A bitcoin mining company that runs dozens of data centers across the southern and western United States, contributing computing power to a mining pool in exchange for bitcoin rewards and now expanding into AI and high-performance computing hosting. It began in 2014 as an energy-software and microgrid company — the name blends "clean" for its clean-energy roots with "spark" for power — before pivoting to bitcoin mining. Its corporate shell dates back to 1987, when it was incorporated in Nevada as SmartData Corporation.
Bitcoin mining revenue fell 31% to $138M and the total cost to mine a bitcoin exceeded the revenue it brought in.
Mining a bitcoin cost more than it earned this quarter. fell 31% to $138.0 million and a $116.3 million non-cash bitcoin fair-value loss drove a $239.8 million net loss, as the average bitcoin price dropped to $71,881. The company is now pivoting capital and power toward a newly signed data-center lease, but it must raise additional funds to build it out.
Key takeaways
The total direct cost to mine one bitcoin reached $96,277, exceeding the average per bitcoin of $71,692, as direct energy cost per coin at owned facilities was $44,406 and added further pressure.
A $116.3 million non-cash loss on the fair value of bitcoin, compared to a $268.7 million gain a year ago, was the primary driver of the swing to a $239.8 million net loss from $257.4 million in .
Bitcoin mining fell 31% to $138.0 million, driven by a lower average bitcoin price of $71,881 and a 5% decline in bitcoin mined to 1,920 coins.
Section summaries
Management's Discussion and Analysis
Bitcoin mining revenue fell 31% YoY to $138M in Q3 FY2026 on lower bitcoin prices and mined volume, driving a $240M net loss.
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Bitcoin mining decreased 31% to $138.0M in Q3 FY2026, driven by a lower average bitcoin price ($71,881 vs. $98,736) and fewer bitcoin mined (1,920 vs. 2,012).
Direct energy cost per bitcoin mined at owned facilities was $44,406, and including , the total direct cost to mine one bitcoin was $96,277, exceeding the average per bitcoin of $71,692.
Payroll expenses rose 70% to $27.8 million, largely from a $10.8 million increase in non-cash tied to the 2025 Long-Term Incentive Plan.
The company entered a 20-year for 175 MW at its Sandersville campus with a global technology tenant, and plans to fully decommission bitcoin mining at the site by fiscal 2028.
A 10% change in the bitcoin price would shift the realizable cash value of holdings and by roughly $92 million, and a 10% adverse move in derivative liabilities would increase the net loss by roughly $304 million.
What changed
The direct energy cost per bitcoin mined at owned facilities fell to $44,406 from $48,946 in the first half of FY2026, but the total cost to mine one bitcoin of $96,277 still exceeded the average per coin, a deterioration from the prior quarter when the gap was narrower.
The AI and HPC data-center , which had generated no as of last quarter, now has a signed 20-year lease with a global technology tenant at the Sandersville campus, marking the first concrete step toward monetization.
The CBP tariff matter flagged in prior quarters, with potential liability of up to $185 million, was not resolved and remains an unrecorded .
The company's cash and equivalents fell 22.2% sequentially to $202.6 million, while remained elevated at $1.78 billion following the convertible note issuances flagged in FY2025.
What to watch
Whether the company secures the additional financing required to build out the Sandersville data center, and on what terms, given the stated need to raise substantial capital.
The direct cost to mine one bitcoin relative to the bitcoin price, as the total cost of $96,277 exceeded the average of $71,692 this quarter and global hashrate continues to rise.
The fair value of the roughly 12,205 bitcoin held at quarter-end, where a 10% price move would change the realizable cash value by approximately $92 million and directly determine the non-cash gain or loss recorded next quarter.
Progress on decommissioning bitcoin mining at the Sandersville campus and whether the AI/HPC lease begins generating on schedule without triggering rent abatements or termination clauses.
A $116.3M loss on fair value of bitcoin, net, compared to a $268.7M gain a year ago, was the primary driver of the swing to a $239.8M net loss from $257.4M .
Payroll expenses rose 70% to $27.8M, largely due to a $10.8M increase in non-cash tied to the 2025 LTIP.
The company entered a 20-year for 175 MW at its Sandersville campus with a global technology tenant, with plans to fully decommission bitcoin mining at the site by fiscal 2028.
Liquidity remains supported by $920.8M in current assets, including bitcoin and cash, but the company states it will need to raise additional funds to build out the Sandersville data center and pursue its AI/HPC strategy.
Quantitative and Qualitative Disclosures About Market Risk
Bitcoin price risk dominates, with a 10% move impacting holdings and receivables by ~$92M and derivative values by ~$394M.
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The company holds ~12,205 bitcoin and has ~1,719 bitcoin receivable from third-party collateral, with fair values of ~$815M and ~$101M respectively at $58,500 per bitcoin.
A hypothetical 10% change in bitcoin’s would alter the realizable cash value of bitcoin holdings and related by approximately $92 million.
Bitcoin-linked had a of ~$3,040M and of ~$896M; a 10% adverse move in liabilities would increase the net loss by ~$304M.
A 10% change in the of bitcoin-linked would impact their value by ~$90M with a corresponding offset to net loss.
Declines in bitcoin’s market price negatively affect liquidity by reducing the cash realizable from bitcoin sales.
We are from time to time subject to various claims, lawsuits, and other legal and administrative proceedings arising in the ordinary course of business. See Note 15 - Commitments and Contingencies to our Condensed Consolidated Financial Statements in Part I, Item 1 of this Quart…
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We are from time to time subject to various claims, lawsuits, and other legal and administrative proceedings arising in the ordinary course of business. See Note 15 - Commitments and Contingencies to our Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion regarding the Company’s legal proceedings.
Data center strategy faces regulatory, execution, and financing risks that could divert resources from bitcoin mining and impair results.
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New state-level actions in New York and Texas signal rising regulatory hurdles for large-scale data centers, potentially delaying or blocking projects on our properties.
Our HPC/AI data center strategy is early-stage with only one signed lease; failure to secure additional customers could prevent monetization of current and future sites.
Allocating power and capital to data centers may reduce capacity for bitcoin mining, risking loss of competitiveness and operational strain.
Missing financing, construction, or delivery milestones under the Sandersville Lease could trigger rent abatements or lease termination, eliminating contracted .
We must raise substantial additional capital for the Sandersville project, and inability to do so on acceptable terms could jeopardize the entire development.