PowerCompute Reports Second Quarter 2026 Financial Results

Agreement with Vast.ai Marks the Company's Entry into the HPC and AI infrastructure Market

Revenues Increased 9.8% Year-Over-Year; Mined 27.9 Bitcoin in the Second Quarter of 2026

Subsequent to Quarter End, the Company Strengthened Its Balance Sheet by Refinancing $18 Million of Debt through New Debt Facility with Arch Lending, Significantly Lowering Interest Costs

TAMPA, Fla., Aug. 14, 2026 (GLOBE NEWSWIRE) -- PowerCompute, Inc. (NASDAQ: PWCM) (“PowerCompute” or the “Company”), a Bitcoin treasury and mining company expanding into high-performance computing (“HPC”) and artificial intelligence (“AI”) infrastructure, today reported financial results for the three and six months ended June 30, 2026.

Q2’26 Financial Results

• Total revenue for the quarter ending June 30, 2026 was $2.1 million, in line with Q1 2026 and up 9.8% year-over-year. The year-over-year increase reflects an increase in the number of miners actively mining and decreased difficulty rate offset in part by a decrease in Bitcoin price.
• The Company mined 27.9 Bitcoin during the second quarter at an average Bitcoin value of approximately $72,000, compared to 26.1 Bitcoin in Q1 2026 at an average Bitcoin value of approximately $75,700 and 18.4 Bitcoin in Q2 2025 at an average Bitcoin value of approximately $98,000. The increase in Bitcoin mined was attributable to an increase in the number of miners actively mining.
• Mining margin for the current quarter was 29.0% compared to a margin of 41.0% in Q2 2025. The Company generated approximately $145,000 in curtailment and energy sales for the 2026 second quarter as compared to $223,000 in Q2 2025. The decrease is primarily due to an approximately 27% decline in Bitcoin prices for Q2 2026 vs Q2 2025. Mining margin is calculated as digital mining revenues minus digital mining cost of revenues net of curtailment and energy sales.
• The Company incurred a $1.3 million negative fair market value adjustment on mined digital assets due to Bitcoin price at approximately $58,400 on June 30, 2026, as compared to approximately $107,250 June 30, 2025. The Company also incurred a $1.7 million negative fair market value adjustment on Digital (Bitcoin) accounts receivable in Q2 2026.
• As of August 9, 2026, the Company’s June 30, 2026 318.6 Bitcoin holdings (inclusive of Bitcoin held by Galaxy holdings) would be valued at approximately $20.7 million, based on a Bitcoin price of approximately $65,000 as of August 9, 2026.
• Net loss for the second quarter of 2026 was approximately $4.6 million, and Core EBITDA loss was approximately $2.8 million, compared with Q2 2025 net income of $0.1 million and Core EBITDA income of $2.6 million with the change being driven primarily by the $3 million in losses associated with the decrease in Bitcoin price in Q2 2026 versus the $3.8 million gain in the prior year quarter.
• As of June 30, 2026, cash was approximately $0.9 million, and Bitcoin holdings totaled 318.6 Bitcoin, which includes 174 Bitcoin held by Galaxy Digital as collateral in a Digital assets receivable account. The total of the holdings was valued at approximately $18.6 million, based on a Bitcoin price of approximately $58,400 as of June 30, 2026.
  

Q2’26 and Recent Operational Highlights

• Announced strategic expansion into HPC and AI infrastructure, leveraging the Company’s 26 MW of wholly-owned power infrastructure.
• Rebranded and renamed the Company to PowerCompute, Inc. (Nasdaq: PWCM). Effective on July 22, 2026, the Company began trading under the name and new ticker, to better align the Company identity with its expanded focus on delivering HPC and AI infrastructure alongside Bitcoin mining.
• Entered into an agreement with Vast.ai (“Vast”) to utilize its graphics processing unit (“GPU”) compute marketplace to monetize and launch a proof-of-concept study for the Company’s professional-grade GPUs located at its Oklahoma facility.
• Refinanced and consolidated the Company’s three existing $18 million debt facilities in the third quarter through a new debt facility with Arch Lending (the “Arch Facility”), that utilizes 307 Bitcoin (“BTC”) from the Company’s treasury as collateral. The new Bitcoin industry collateral loan with Arch utilizes a revolving 30-day term that carries an interest rate of approximately 2% APR, compared to 12% on the prior loans, substantially lowering the Company's cost of debt and strengthening its capital structure.

Management Commentary

"During the second quarter we made the decision to expand our strategic direction into HPC and AI infrastructure," said Bruce Rodgers, Chairman, President and Chief Executive Officer of PowerCompute. "Our power-first approach remains our central advantage: we own 26 megawatts of energized, low-cost capacity today, and greenfield power takes years to replicate. Our work now is converting that advantage into contracted compute revenue.

"Our proof-of-concept deployment in Oklahoma is underway and has begun generating initial revenue from our engagements generated through Vast. The deployment is small and early, and we are treating it as a learning exercise rather than a milestone. The refinancing we completed after quarter-end lowered our borrowing cost materially, though the facility is short-dated and we remain focused on strengthening our liquidity position. We have real work ahead, and we intend to do it deliberately."

"Revenue was flat sequentially amid the continued soft Bitcoin price environment and grew 9.8% year-over-year on higher Bitcoin production," said Richard Russell, Chief Financial Officer of PowerCompute. "Core EBITDA loss narrowed to $2.8 million from $8.4 million in Q1 2026, largely because a smaller decline in Bitcoin price reduced the fair market value adjustment on mined Bitcoin by $2.5million and $1.5 million on the Loss on fair value of digital assets receivable. That improvement reflects Bitcoin price movement rather than a change in operating performance; mining margin was 29.0% for the quarter, down from 41.0% a year ago on lower Bitcoin prices. Following quarter-end we refinanced approximately $18 million of debt with Arch Lending at an interest rate of approximately 2% APR, compared with 12% on the prior financing package, materially reducing our interest expense. The Arch facility is a 30-day revolving facility secured by Bitcoin from our treasury, and its rate and availability are subject to renewal.”

Investor Conference Call

PowerCompute will host a conference call today, Friday, August 14, 2026 at 8:30 AM EDT, to discuss these results. A question-and-answer session will follow management's presentation.

Conference Call Details:

• Date: Friday, August 14, 2026
• Time: 8:30 AM EDT
• Participant Call Links:
  • Live Webcast: Link
  • Participant Call Registration: Link
    

About PowerCompute

PowerCompute, Inc. (Nasdaq: PWCM) is a Bitcoin treasury and mining company expanding into high-performance computing and artificial intelligence infrastructure. Founded in 2008 and headquartered in Tampa, Florida, the Company operates 26 megawatts of wholly-owned power infrastructure across facilities in Oklahoma and Mississippi. The Company also operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in the State of Florida. For more information, please visit https://www.power-compute.com.

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the volatility of Bitcoin and other cryptocurrency prices, risks related to the use of Bitcoin as collateral for the Arch Facility, including the requirement to post additional collateral if the value of Bitcoin declines, our ability to satisfy the terms and conditions of the Arch Facility or to extend such loans on satisfactory terms, our ability to successfully enter and operate in the high-performance computing and AI infrastructure business, the availability and cost of GPU and related infrastructure equipment, competition in the HPC and AI compute market, our ability to finance our site acquisitions and cryptocurrency mining operations, the risks of operating in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, and our ability to identify and acquire additional mining sites. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.

Investor and Media Contact

KCSA Strategic Communications
Philip Carlson
[email protected]
212-896-1233

PowerCompute, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
		Three Months ended June 30,										Six Months ended June 30,
			2026						2025				2026				2025
Revenues:
Digital mining revenues				$	2,008,220			$	1,806,364			$	3,986,400			$	4,080,304
Specialty finance revenue			87,771						94,945				195,428				162,334
Rental revenue			20,593						27,015				43,723				57,023
Total revenues			2,116,584						1,928,324				4,225,551				4,299,661
Operating costs and expenses:
Digital mining cost of revenues (exclusive of depreciation and amortization shown below)			1,571,273						1,288,399				3,439,617				2,836,694
Curtailment and energy sales			(145,071			)			(223,269	)			(512,666	)			(372,955	)
Staff costs and payroll			1,113,824						1,087,627				2,431,099				2,138,104
Depreciation and amortization			840,142						2,039,343				1,669,970				4,076,921
Loss (gain) on fair value of Bitcoin, net			1,318,607						(3,761,139	)			5,103,025				(1,951,163	)
Professional fees			450,389						308,829				796,083				673,314
Selling, general and administrative			345,317						375,420				721,745				685,384
Real estate management and disposal			20,008						22,420				33,383				58,734
Collection costs			12,804						8,589				25,184				25,941
Settlement costs with associations			-						-				-				3,693
Loss (gain) on disposal of assets			(2,739			)			99,578				(2,739	)			286,359
Other operating costs			447,123						259,012				808,218				514,960
Total operating costs and expenses			5,971,677						1,504,809				14,512,919				8,975,986
Operating income (loss)			(3,855,093			)			423,515				(10,287,368	)			(4,676,325	)
Unrealized gain (loss) on marketable securities			8,110						(5,110	)			5,730				(13,820	)
Unrealized gain (loss) on investment and equity securities			(1,111			)			(130,890	)			12,913				(156,874	)
Impairment loss on prepaid mining machine deposit			(17,193			)			-				(17,193	)			-
Gain on Galaxy loan derivative			1,669,659						-				1,692,033				-
Loss on fair value of purchased Bitcoin, net			-						-				-				(52,704	)
Loss on fair value of digital assets receivable			(1,700,773			)			-				(4,879,213	)			-
Change in credit loss reserve on digital assets receivable			3,393						-				9,187				-
Interest expense			(687,087			)			(227,546	)			(1,232,258	)			(448,452	)
Interest income			14,532						531				15,064				1,676
Income (loss) before income taxes			(4,565,563			)			60,500				(14,681,105	)			(5,346,499	)
Income tax expense			-						-				-				-
Net income (loss)		$	(4,565,563			)		$	60,500			$	(14,681,105	)		$	(5,346,499	)
Less: loss (gain) attributable to non-controlling interest			1,253						40,054				(2,419	)			48,379
Net income (loss) attributable to PowerCompute, Inc.		$	(4,564,310			)		$	100,554			$	(14,683,524	)		$	(5,298,120	)
Less: deemed dividends (Note 6)			(40,023			)			-				(40,023	)			-
Net income (loss) attributable to common shareholders		$	(4,604,333			)		$	100,554			$	(14,723,547	)		$	(5,298,120	)
Basic income (loss) per common share (Note 1)		$	(5.26			)		$	0.49			$	(16.99	)		$	(25.80	)
Diluted income (loss) per common share (Note 1)		$	(5.26			)		$	0.49			$	(16.99	)		$	(25.80	)
Weighted average number of common shares outstanding
Basic			875,050						205,336				866,689				205,336
Diluted			875,050						205,336				866,689				205,336

PowerCompute, Inc. and Subsidiaries Consolidated Balance Sheets
		June 30,				December 31,
		2026 (unaudited)					2025
Assets
Cash		$	853,788			$	1,424,426
Marketable securities			43,110				37,380
Prepaid expenses and other assets			759,533				1,198,486
Finance receivables			3,272				17,533
Digital assets - current (Note 2)			751,547				2,563,474
Digital assets - collateral (Note 2)			5,500,000				5,500,000
Digital assets receivable, net (Note 2)			10,183,164				12,678,014
Galaxy loan derivative asset (Note 4)			979,600				47,673
Income tax receivable			-				31,187
Current assets			19,074,014				23,498,173
Fixed assets, net (Note 3)			8,620,463				9,917,350
Intangible assets, net (Note 3)			6,196,193				6,327,769
Deposits on mining equipment			14,974				1,597
Investment in Seastar Medical Holding Corporation			37,986				25,073
Digital assets - long-term (Note 2)			-				8,233,035
Digital assets - collateral (Note 2)			2,200,000				2,200,000
Right of use assets (Note 5)			617,099				728,995
Other assets			325,988				384,234
Long-term assets			18,012,703				27,818,053
Total assets		$	37,086,717			$	51,316,226
Liabilities and stockholders’ equity
Accounts payable and accrued expenses			1,515,657				1,745,875
Note payable - short-term (Note 4)			6,588,035				7,006,912
Master digital currency loan (Note 4)			10,809,494				10,920,838
Due to related parties (Note 7)			76,826				48,319
Current portion of lease liability (Note 5)			207,472				194,618
Total current liabilities			19,197,484				19,916,562
Note payable - long-term (Note 4)			1,952,752				1,932,502
Lease liability - net of current portion (Note 5)			411,972				590,368
Long-term liabilities			2,364,724				2,522,870
Total liabilities			21,562,208				22,439,432
Stockholders’ equity (Note 6)
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025			-				-
Common stock, par value $.001; 350,000,000 shares authorized; 934,662 and 564,940 shares issued and outstanding as of June 30, 2026 and December 31, 2025			935				565
Additional paid-in capital			124,528,398				123,199,948
Accumulated deficit			(107,266,452	)			(92,582,928	)
Total PowerCompute stockholders’ equity			17,262,881				30,617,585
Non-controlling interest			(1,738,372	)			(1,740,791	)
Total stockholders’ equity			15,524,509				28,876,794
Total liabilities and stockholders’ equity		$	37,086,717			$	51,316,226

PowerCompute, Inc. and Subsidiaries Consolidated Statements of Cash Flows
		Six Months ended June 30,
			2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(14,681,105	)		$	(5,346,499	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization			1,669,970				4,076,921
Noncash lease expense			111,896				96,373
Amortization of debt issue costs and debt discount			711,540				42,528
Stock option expense			530,448				135,426
Accrued interest expense on finance lease			26,244				30,553
Loss (gain) on fair value of Bitcoin, net			5,103,025				(1,898,459	)
Loss on fair value of digital assets receivable			4,879,213				-
Impairment loss on mining machine deposit			17,193				-
Unrealized loss (gain) on marketable securities			(5,730	)			13,820
Gain on Galaxy loan derivative			(1,692,033	)			-
Change in credit loss reserve on digital assets receivable			(9,187	)			-
Unrealized loss (gain) on investment and equity securities			(12,913	)			156,874
Loss (gain) on disposal of fixed assets			(2,739	)			286,359
Write-off of income tax receivable			31,187				-
Change in operating assets and liabilities:
Prepaid expenses and other assets			480,006				398,424
Advances to related party			28,507				5,449
Accounts payable and accrued expenses			(230,218	)			540,514
Mining of digital assets			(3,986,400	)			(4,080,304	)
Lease liability payments			(191,786	)			(171,474	)
Net cash used in operating activities			(7,222,882	)			(5,713,495	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections (investment) of finance receivables - original product			8,332				(2,434	)
Net collections (investment) in finance receivables - special product			5,929				(2,635	)
Capital expenditures			(252,145	)			(377,212	)
Collection of note receivable			-				200,000
Proceeds from sale of fixed assets			-				953,153
Investment in digital assets - Tether			(5,296	)			(30,315	)
Proceeds from sale of Bitcoin			6,555,285				3,323,773
Proceeds from the sale of Tether			3,173				29,460
Change in deposits for mining equipment			-				(986,690	)
Distribution to members			-				(1,015	)
Net cash provided by investing activities			6,315,278				3,106,085
CASH FLOWS FROM FINANCING ACTIVITIES:
Insurance financing repayments			(461,406	)			(410,877	)
Proceeds from warrant exercise, net of issuance costs			2,909				-
Proceeds from the issuance of common stock, net of issuance costs			795,463				-
Issuance costs			-				(6,285	)
Net cash provided by (used in) financing activities			336,966				(417,162	)
NET DECREASE IN CASH			(570,638	)			(3,024,572	)
CASH - BEGINNING OF PERIOD			1,424,426				3,378,152
CASH - END OF PERIOD		$	853,788				353,580
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Insurance financing		$	-			$	168,324
Recognition of Galaxy loan derivative		$	760,105			$	-
Digital assets transferred to digital assets receivable, net		$	2,375,176			$	-
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for taxes		$	-			$	-
Cash paid for interest		$	568,015			$	337,850

Non-GAAP Financial Measures

Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) and Core Earnings before Interest, Tax, Depreciation and Amortization (“Core EBITDA”) which adjusts for unrealized loss (gain) on investment and equity securities, loss (gain) on disposal of mining equipment, loss on impairment of prepaid mining machine deposits, and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:

		Three Months ended June 30,								Six Months ended June 30,
			2026				2025				2026				2025
Net income (loss)		$	(4,565,563	)		$	60,500			$	(14,683,524	)		$	(5,346,499	)
Income tax expense			-				-				-				-
Interest expense			687,087				227,546				1,232,258				448,452
Depreciation and amortization			840,142				2,039,343				1,669,970				4,076,921
Income (loss) before interest, taxes & depreciation		$	(3,038,334	)		$	2,327,389			$	(11,781,296	)		$	(821,126	)
Unrealized loss (gain) on investment and equity securities			1,111				130,890				(12,913	)			156,874
Impairment loss on prepaid mining machine deposits			17,193				-				17,193				-
Loss (gain) on disposal of mining equipment			(2,739	)			99,578				(2,739	)			286,359
Stock compensation and option expense			199,299				24,621				530,448				135,426
Core income (loss) before interest, taxes & depreciation		$	(2,823,470	)		$	2,582,478			$	(11,249,307	)		$	(242,467	)

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