POWERCOMPUTE, INC.

What they do

The company runs three operations: a Bitcoin treasury that holds Bitcoin, a Bitcoin mining business conducted through wholly owned subsidiary US Digital, and a specialty finance business that funds nonprofit community associations in Florida by purchasing delinquent assessment accounts. Mining is conducted at company-owned sites in Oklahoma and Mississippi totaling 26 megawatts, and in July 2026 the company announced an expansion into HPC/AI infrastructure. As of December 31, 2025, Bitcoin represented 100% of treasury holdings.

Revenue drivers

• Bitcoin mining — Produces Bitcoin at company-owned Oklahoma and Mississippi sites; mined 7.9 Bitcoin net in both July and August 2026, versus 5.8 in August 2025.
• Bitcoin treasury — Holds 323 BTC valued at approximately $25.2 million as of August 31, 2026; 307 BTC are pledged as collateral under the Arch credit facility and 16 BTC are unencumbered.
• Energy sales / curtailment — Sells power back to the grid during curtailment; approximately $132,000 in August 2026 and approximately $223,000 over the past two months.
• Specialty finance — Purchases delinquent nonprofit community association accounts in Florida in exchange for a portion of collections; the company's original business line, alongside the New Neighbor Guaranty program.

Recent performance

Annual revenue fell from $13.0 million in 2023 to $11.0 million in 2024 and $8.8 million in 2025, while net loss widened to $27.0 million in 2025. Operating cash flow was negative $14.0 million in 2025. Recent quarterly revenue was $2.2 million, $2.4 million, $2.1 million and $2.1 million for the quarters ended September 30, 2025 through June 30, 2026. For August 2026, the company reported 7.9 Bitcoin mined net, 323 BTC held worth approximately $25.2 million, and approximately $21.9 million outstanding under the Arch credit facility.

Strategy

The stated Bitcoin treasury strategy is to retain a majority of held Bitcoin and acquire more through mining, funded by operating cash flow and, from time to time, equity or debt issuance; management has set no specific Bitcoin holding target. In July 2026 the company announced expansion into HPC and AI infrastructure to use its 26 MW of power, acquiring one GPU with approximately 101.7 teraflops and beginning to sell computing capacity to Vast.AI under a demand pricing model. It is also refreshing miners, ordering approximately 1,000 units to replace older S19j Pro machines rated at 100 TH/s or below. The company states Bitcoin mining and treasury remain its primary business.

Risks

• Bitcoin price dependence — Operating results depend on Bitcoin prices, which are volatile, and the company does not hedge or use derivatives to reduce that exposure.
• Collateralized debt — 307 of 323 Bitcoin were pledged against the Arch credit facility with approximately $21.9 million outstanding as of August 31, 2026, and falling Bitcoin values could require additional collateral.
• Going concern and losses — The company cited operating losses and indebtedness as raising substantial doubt about its ability to continue as a going concern, with operating cash flow of negative $14.0 million in 2025.
• Untested HPC/AI expansion — The HPC and AI infrastructure business began only in July 2026 with a single GPU and one customer, Vast.AI, under demand-based pricing, and management flags the need to attract customers and negotiate long-term contracts.

Outlook

Management says it is continuing a miner refresh, with approximately 1,000 new machines expected to be energized by September 30, 2026, which it forecasts will raise active hash rate about 7% to 825 PH/s from 771 PH/s as of June 30, 2026. The company frames its ability to sell power during curtailment as a source of value and intends to convert mining sites toward HPC and AI workloads. Bitcoin mining and treasury operations remain the primary business while the HPC/AI expansion develops.