The sharp swing to loss and cash burn are concerning for a $1M market cap company. Monitor Bitcoin price and the success of the HPC/AI pivot. The Arch Lending refinancing reduces interest expense but is short-dated; watch for renewal terms. Next quarter's results will be critical to assess whether the strategic shift gains traction.
Price Chart
Executive Summary
PowerCompute (PWCM) reported Q2 2026 revenue of $2.1M (+9.8% YoY) but swung to a net loss of $4.6M from a $0.1M profit a year ago, driven by a $1.3M fair value loss on Bitcoin and a $1.7M loss on digital assets receivable. Mining margin contracted to 29% from 41%. Post-quarter, the company refinanced $18M of debt at ~2% APR (down from 12%), improving its capital structure but the 30-day revolving facility adds near-term liquidity risk. The strategic pivot to HPC/AI infrastructure is early-stage and not yet material.
Key Financial Metrics
Key Facts
- Total revenue $2,116,584 in Q2 2026, up 9.8% YoY from $1,928,324
- Net loss of $4,565,563 vs net income of $60,500 in Q2 2025
- Basic EPS of -$5.26 vs +$0.49 a year ago
- Mined 27.9 Bitcoin in Q2 2026 (vs 18.4 in Q2 2025) at avg $72,000/BTC
- Mining margin fell to 29.0% from 41.0% YoY
- Core EBITDA loss of $2.8M vs income of $2.6M in Q2 2025
- Cash balance $853,788 as of June 30, 2026, down from $1.4M at Dec 31, 2025
- Post-quarter refinanced $18M debt with Arch Lending at ~2% APR (30-day revolving, secured by 307 BTC)
- Entered HPC/AI infrastructure via Vast.ai agreement (proof-of-concept, early stage)
Financial Impact
Net loss of $4.6M in Q2 2026, operating cash outflow of $7.2M in H1 2026, and $18M debt refinanced at lower interest rate
Risk Factors
- Bitcoin price volatility directly impacts fair value adjustments and mining margin
- Cash burn rate may require additional financing or asset sales
- Short-term 30-day revolving debt facility creates refinancing risk
- HPC/AI pivot is unproven and may not generate material revenue near-term
- High share dilution risk (shares outstanding increased from 564,940 to 934,662 in six months)
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-350325 |
| Document: lmfa-20260814.htm | 0001193125-26-350325 |
| Document: 0001193125-26-350325-index-headers.html | 0001193125-26-350325 |
| Document: 0001193125-26-350325-index.html | 0001193125-26-350325 |
| Document: 0001193125-26-350325.txt | 0001193125-26-350325 |
| 8-K Data (Synthetic) | 0001193125-26-350325 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 21d ago | 8-K | $1.06 | awaiting T+20 | — | $0.5860 (−44.72%) |
Oct 6, 2026 21d ago | Press Release | $1.06 | awaiting T+20 | — | $0.5860 (−44.72%) |
Sep 30, 2026 27d ago | 8-K | $1.13 | awaiting T+20 | — | $0.5860 (−48.14%) |
Sep 23, 2026 4w ago | 8-K | $1.10 $0.6364 | ▼ −42.15% | ▼ −42.83% | $0.5860 (−46.73%) |
Sep 9, 2026 6w ago | 8-K | $1.19 $1.01 | ▼ −15.13% | ▼ −17.07% | $0.5860 (−50.76%) |
Aug 20, 2026 9w ago | 8-K | $1.34 $0.9800 | ▼ −26.87% | ▼ −26.87% | $0.5860 (−56.27%) |
Aug 14, 2026 10w ago | Press Release | $1.26 $1.02 | ▲ +19.05% | ▲ +17.06% | $0.5860 (+53.49%) |
Aug 14, 2026 10w ago | 8-K | $1.26 $1.02 | ▲ +19.05% | ▲ +17.06% | $0.5860 (+53.49%) |
Aug 7, 2026 11w ago | Press Release | $1.48 $1.18 | ▼ −20.27% | ▼ −19.87% | $0.5860 (−60.41%) |
Aug 5, 2026 11w ago | 8-K | $1.55 $1.11 | ▼ −28.39% | ▼ −27.79% | $0.5860 (−62.19%) |
US Market Status
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