Key highlights
- Quarterly revenue reached $2.19 million, marking a 9.28% increase compared to the same period in the prior year
- The company mined 27.9 BTC during the second quarter, up from 18.4 BTC in the year-ago period
- Management outlined a long-term annual revenue potential of $20 million to $50 million upon full build-out of its AI and HPC hosting capacity
- The company maintains 26 megawatts of owned power infrastructure across facilities in Oklahoma and Mississippi
- PowerCompute initiated a proof-of-concept GPU pilot in July, listing capacity on the Vast.ai compute marketplace
- Total secured debt was significantly reduced following the quarter through a refinanced $18 million facility at approximately 2% APR
Financial Performance
PowerCompute reported total revenue of $2.19 million for the second quarter of 2026, driven primarily by its digital mining operations. The company saw a substantial increase in operational output, mining 27.9 Bitcoins compared to 18.4 Bitcoins in the prior year's second quarter. Despite the revenue growth, the company reported a net loss of approximately $4.6 million, largely attributed to fair value losses on digital assets and the costs associated with its ongoing corporate transition. The company's mining margin stood at 29% during the quarter, supported by energy sales and curtailment revenue which helped offset direct power costs.
Down 19.6% since our story on 8 Oct: $1.01 when we broke it → $0.81 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.
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| 13 Oct | $0.81 |
Management Outlook
Executive leadership emphasized that the company is currently in a transformational phase, shifting its focus toward AI and high-performance computing (HPC) infrastructure. While management does not provide formal short-term financial guidance, they highlighted an illustrative long-term goal of generating between $20 million and $50 million in annual revenue once its full 26-megawatt capacity is converted for AI hosting. The company is currently testing a single GPU pilot to prove out the economics of its containerized data center model before committing further capital to large-scale hardware acquisitions.
Business Overview
PowerCompute, which recently rebranded from LM Funding America, operates through two primary segments: US Digital Mining and a legacy specialty finance business. The core of its current value proposition lies in its wholly owned, energized power infrastructure, which includes a 15-megawatt site in Oklahoma and an 11-megawatt site in Mississippi. The company currently utilizes approximately 22 megawatts for Bitcoin mining but views this entire footprint as addressable for future AI and HPC workloads. As of June 30, 2026, the company reported no backlog or order book in its mining or finance operations according to its SEC filings.
Sector Dynamics
During the call, management discussed the broader shift in the digital asset mining industry toward diversified compute services. As Bitcoin mining margins face pressure from global difficulty rates and halving events, the company is positioning its low-cost power—averaging approximately $0.036 per kilowatt-hour—as a competitive advantage for the high-demand AI hosting market. This strategy aligns with a growing trend among former miners seeking to repurpose existing electrical interconnects for more stable, high-margin HPC contracts.
What to Watch
- Third quarter 2026 financial results are scheduled for release on November 13, 2026
- The maturity of a remaining $1.25 million secured promissory note is set for December 31, 2026
- Execution of definitive customer contracts for the 4 megawatts of available capacity in Mississippi
- Updates on the revenue contribution from the initial GPU pilot listing on the Vast.ai marketplace
- Progress on the potential fleet refresh program intended to increase mining hashrate efficiency
Strategic Transformation
“This is a transformational time for our company.”
Management commentary
“This is a transformational time for our company.”
| Share price | $1.01 |
|---|---|
| Market cap | $2M |
| Revenue (annual) | $9M |
| 1-month price change | -14.41% |
| Sector | Financial ServicesCapital Markets |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
SEC filing by PowerCompute, Inc. announcing its second quarter 2026 financial results.
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