Secured debt reduced 94% and annual secured interest cut to approximately $138,000, with no Bitcoin pledged; mining margin improved to 50.7% from 29.0% in Q2 2026
Net income of $0.4 million, or $0.20 per share, on fair value gains as Bitcoin rose approximately 43% during the quarter
TAMPA, Fla., Nov. 13, 2026 (GLOBE NEWSWIRE) -- PowerCompute, Inc. (Nasdaq: PWCM) ("PowerCompute" or the "Company"), formerly LM Funding America, Inc., a Bitcoin mining and power-infrastructure company, today reported results for the three and nine months ended September 30, 2026. The Company mined 23.9 Bitcoin in the third quarter of 2026 ("Q3 2026"), up 35.8% compared against the third quarter of 2025 ("Q3 2025"), and mining margin improved to 50.7% compared against 29.0% in the second quarter of 2026 ("Q2 2026"). Because the average value of each Bitcoin mined was 37.5% lower than in Q3 2025, revenue was $1.9 million, compared with $2.2 million in Q3 2025.
On September 24, 2026, the Company repaid and terminated its Bitcoin-backed credit facility, reducing secured debt from approximately $19.4 million at June 30, 2026 to $1.25 million, with no Bitcoin pledged. In November 2026, the Company paid approximately $1.0 million in cash for 600 Bitmain Antminer S21++ miners which is anticipated to be in service by mid-December 2026. The Company anticipates this purchase to increase its active Bitcoin mining hashrate by approximately 80 to 85 PH/s, or about 10%.
Q3'26 Financial Results
-- Revenue: $1.9 million for Q3 2026, compared with $2.1 million in Q2 2026
and $2.2 million for Q3 2025. More miners actively mining raised
production 35.8% to 23.9 Bitcoin, while the average value of each Bitcoin
mined fell to approximately $71,400 from approximately $114,200.
-- Mining margin: 50.7% in Q3 2026, compared with 29.0% in Q2 2026 and 49.0%
in Q3 2025. Energy cost to mine one Bitcoin, net of curtailment and
energy sales, was approximately $35,000, compared with approximately
$58,000 in Q3 2025, and blended net power cost was approximately 2.4
cents per kilowatt-hour in Q3 2026. Curtailment and energy sales
generated approximately $304,000 in Q3 2026, compared with approximately
$152,000 in Q3 2025, primarily from summer heat-related curtailment at
the Oklahoma site. Mining margin is digital mining revenue less digital
mining cost of revenue, net of curtailment and energy sales.
-- Operating costs: Total operating costs and expenses were approximately
$2.8 million in Q3 2026, compared with $5.7 million in Q3 2025, primarily
reflecting a $1.5 million decrease in staff costs and a $1.2 million
decrease in depreciation and amortization. Operating loss narrowed to
approximately $0.9 million from $3.5 million.
-- Arch facility items: Q3 2026 results include a $6.7 million gain on the
fair value of Digital Assets Receivable for Bitcoins held under the
Company's Arch loan, a $4.4 million loss on the related loan derivative
and $1.0 million of interest expense, of which approximately $0.7 million
was non-cash and related to the derivative. With the facility repaid on
September 24, 2026, annual interest expense on the Company's remaining
secured debt is approximately $138,000.
-- Net income attributable to common shareholders: approximately $0.4
million, or $0.20 per basic and diluted share, compared with a net loss
of $4.1 million in Q3 2025. As the Bitcoin price rose from approximately
$58,400 at June 30 to approximately $83,800 at September 30, 2026, the
Company recorded the $6.7 million fair value gain for Digital Assets
Receivable, partially offset by the $4.4 million loan derivative loss.
Core EBITDA was approximately $2.3 million in Q3 2026, compared with Core
EBITDA losses of $1.4 million in Q3 2025 and $2.8 million in Q2 2026.
-- Balance sheet: Total liquidity was approximately $6.0 million at
September 30, 2026, comprising 63.8 Bitcoin valued at approximately $5.3
million (at approximately $83,800 per Bitcoin), cash of approximately
$0.7 million and marketable securities. Total liabilities were
approximately $3.7 million, compared with $21.6 million at June 30, 2026.
At October 31, 2026, the Company held 65.7 Bitcoin, valued at
approximately $5.1 million based on a Bitcoin price of approximately
$77,000, or approximately $2.00 of Bitcoin per share of common stock
outstanding.
Q3'26 and Recent Operational Highlights
-- Debt: Approximately 39.6 Bitcoin, valued at approximately $3.3 million,
were returned to the Company when the Arch facility was repaid. The
Company's only remaining secured debt is a $1.25 million note with Brown
Family Enterprises, LLC, whose maturity was extended on November 2, 2026,
effective October 31, 2026, to December 31, 2027.
-- S21++ purchase: In November 2026, purchased 600 Bitmain Antminer S21++
miners for approximately $1.0 million, paid in full in cash. Delivery is
expected in late November, with deployment by mid-December 2026 at the
Columbus, Mississippi site, where the new miners will replace
approximately 500 S19 and 100 S19j Pro units in existing slots without
additional power capacity. At an expected average 228 TH/s per miner, the
new units are expected to produce approximately 137 PH/s in place of
approximately 52 PH/s, a net increase of approximately 80 to 85 PH/s, or
about 10% of our total active hashrate, which would bring active hashrate
to approximately 880 PH/s from its October 31, 2026 level. At constant
network difficulty and Bitcoin price, about 10% more hashrate would mean
about 10% more Bitcoin mined. This estimate replaces the approximately
964 PH/s projection in the Company's September 30, 2026 release, which
included an approximately 3.5 megawatt expansion in Mississippi that is
not included in the current estimate.
-- Fleet refresh: Installed approximately 900 Bitmain Antminer S19j XP
miners in Oklahoma by September 30, 2026, and moved the displaced S19j
Pro units to Mississippi to replace older S19 units. Each swap replaces a
machine producing approximately 95 TH/s with one averaging approximately
132 TH/s, about 39% more. Active hashrate declined to approximately 718
PH/s at September 30, 2026 from approximately 771 PH/s at June 30, 2026,
primarily from degradation of older miners, then reached approximately
800 PH/s at October 31, 2026, up 11.4%, without adding power capacity.
-- HPC: Operating a professional-grade graphics processing unit ("GPU") at
the Oklahoma site that has Verified status on the Vast.ai compute
marketplace, which allows the Company to evaluate HPC and AI workloads on
power the Company already owns.
-- Columbus power: Secured 11 megawatts at the Columbus, Mississippi site
under the Tennessee Valley Authority's ("TVA") new data center rate
without the capacity commitment charge of approximately $1.5 million per
megawatt, above the first five megawatts, that TVA now imposes on new
data center load, a charge that would total approximately $9 million for
11 megawatts. The Company moved the site to Columbus Light and Water's
Large Data Service Rate (Schedule DCB) effective October 1, 2026, before
the new rate took effect, increased contracted demand from 8.5 to 11
megawatts and made no capital contribution to the utility.
Management Commentary
"We own 26 megawatts of interconnected power, and our job is to earn the best return we can on every one of them," said Bruce M. Rodgers, Chairman, Chief Executive Officer and President of PowerCompute. "This quarter we repaid our Bitcoin-backed debt, and we now use Bitcoin as working capital rather than collateral. This month we paid cash for 600 new miners that go into slots we already have and should add about 10% to our hashrate by mid-December. We keep replacing older machines with ones that produce more hashrate on the same power, and this summer we sold power back to the grid when that paid more than mining with it. Our GPU work in Oklahoma is early, but it is teaching us what it takes to run HPC on power we already own."
"Revenue fell because each Bitcoin we mined was worth less on average, not because we mined less," said Richard Russell, Chief Financial Officer of PowerCompute. "This quarter's net income primarily came from lower operating costs and fair value gains as Bitcoin rose, on Bitcoin held as working capital and Bitcoin held under the settled Arch facility. What continues is the lower cost of debt: interest on our remaining secured debt now runs about $138,000 a year, and that note matures December 31, 2027."
Investor Conference Call
PowerCompute will host a conference call today, Friday, November 13, 2026 at 8:30 AM EST, to discuss these results. A question-and-answer session will follow management's presentation.
Conference Call Details:
-- Date: Friday, November 13, 2026
-- Time: 8:30 AM EST
-- Participant Call Links:
-- Live Webcast: Link
-- Participant Call Registration: Link
About PowerCompute
PowerCompute, Inc. (Nasdaq: PWCM), formerly LM Funding America, Inc., is an owner and operator of electrical infrastructure that converts electricity into Bitcoin and high-performance computing and artificial intelligence capacity. Founded in 2008 and headquartered in Tampa, Florida, the Company operates 26 megawatts of interconnected electrical infrastructure across Bitcoin data center facilities in Oklahoma and Mississippi.
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