminate redundant functions, which included a workforce reduction, contract terminations and the write-off of certain long-lived assets no longer needed to support our strategic objectives.
Current report
•During the quarter, our majority-owned subsidiary, Exaion, entered into an agreement to provide dedicated GPU capacity to customers, marking its entry into the GPU-as-a-service market.
Current report
•Subsequent to quarter end, we received Federal Energy Regulatory Commission (“FERC”) approval for our Long Ridge acquisition, which we expect to close in the coming weeks. Upon closing, Long Ridge is expected to contribute significant Adjusted EBITDA.
Current report
•Subsequent to quarter end, our Board of Directors authorized a discretionary share repurchase program of up to $500.0 million of our common stock.
Current report
As of September 30, 2026, 17,852 bitcoin were pledged as collateral, of which 17,477 bitcoin were secured in connection with the bitcoin-collateralized loans and the remaining 375 bitcoin were pledged for other bitcoin arrangements. In accordance with the collateral terms of the bitcoin-collateralized loans, a portion of the initially pledged bitcoin was returned to us due to the increase in the price of bitcoin.
Current report
Subsequent to quarter end, we sold 13,597 bitcoin for aggregate proceeds of approximately $1.1 billion, of which $750.0 million was used to repay in full the outstanding bitcoin-collateralized loans. Upon repayment, all previously pledged bitcoin was released.
Current report
Digital Infrastructure Platform
Current report
The Site’s interconnection to the Electric Reliability Council of Texas (“ERCOT”) grid is subject to ERCOT’s Batch Zero interconnection study process. On August 3, 2026, the Governor of the State of Texas directed the Public Utility Commission of Texas (“PUCT”) and ERCOT to complete a comprehensive verification and audit of all data center projects advancing through ERCOT’s interconnection process before any such project moves forward, and ERCOT has postponed certain Batch Zero milestones pending completion of that audit. Although the Batch Zero study is currently scheduled to be completed in the first half of 2027, the audit could delay that schedule. The outcome of the audit and the Batch Zero study will determine whether, when and on what terms power is allocated to the Site, and there can be no assurance that the Site will be allocated all or any portion of the 2,000 MW of power capacity contemplated by the letter agreement, or that any allocation will occur on the anticipated timeline.
Current report
General and administrative expenses for the three months ended September 30, 2026 were $75.8 million compared to $85.3 million in the prior year period. The $9.5 million, or approximately 11%, decrease, was primarily driven by lower personnel costs, including the decrease in stock-based compensation, and professional fees, partially offset by general and administrative expenses attributable to Exaion following its acquisition in February 2026.
Current report
We recognized a gain on digital assets of $421.9 million for the three months ended September 30, 2026 compared to a gain of $234.2 million in the prior year period, an increase of approximately $187.6 million primarily reflecting a larger increase in bitcoin prices during the quarter compared to the prior year period.
Current report
Early termination expenses
Current report
Early termination expenses of $5.0 million for the three months ended September 30, 2025 were related to the termination of a management agreement at one of our owned mining facilities, which subsequently transitioned to internal management. There were no such expenses in the current year period.
Current report
During the third quarter of 2026, management committed to and initiated a new restructuring plan, Project Align, to further streamline our operations, including consolidating certain functions with our majority-owned subsidiary, Exaion. Project Align included asset write-offs, contract terminations and workforce reductions, and resulted in restructuring costs of $19.0 million for the three months ended September 30, 2026. The plan is expected to reduce our ongoing operating costs and improve operating efficiencies by eliminating redundant functions. During the third quarter of 2025, management implemented a separate restructuring plan to reallocate technology resources to support data center initiatives and sovereign AI solutions. Restructuring costs incurred for the three months ended September 30, 2025 were $20.9 million, primarily consisting of asset write-off charges, contract termination expenses and facility exit costs.
Current report
Project Align was substantially completed during the quarter, with a remaining reserve of $10.1 million, primarily related to employee separation costs and contract terminations.
Current report
Other income
Current report
Interest income decreased by $8.4 million compared to the prior year period, primarily due to a reduction in bitcoin loaned under our digital asset management strategy and a lower average balance of cash and cash equivalents during the quarter. Interest expense increased by $0.7 million compared to the prior year period, primarily due to the interest expense associated with the bitcoin-collateralized loans entered into in August of 2026, partially offset by lower interest expense on our interest-bearing Convertible Notes.
Current report
Other expense of $1.9 million for the three months ended September 30, 2026 primarily reflected an increase in the allowance for credit losses resulting from additional bitcoin pledged as collateral in connection with the bitcoin-collateralized loans, partially offset by investment income from internal trading activities.
Current report
Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025
Current report
Third-party hosting and other energy costs for the nine months ended September 30, 2026 totaled $210.7 million compared to $212.9 million in the prior year period, a decrease of $2.2 million, or approximately 1%. The decrease was primarily due to lower costs at certain third-party hosted sites due to weather-related downtime throughout the year, partially offset by slightly higher energy consumption costs and the expansion of certain third-party hosted sites. Our most significant third-party hosting arrangements, representing approximately 29% of our total energy capacity, 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 $277.4 million for the nine months ended September 30, 2026, compared to $264.1 million in the prior year period. The $13.3 million, or approximately 5%, increase was primarily attributable to Exaion-related general and administrative expenses, ongoing acquisition and integration costs and a one-time litigation settlement, none of which were present in the prior year period, partially offset by a lower stock-based compensation expense and lower professional fees.
Current report
Taxes other than on income were $5.3 million for the nine months ended September 30, 2026 compared to $7.9 million in the prior year period.
Current report
Early termination expenses
Current report
Early termination expenses of $5.0 million for the nine months ended September 30, 2025 were related to the termination of a management agreement at one of our owned mining facilities, which subsequently transitioned to internal management. There were no such expenses in the current year period.
Current report
During the first quarter of 2026, management committed to and initiated a restructuring plan (“Project Pivot”) to reallocate resources toward AI initiatives and related critical IT. Under Project Pivot, we realigned our business operations and reduced our workforce by approximately 15%, resulting in expected annualized savings of $12.0 million. During the third quarter of 2026, management initiated a separate restructuring plan, Project Align (and, collectively with Project Pivot, the “2026 Restructuring Plans”) to further streamline our operations and consolidate certain functions with our majority-owned subsidiary, Exaion.
Current report
Restructuring costs for the nine months ended September 30, 2026 were $66.6 million, primarily consisting of $54.0 million related to the elimination of certain business activities, $6.9 million of employee-related separation costs and $5.6 million of contract terminations. As of September 30, 2026 the 2026 Restructuring Plans were substantially completed, and the remaining accrued restructuring liabilities were approximately $10.1 million.
Current report
Restructuring costs for the nine months ended September 30, 2025 were $20.9 million, primarily consisting of asset write-off charges, contract termination expenses and facility exit costs under a plan implemented in the third quarter of 2025.
Current report
Other income
Current report
Other income of $4.6 million for the nine months ended September 30, 2026 primarily reflected $6.7 million of investment income from internal bitcoin trading activities, partially offset by a $2.9 million increase in the credit loss reserve associated with bitcoin collateral balances and higher bitcoin prices.
Current report
Income tax benefit (expense)
Current report
Subsequent to quarter end, we repaid all $750.0 million outstanding under our bitcoin-collateralized loans, resulting in the return of 17,477 bitcoin previously pledged as collateral.
Current report
Subsequent to quarter end, our Board of Directors authorized a discretionary share repurchase program under which we may repurchase up to $500.0 million of our common stock.
Current report
In September 2026, we entered into the First Amendment to the Purchase Agreement, which revised the milestone payment structure. Under the Purchase Agreement, as amended, milestone payments are tied to the receipt of certain regulatory approvals related to the interconnection of the Site, the Site being authorized to receive power, and upon execution of a lease relating to the Site, HIF will retain a minority interest in the Project Company.
Current report
During the quarter ended September 30, 2026, we posted a security deposit of $100.0 million to maintain our participation in the interconnection study for the power capacity contemplated for the Site, which was replaced with a $100.0 million letter of credit in October 2026.
Current report
Acquisition and Development Commitments
Current report
Exaion
Current report
The transaction structure includes a potential future equity infusion of €110.0 million ($129.7 million based on the exchange rate at the acquisition date) in exchange for newly issued shares. Accordingly, we will account for the equity infusion prospectively if and when the commitment is fulfilled, through cash on hand. Refer to Note 3– Acquisitions and Strategic Partnerships in the notes to our Condensed Consolidated Financial Statements, for further information.
Removed paragraphs (20)
Previous report
•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 report
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 report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Other income (loss)
Previous 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.
Previous 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.
Previous report
Income tax expense
Previous report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Previous report
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 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.
Previous report
Impairment of assets
Previous 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.
Previous report
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 report
Other income (loss)
Previous report
Other of $6.5 million for the six months ended June 30, 2026 was primarily due to investment income of $3.4 million from internal bitcoin trading activities and a $1.5 million benefit from the reversal of previously established credit loss reserve, driven by lower bitcoin lending activity, reduced collateral balances and a decline in the market price of bitcoin during the quarter.
Previous report
Additionally, on February 26, 2026, we entered into a Strategic Agreement with Starwood granting exclusivity over the development, contribution or sale of certain Bitcoin mining properties in the United States. The agreement contemplates MARA-funded pre-development costs (subject to caps), capital commitments through joint ventures managed by Starwood, and, in certain circumstances, the sale of properties to Starwood.
Reworded paragraphs (91)
Previous 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.
Current wording
MARA is a global energy-backed digital infrastructure enterprise. We acquire, develop and operate powered assets built to convert energy into high-value compute workloads. Bitcoin mining serves as the foundation of our business, providing flexibility and generating revenue at our sites while we develop high-value infrastructure. 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 nearly 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, with the goal of increasing the proportion of revenue derived from these higher-value 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 deliver capacity for training, inference and critical IT workloads, with the goal of increasing the proportion of revenue derived from these higher-value workloads.
Previous wording
Bitcoin mining is our foundation. Bitcoin mining remains the foundation of our platform and the current primary monetization pathway for our energy assets. We intend to maintain a leading position as one of the world’s largest publicly traded Bitcoin mining companies while expanding our revenue base into AI, critical IT, and power markets over time.
Current wording
Bitcoin mining is our foundation. Bitcoin mining remains the foundation of our platform, providing flexibility and generating revenue, and is the current primary monetization pathway for our energy assets. We intend to continue operating Bitcoin mining as a flexible, revenue-generating load across our sites while expanding our revenue base into AI, critical IT, and power markets over time.
Previous wording
As of June 30, 2026, our total energy portfolio consists of approximately 1.9 gigawatts (“GW”) of capacity across 19 data centers in North America, the Middle East, Europe, and Latin America.
Current wording
As of September 30, 2026, our total energy portfolio consists of approximately 1.9 gigawatts (“GW”) of capacity across 19 data centers in North America, the Middle East, Europe, and Latin America. Subject to the closing of the pending Long Ridge acquisition and the full energization of the site in Matagorda County, Texas, we expect our potential portfolio of power capacity to expand to approximately 4.8 GW.
Previous wording
•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 wording
•On July 2, 2026, pursuant to a membership interest purchase agreement (the “Purchase Agreement”), we acquired MAT 1177 LLC (the “Project Company”) from HIF USA LLC (“HIF”), as seller (the “HIF Acquisition”). The Project Company holds rights to a site in Matagorda County, Texas (the “Site”) and rights under a letter agreement with an electric utility company to up to 2,000 megawatts (“MW”) of power capacity. On September 21, 2026, we amended the Purchase Agreement to revise certain milestones and related payments and subsequent to quarter end, replaced the $100.0 million security deposit posted with the electric utility company during the quarter in connection with the interconnection study with a $100.0 million letter of credit issued by Goldman Sachs Bank USA. The aggregate purchase price remains up to $600.0 million if all milestones are achieved. We intend to develop the Site into a large-scale digital infrastructure campus supporting high-performance computing and Bitcoin mining operations.
Previous wording
•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 wording
•On August 4, 2026, we entered into two bitcoin collateralized term loan facilities (collectively, the “bitcoin-collateralized loans”) with Coinbase Credit, Inc. (“Coinbase”) and Two Prime Lending Limited (“Two Prime”) with an aggregate principal amount of $750.0 million, consisting of $600.0 million of incremental borrowings and the refinancing of our existing $150.0 million borrowing with Coinbase (the “2026 Line of
Previous 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.
Current wording
During the nine months ended September 30, 2026, we mined 6,916 bitcoin, an increase of 128 bitcoin, or 2%, from the prior year period. The increase was primarily due to an improvement in fleet efficiency and the slight increase in blocks won compared to the prior year, partially offset by an increase in the global hashrate, resulting in higher network difficulty. 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 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.
Current wording
As of September 30, 2026, we owned approximately 435,000 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 71.2 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.
Previous wording
On January 21, 2026, we acquired an operational data center in Central Nebraska with 35 MW of operational mining capacity and a nameplate capacity of 42 MW. The acquisition increased our total operational capacity in Central Nebraska by approximately 40% to 142 MW, expanding our owned infrastructure footprint and lowering our average cost to mine by adding low-cost, immediately operational capacity adjacent to our existing Nebraska operations.
Current wording
On January 21, 2026, we acquired an operational data center in Central Nebraska, our second site in the region, with 35 MW of operational mining capacity and a nameplate capacity of 42 MW. The acquisition increased our total operational capacity in Central Nebraska by approximately 40% to 142 MW, expanding our owned infrastructure footprint and lowering our average cost to mine by adding low-cost, immediately operational capacity adjacent to our existing Nebraska operations. In the third quarter of 2026, we increased operational capacity at two of our owned sites: the newest Central Nebraska site expanded from 35 MW to its nameplate capacity of 42 MW, and our Central Ohio site doubled from 30 MW to 60 MW.
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 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.
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 nine months ended September 30, 2026, we sold approximately 26,984 bitcoin as part of our strategy to fund operations, support growth opportunities and manage liquidity.
Previous 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.
Current wording
As of September 30, 2026, we held approximately 34,012 bitcoin, including 19,260 bitcoin under our digital asset management strategy, on our Condensed Consolidated Balance Sheets, with a carrying value of approximately $2.8 billion. The fair value of our bitcoin may be materially impacted as the market value of bitcoin fluctuates. Management believes our recent investments, relative position and liquidity, support the execution of our long-term growth strategy.
Previous 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.
Current wording
Energy cost is the most significant cost driver for Bitcoin mining. Excluding energy costs at third-party hosted sites, energy costs represented 54.6% and 34.3% of our owned mining revenues for the three months ended September 30, 2026 and 2025, respectively, and 54.0% for the nine months ended September 30, 2026, from 35.4% in the prior year period. The increases were primarily driven by lower owned mining revenues resulting from a decline in bitcoin prices compared to the prior year period, and higher purchased energy costs as we expanded our owned mining operations. These increases were partially offset by improvements in miner fleet efficiency, which improved 9.0% to 16.9 joules per terahash as of September 30, 2026.
Previous 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.
Current wording
For the nine months ended September 30, 2026, we had access to power at approximately $0.04 per kilowatt hour (“kWh”) across our owned and operated sites. We believe this low-cost power support provides the economic foundation for each of our workloads across AI, HPC, critical IT, and Bitcoin mining. As of September 30, 2026, our total energy capacity was approximately 1.9 GW, and we believe that owning and controlling power at this scale 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 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.
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 September 30, 2026 and 2025, these costs totaled $71.5 million and $75.7 million, respectively, and $210.7 million for the nine months ended September 30, 2026 from $212.9 million in the prior year period, 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 year and a half and minimum future payments of approximately $250.6 million. Our most significant third-party hosting arrangements, representing approximately 29% of our total energy capacity, 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
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
We hold bitcoin as a treasury asset and may, from time to time, lend it, use it in trading arrangements or pledge it as collateral for financing. In 2025, we changed our strategy to permit sales of bitcoin generated from operations and in 2026 we expanded this strategy to allow for sales of bitcoin held on our balance sheet. Accordingly, we may buy or sell bitcoin from time to time, subject to market conditions and our capital allocation priorities.
Previous 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.
Current wording
As of September 30, 2026, we held 34,012 bitcoin, of which 19,260 bitcoin, or approximately 57%, were loaned or pledged as collateral. The fair value of our bitcoin holdings increased approximately $884.3 million for the three months ended September 30, 2026, primarily due to an increase in the bitcoin market price from $58,524 at June 30, 2026 to $83,556 at September 30, 2026. For the nine months ended September 30, 2026, the fair value of our bitcoin holdings decreased by approximately $476.4 million. In both periods, we recognized interest income from our bitcoin lending activities and net investment income (loss) from our bitcoin trading activities.
Previous 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.
Current wording
We retain the majority of our bitcoin holdings as long-term treasury assets and 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 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.
Current wording
We have entered into lending arrangements with various counterparties to generate additional returns on our bitcoin holdings. As of September 30, 2026, we had loaned 1,408 bitcoin to various counterparties, which generated $2.5 million and $13.2 million of interest income for the three and nine months ended September 30, 2026, respectively. We assess counterparty creditworthiness before lending and periodically thereafter. Loaned bitcoin is generally subject to recall upon short notice.
Previous wording
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 wording
In August 2026, we entered into two bitcoin-collateralized loans with Coinbase and Two Prime for an aggregate principal balance of $750.0 million, initially secured by 18,750 bitcoin. The Coinbase facility refinanced and consolidated our existing $150.0 million 2026 Line of Credit with Coinbase and provided $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 plus 3.875% per annum. The $300.0 million Two Prime facility bears interest at a fixed rate of 7.65% per annum. The bitcoin-collateralized loans mature in August 2028.
Previous wording
(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 wording
(1) Change in fair value of bitcoin for the three months ended September 30, 2026 was a gain of $884.3 million and includes the “Change in fair value of digital assets” of $421.9 million, excluding $1.1 million related to other digital assets, resulting in $420.8 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $463.5 million. Change in fair value of bitcoin for the three months ended September 30, 2025 was a gain of $343.3 million and includes the “Change in fair value of digital assets” of $234.2 million, excluding $0.2 million related to other digital assets, resulting in $234.4 million attributable to bitcoin, plus the “Change in fair value of digital assets – receivable, net” of $108.9 million.
Previous 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.
Current wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $6.8 million and $8.1 million of interest earned on cash and cash equivalents for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
(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 wording
(3) Investment income (loss), net is associated with the return from various bitcoin-denominated trades and is reported in “Other” on the Condensed Consolidated Statements of Operations.
Previous 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.
Current wording
(1) Change in fair value of bitcoin for the nine months ended September 30, 2026 was a loss of $476.4 million and includes the “Change in fair value of digital assets” loss of $542.4 million, excluding $0.2 million related to other digital assets, resulting in a $542.5 million loss attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” gain of $66.1 million. For the nine months ended September 30, 2025, change in fair value of bitcoin was a gain of $1.0 billion and includes the “Change in fair value of digital assets” of $686.1 million, excluding $1.6 million related to other digital assets, resulting in $687.7 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $339.3 million.
Previous wording
(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 wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $16.9 million and $16.6 million of interest earned on cash and cash equivalents for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Growing demand for AI, HPC, critical IT, and inference workloads is creating significant opportunities for companies that own and operate digital infrastructure at scale. As one of the largest owners and operators of energized, low-cost power capacity, we are making strategic investments to extend our digital infrastructure platform, serve new categories of compute demand, and drive long-term shareholder value.
Current wording
Growing demand for AI, HPC, critical IT, and inference workloads is creating significant opportunities for companies that own and operate digital infrastructure at scale. With a portfolio of energized, low-cost power capacity that we own and operate, we believe we are well positioned to make strategic investments to extend our digital infrastructure platform, serve new categories of compute demand, and drive long-term shareholder value.
Previous 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.
Current wording
In February 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 through product lines that include: (i) virtual desktops; (ii) data security solutions; (iii) regulated AI inference solutions; and (iv) GPU-as-a-service, providing customers with access to dedicated GPU compute capacity. 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 expands our presence in international markets where demand for private, domestically controlled AI compute is growing. For the nine months ended September 30, 2026, the impact of this acquisition on our consolidated results was not material.
Previous 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.
Current 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 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, and we expect an 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, we believe, positions Long Ridge for development as an HPC campus capable of supporting sustained, power-intensive AI workloads at scale. We have received formal indications of interest from prospective investment-grade hyperscale tenants. On November 4, 2026, FERC approved our acquisition of Long Ridge, finding the transaction consistent with the public interest. FERC authorization satisfies a key regulatory condition to closing, which we expect to occur in the coming weeks, subject to the satisfaction of remaining customary closing conditions.
Previous wording
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 wording
In July 2026, we extended our digital infrastructure strategy through the HIF Acquisition. 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. We intend to develop the Site as a large-scale digital infrastructure campus capable of supporting HPC workloads, as well as flexible compute operations, including Bitcoin mining. Upon execution of a lease with a third-party tenant, HIF will retain a minority ownership interest in the Project Company. In connection with the interconnection study, we posted a $100.0 million security deposit with the electric utility company, which was replaced with a $100.0 million letter of credit in October 2026. Payment of the aggregate purchase price of up to $600.0 million is contingent on the achievement of certain milestones.
Previous 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.
Current wording
We are pursuing two distinct pathways for our digital infrastructure platform. 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. Long Ridge, when the acquisition is completed, and the Matagorda site are expected to support the hyperscale pathway: Long Ridge with owned, dispatchable generation and a low-cost power structure, and Matagorda, subject to the outcome of the ERCOT audit, Batch Zero study and related regulatory approvals, with large-scale capacity. These initiatives are supported by a platform organized around the workloads of: (i) AI and HPC, 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 composed of owned and operated generation, grid-connected capacity, and behind-the-meter supply.
Previous wording
Our sites are designed to shift between workloads based on economics, demand, and grid conditions, maximizing utilization of our energy assets within a unified operating model, with Bitcoin mining remaining the foundation of our platform.
Current wording
We intend to operate our sites so they can shift between workloads based on economics, demand, and grid conditions, which we believe allows us to optimize utilization of our energy assets within a unified operating model, with Bitcoin mining remaining the foundation of our platform.
Previous 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.
Current wording
(1) Includes 30 and 29 bitcoin representing our share of the equity method investee, the ADGM Entity, for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
We generated revenues of $164.2 million for the three months ended September 30, 2026, compared to $252.4 million in the prior year period. The $88.2 million, or approximately 35%, 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 wind-down of hosting revenue.
Previous wording
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 wording
The $83.1 million decrease in Bitcoin mining revenue was primarily driven by a 37% decrease in the average price of bitcoin mined, which reduced revenue by approximately $94.8 million, partially offset by an $11.7 million increase in bitcoin production during the three months ended September 30, 2026.
Previous wording
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 wording
Other digital assets mining revenue decreased 88%, primarily due to lower production resulting from our planned wind-down of digital asset mining activities other than bitcoin. Hosting revenue was eliminated for the three months ended September 30, 2026, following the expiration of the remaining hosting agreement in the first quarter of 2026.
Previous wording
(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 wording
(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. A decrease in Cost per Petahash per day reflects improved cost efficiency.
Previous wording
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 wording
Purchased energy costs for the three months ended September 30, 2026 totaled $48.1 million compared to $43.1 million in the prior year period, an increase of $5.0 million, or approximately 12%. The increase was primarily driven by the growth of our owned mining operations through a site acquisition during the year and increased utilization of capacity at our newest Central Nebraska and our Central Ohio sites, partially offset primarily by weather-related downtime at certain of our Texas sites. As of September 30, 2026, our total energized hashrate increased 18% to 71.2 EH/s, primarily through improvements in miner efficiency. As a result, Cost per Petahash per day improved approximately 2%, from $31.3 to $30.8. Purchased energy costs per bitcoin for our owned mining sites slightly increased to $39,674 compared to $39,235 in the prior year period.
Previous wording
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 wording
Operating and maintenance costs for the three months ended September 30, 2026 were $21.5 million compared to $26.3 million in the prior year period, a decrease of $4.8 million, or approximately 18%, primarily due to realized gains from energy derivative contracts and lower shipping costs, partially offset by higher site and miner repair and maintenance costs during the quarter.
Previous wording
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 wording
Third-party hosting and other energy costs for the three months ended September 30, 2026 totaled $71.5 million compared to $75.7 million in the prior year period, a decrease of $4.2 million, or approximately 6%. These costs primarily consist of colocation services related to third-party hosted sites. The decrease was primarily due to the lower hosting costs, partially offset by higher energy consumption at certain third-party hosted sites. Our most significant third-party hosting arrangements, representing approximately 29% of our total energy capacity, 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 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 wording
Stock-based compensation expense decreased by $9.8 million compared to the prior year period, primarily due to forfeitures of equity awards in connection with Project Align and lower expenses associated with our historical equity plans as the awards vested, 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 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 wording
Depreciation and amortization for the three months ended September 30, 2026 totaled $150.9 million compared to $167.3 million in the prior year period. The $16.5 million, or approximately 10%, decrease was driven by lower depreciation as certain mining rigs reached the end of their useful lives.
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Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Management believes our recent investments, relative position and liquidity, support the execution of our long-term growth strategy.
Previous report — wording carried elsewhere
AI, HPC, Critical IT, and Inference