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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-41864

Hut 8 Corp.

(Exact name of registrant as specified in its charter)


Delaware	92-2056803
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1101 Brickell Avenue, Suite 1500
Miami, Florida	33131
(Address of principal executive offices)	(Zip Code)

(305) 224-6427

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

HUT

The Nasdaq Stock Market LLC

Toronto Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of May 4, 2026, the registrant had 112,594,112 shares of its common stock outstanding.

Table of Contents

TABLE OF CONTENTS


		Page

Cautionary Statement Regarding Forward-Looking Statements		1

PART I – FINANCIAL INFORMATION		2
Item 1. Financial Statements		2
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		41
Item 3. Quantitative and Qualitative Disclosures About Market Risk		56
Item 4. Controls and Procedures		57

PART II – OTHER INFORMATION		58
Item 1. Legal Proceedings		58
Item 1A. Risk Factors		58
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		58
Item 3. Defaults Upon Senior Securities		58
Item 4. Mine Safety Disclosures		58
Item 5. Other Information		58
Item 6. Exhibits		60

Signatures		61

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Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, as well as assumptions, that, if proven incorrect or do not materialize, could cause our results to differ materially from those expressed or implied by these forward-looking statements. Forward-looking statements generally are identified by the words “intend,” “plan,” “may,” “should,” “will,” “project,” “estimate,” “anticipate,” “believe,” “expect,” “continue,” “potential,” “opportunity,” and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including those described in Part I, Item 1A, “Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”) and in Part II, Item 1A, “Risk Factors” of this Quarterly Report. Except as required by law, we do not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Hut 8 Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

(in USD thousands, except share and per share data)


		March 31,		December 31,
		2026		2025
		(Unaudited)		(Audited)
Assets
Current assets
Cash		$	160,016	$	44,914
Restricted cash			610		2,373
Accounts receivable, net			7,191		31,122
Deposits and prepaid expenses			48,111		189,332
Derivative assets			—		16,223
Digital assets – pledged for miner purchase			—		84,688
Digital assets receivable			646		812
Assets held for sale			—		38,719
Total current assets			216,574		408,183

Non-current assets
Derivative assets			161,699		101,179
Digital assets – held in custody			435,720		661,979
Digital assets – pledged for miner purchase			210,823		242,937
Digital assets – pledged as collateral			477,520		396,624
Property and equipment, net			812,373		643,244
Operating lease right-of-use asset			17,499		18,496
Deposits and prepaid expenses			8,247		8,314
Investment in unconsolidated joint venture			43,588		45,158
Other investments			6,378		6,378
Intangible assets, net			10,164		11,141
Goodwill			209,159		210,087
Total non-current assets			2,393,170		2,345,537
Total assets		$	2,609,744	$	2,753,720

Liabilities and stockholders’ equity
Current liabilities
Accounts payable and accrued expenses		$	43,927	$	44,519
Miner purchase liability, current portion			—		100,910
Deferred revenue			1,970		1,458
Operating lease liability, current portion			2,852		2,891
Loans, notes payable, and other financial liabilities, current portion			199,966		199,926
Income taxes payable			3,712		115
Liabilities held for sale			—		25,764
Total current liabilities			252,427		375,583

Non-current liabilities
Miner purchase liability, less current portion			360,877		332,153
Operating lease liability, less current portion			15,309		16,279
Loans, notes payable, and other financial liabilities, less current portion			204,784		210,235
Deferred tax liabilities			86,094		129,854
Warrant liability			77		146
Total non-current liabilities			667,141		688,667
Total liabilities			919,568		1,064,250

Commitments and contingencies

Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			—		—
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 112,546,250 and 110,091,358 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			1,125		1,101
Additional paid-in capital			1,612,762		1,425,775
(Accumulated deficit) retained earnings			(214,368)		5,481
Accumulated other comprehensive loss			(19,680)		(10,432)
Total Hut 8 Corp. stockholders’ equity			1,379,839		1,421,925
Non-controlling interests			310,337		267,545
Total equity			1,690,176		1,689,470
Total liabilities and equity		$	2,609,744	$	2,753,720

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Hut 8 Corp. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited, in USD thousands, except share and per share data)


		Three Months Ended
		March 31,
		2026			2025
Revenue:
Power		$	3,740		$	4,380
Digital Infrastructure			1,303			1,317
Compute			65,974			16,118
Total revenue			71,017			21,815

Cost of revenue (exclusive of depreciation and amortization shown below):
Cost of revenue – Power			2,107			3,628
Cost of revenue – Digital Infrastructure			1,546			1,559
Cost of revenue – Compute			21,895			13,472
Total cost of revenue			25,548			18,659

Operating expenses:
Depreciation and amortization			38,442			14,899
General and administrative expenses			81,740			21,059
Losses on digital assets			295,657			112,394
Loss on sale of property and equipment			—			2,454
Total operating expenses			415,839			150,806
Operating loss			(370,370)			(147,650)

Other (expense) income:
Foreign exchange (loss) gain			(2,720)			9
Interest expense			(9,243)			(7,469)
Asset contribution costs			—			(22,780)
Gain on derivatives			40,817			20,862
(Loss) gain on other financial liability			(661)			1,139
Gain on warrant liability			69			—
Gain on sale of Far North JV, net of transaction costs			33,601			—
Equity in earnings of unconsolidated joint venture			6,430			1,365
Total other income (expense)			68,293			(6,874)

Net loss before income taxes			(302,077)			(154,524)

Income tax benefit			48,942			20,205

Net loss			(253,135)			(134,319)

Less: Net loss attributable to non-controlling interests			33,286			430
Net loss attributable to Hut 8 Corp.		$	(219,849)		$	(133,889)

Net loss per share of common stock:
Basic attributable to Hut 8 Corp.		$	(1.98)		$	(1.30)
Diluted attributable to Hut 8 Corp.		$	(1.98)		$	(1.30)

Weighted average number of shares of common stock outstanding:
Basic			111,064,728			102,854,747
Diluted			111,064,728			102,854,747

Net loss		$	(253,135)		$	(134,319)
Other comprehensive (loss) income:
Foreign currency translation adjustments			(9,310)			1,187
Total comprehensive loss			(262,445)			(133,132)
Less: Comprehensive loss attributable to non-controlling interests			33,281			431
Comprehensive loss attributable to Hut 8 Corp.		$	(229,164)		$	(132,701)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Hut 8 Corp. and Subsidiaries

Condensed Consolidated Statements of Equity

(Unaudited, in USD thousands, except share and per share data)

Three Months Ended March 31, 2025


				Additional						Accumulated Other
	Common Stock			Paid-in		Retained		Non-controlling		Comprehensive		Total
	Shares	Amount		Capital		Earnings		Interests		(Loss) Income		Equity
Balance, December 31, 2024	99,478,012	$	995	$	789,597	$	231,630	$	3,910	$	(45,553)	$	980,579
Issuance of common stock – at-the-market offering, net of issuance costs	4,205,019		42		111,969		—		—		—		112,011
Issuance of common stock – stock option exercises	327,204		3		124		—		—		—		127
Issuance of common stock – restricted stock unit settlements	140,275		2		(2)		—		—		—		—
Stock-based compensation	—		—		3,793		—		—		—		3,793
Issuance of warrants by subsidiary	—		—		1,449		—		—		—		1,449
Non-controlling interest in American Bitcoin Corp.	—		—		(1,354)		—		24,222		—		22,868
Foreign currency translation adjustments	—		—		—		—		(1)		1,188		1,187
Net loss attributable to Hut 8 Corp.	—		—		—		(133,889)		—		—		(133,889)
Net loss attributable to non-controlling interest	—		—		—		—		(430)		—		(430)
Balance, March 31, 2025	104,150,510	$	1,042	$	905,576	$	97,741	$	27,701	$	(44,365)	$	987,695

Three Months Ended March 31, 2026


							Additional			Retained						Accumulated Other
		Common Stock					Paid-in			Earnings			Non-controlling			Comprehensive			Total
		Shares		Amount			Capital			(Accumulated Deficit)			Interests			(Loss) Income			Equity
Balance, December 31, 2025		110,091,358		$	1,101		$	1,425,775		$	5,481		$	267,545		$	(10,432)		$	1,689,470
Issuance of Class A common stock by American Bitcoin Corp., net of issuance costs		—			—			32,500			—			78,002			—			110,502
Deferred income tax on American Bitcoin Corp. – equity transactions		—			—			(8,539)			—			—			—			(8,539)
Issuance of common stock – at-the-market offering, net of issuance costs		2,101,363			21			120,099			—			—			—			120,120
Issuance of common stock – stock option exercises		124,619			1			47			—			—			—			48
Issuance of common stock – restricted stock unit settlements		228,910			2			(2)			—			—			—			—
Stock-based compensation		—			—			50,980			—			—			—			50,980
Foreign currency translation adjustments		—			—			—			—			5			(9,315)			(9,310)
Exercise of warrants issued by subsidiary		—			—			(283)			—			283			—			—
Sale of Far North JV and non-controlling interest acquisition prior to sale		—			—			(7,815)			—			(2,212)			67			(9,960)
Net loss attributable to Hut 8 Corp.		—			—			—			(219,849)			—			—			(219,849)
Net loss attributable to non-controlling interests		—			—			—			—			(33,286)			—			(33,286)
Balance, March 31, 2026		112,546,250		$	1,125		$	1,612,762		$	(214,368)		$	310,337		$	(19,680)		$	1,690,176

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Hut 8 Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited, in USD thousands)


		Three Months Ended
		March 31,
		2026			2025
Operating activities
Net loss		$	(253,135)		$	(134,319)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			38,442			14,899
Amortization of operating right-of-use assets			679			609
Non-cash lease expense			551			611
Stock-based compensation			50,874			3,793
Equity in earnings of unconsolidated joint venture			(6,430)			(1,365)
Distributions of earnings from unconsolidated joint venture			8,000			—
ASIC compute revenue			(62,117)			(12,338)
Losses on digital assets			295,657			112,394
Deferred tax assets and liabilities			(52,265)			(20,443)
Foreign exchange loss (gain)			2,720			(9)
Amortization of debt discount			171			144
Loss on sale of property and equipment			—			2,454
Gain on derivatives			(40,817)			(20,862)
Loss (gain) on other financial liability			661			(1,139)
Gain on warrant liability			(69)			—
Gain on sale of Far North JV, net of transaction costs			(33,601)			—
Paid-in-kind interest expense			1,759			6,268
Asset contribution costs			—			22,780
Changes in assets and liabilities:
Accounts receivable, net			23,300			2,625
Deposits and prepaid expenses			758			1,243
Income taxes receivable			341			240
Income taxes payable			3,597			—
Accounts payable and accrued expenses			(5,521)			(8,540)
Deferred revenue			512			(1,636)
Operating lease liabilities			(1,289)			(1,258)
Net cash used in operating activities			(27,222)			(33,849)

Investing activities
Proceeds from sale of digital assets			—			3,433
Bitcoin purchased			(61,317)			—
Deposits for future sites			(16,839)			—
Purchases of property and equipment			(36,617)			(63,336)
Proceeds from sale of property and equipment			—			2,563
Net proceeds from sale of Far North JV, net of cash divested			63,601			—
Additions to intangible assets			—			(896)
Net cash used in investing activities			(51,172)			(58,236)

Financing activities
Repayments of loans payable			(8,000)			—
Principal payments on finance lease			(957)			(119)
Settlement of finance lease obligation in connection with sale of Far North JV			(20,756)			—
Cash paid to buyout non-controlling interest of Far North JV			(9,960)			—
Proceeds from the issuance of common stock – stock option exercises			48			127
Proceeds from the issuance of common stock – at-the-market offering, net of issuance costs			120,120			112,011
Proceeds from the issuance of American Bitcoin Corp. Class A common stock – at-the-market offering, net of issuance costs			110,502			—
Proceeds from other financial liability			—			3,500
Net cash provided by financing activities			190,997			115,519

Effect of exchange rate changes on cash, and restricted cash			(591)			(95)
Net increase in cash			112,012			23,339
Cash, beginning of period			48,614			85,635
Cash, and restricted cash, end of period		$	160,626		$	108,974

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Hut 8 Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited, in USD thousands)


		Three Months Ended
		March 31,
		2026			2025
Supplemental cash flow information:
Cash paid for interest		$	7,566		$	1,776
Cash paid for income taxes		$	43		$	—

Non-cash transactions
Reclassification of deposits and prepaid expenses to property and equipment		$	156,853		$	—
Right-of-use assets obtained in exchange for operating lease liabilities		$	—		$	212
Compute revenue in accounts receivable, net		$	646		$	—
Property and equipment acquired under miner purchase liability		$	8,827		$	85,814
Property and equipment acquired under accounts payable and accrued expenses		$	3,331		$	—
Property and equipment acquired through exchange of right-of-use asset – Far North JV		$	16,944		$	—
Bitcoin redemption and put options acquired under miner purchase liability		$	23,227		$	—
Net income (loss) attributable to non-controlling interests		$	(33,286)		$	(430)
Issuance of common stock – restricted stock unit settlements		$	2		$	2
Issuance of warrants by subsidiary as finance lease payments		$	—		$	1,449
Stock-based compensation capitalized in property and equipment, net		$	106		$	—
Subsidiary warrants exercised		$	283		$	—

Reconciliation of cash, and restricted cash to the Consolidated Balance Sheets:
Cash		$	160,016		$	108,382
Restricted cash			610			592
Total cash, and restricted cash		$	160,626		$	108,974

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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Note 1. Organization

Nature of operations and corporate information

Hut 8 Corp. (together with its consolidated subsidiaries, the “Company” or “Hut 8”) is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies such as AI, high-performance computing, and ASIC compute. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. The Company was incorporated in Delaware in January 2023.

Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements

Basis of presentation

The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all the information and footnotes required by GAAP for complete financial statements. As such, the information included in this Quarterly Report should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2025, and related notes thereto, included in the Annual Report.

Interim results are not necessarily indicative of results for a full year.

The U.S. Dollar is the functional and presentation currency of the Company.

Significant accounting policies followed by the Company in the preparation of the accompanying Unaudited Condensed Consolidated Financial Statements are summarized below.

Principles of consolidation

These Unaudited Condensed Consolidated Financial Statements of the Company include the accounts of the Company and its controlled subsidiaries. Consolidated subsidiaries’ results are included from the date the subsidiary was formed or acquired. Intercompany balances and transactions have been eliminated in consolidation.

Unconsolidated investments in which the Company does not have a controlling interest but does have significant influence are accounted for as equity method investments, with earnings recorded in other (expense) income. These investments are included in long-term assets and the Company’s proportionate share of income or loss is included in other (expense) income.

Recent accounting pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Unaudited Condensed Consolidated Financial Statements and ensures that there are proper controls in place to ascertain that the Company’s Unaudited Condensed Consolidated Financial Statements properly reflect the change.

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In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-12, Codification Improvements (“ASU 2025-12”). Among other amendments to various Topics within the FASB Accounting Standards Codification, ASU 2025-12 clarifies dilutive earnings per share treatment for certain contracts that may be settled in stock or cash when a company has a loss from continuing operations. This update is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company is currently assessing the impact of adopting this standard. For earnings per share amendments, adoption of ASU 2025-12 requires retrospective application to each prior reporting period presented.

In September 2025, FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) (“ASU 2025-07”). With respect to Topic 815, ASU 2025-07 refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. This update is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company is currently assessing the impact of adopting this standard. ASU 2025-07 may be applied using a prospective or modified retrospective transition approach.

In September 2025, FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 modernizes the accounting for internal-use software to current development practices, clarifies when to begin capitalizing costs, and enhances disclosure requirements. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of adopting the standard. ASU 2025-06 may be applied using a prospective transition, modified transition, or retrospective transition approach.

In January 2025, FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2025-01 was issued to clarify the effective date for ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires public business entities to provide additional disclosures in the notes to financial statements, disaggregating specific expense categories within relevant income statement captions. The prescribed categories include purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization related to oil-and-gas producing activities. ASU 2024-03 is effective for the first annual reporting period beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the impact of adopting the standard. ASU 2024-03 may be applied prospectively or retrospectively.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of the Company’s Unaudited Condensed Consolidated Financial Statements include estimates associated with revenue recognition, determining the useful lives and recoverability of long-lived assets, impairment analysis of finite-lived intangibles, goodwill and digital assets, stock-based compensation, and current and deferred income tax assets (including the associated valuation allowance) and liabilities.

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Accounts receivable

Accounts receivable consists of amounts due from the Company’s Power, Digital Infrastructure, and Compute customers. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss (“CECL”) impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company considers many factors, including the age of the balance, collection history, and current economic trends. Bad debts are written off after all collection efforts have ceased.

Allowances for credit losses are recorded as a direct reduction from an asset’s amortized cost basis. Credit losses are recorded in General and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.

Based on the Company’s current and historical collection experience, management recorded allowances for doubtful accounts of $0.2 million and $0.2 million as of March 31, 2026 and December 31, 2025, respectively.

Fair value measurement

The Company’s financial assets and liabilities are accounted for in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

Level 1— Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2— Observable, market-based inputs, other than quoted prices included in Level 1, for the assets or liabilities either directly or indirectly.

Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or a liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

Assets and liabilities measured at fair value on a recurring basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of March 31, 2026 and December 31, 2025:


		Fair value measured at March 31, 2026
		Total carrying						Significant other			Significant
		value at			Quoted prices in			observable			unobservable
		March 31,			active markets			inputs			inputs
(in USD thousands)		2026			(Level 1)			(Level 2)			(Level 3)
Digital assets		$	1,124,063		$	1,124,063		$	—		$	—
Bitcoin redemption and put options			161,699			—			161,699			—
Other financial liability			(3,205)			—			—			(3,205)
Warrant liability			(77)			—			—			(77)

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		Fair value measured at December 31, 2025
		Total carrying						Significant other			Significant
		value at			Quoted prices in			observable			unobservable
		December 31,			active markets			inputs			inputs
(in USD thousands)		2025			(Level 1)			(Level 2)			(Level 3)
Digital assets		$	1,386,228		$	1,386,228		$	—		$	—
Bitcoin redemption and put options			117,402			—			117,402			—
Other financial liability			(2,544)			—			—			(2,544)
Warrant liability			146			—			—			146

In determining the fair value of its digital assets, the Company uses quoted prices as determined by the Company’s principal market, which is the Coinbase exchange. As such, the Company’s digital assets were determined to be Level 1 assets.

The Company estimates the fair value of its Bitcoin redemption and put options using the Black model, which includes several inputs and assumptions, including the forward price of the underlying asset (Bitcoin), the underlying asset’s implied volatility, the risk-free interest rate, and the expected term of the redemption option. As of March 31, 2026, these options were held only by American Bitcoin Corp. (“American Bitcoin”).

See Derivatives below for a description of certain of the Company’s derivative instrument accounting policies.

In estimating the fair value of its call options sold on Bitcoin that it owns (the “covered call options”), the Company uses the Black model, which includes several inputs and assumptions, including the forward price of the underlying asset (Bitcoin), the underlying asset’s implied volatility, the risk-free interest rate, and the expected term of the options. The expected term of the options is the contractual term of the options given the options can only be exercised on their expiry date (i.e., European-style options). The Company determined that the covered call options are Level 2 liabilities given all inputs are observable, but the options themselves are not traded in an active market.

The Company estimated the fair value of its other financial liability using the Probability-Weighted Expected Return Method (“PWERM”), which includes significant unobservable inputs, including the instrument’s estimated credit spread, and as a result, the Company determined that the other financial liability is a Level 3 liability. For quantitative disclosure on the inputs used to estimate the fair value of the Company’s other financial liability, see Note 9. Loans, notes payable, and other financial liabilities. See Other financial liability for a description of the Company’s other financial liability accounting policy.

The Company estimated the fair value of its warrant liability using the Black-Scholes pricing model, which includes significant unobservable inputs, including the expected term of the warrants, and as a result, the Company determined that the warrant liability is a Level 3 liability. For quantitative disclosure on the inputs used to estimate the fair value of the Company’s warrant liability, see Note 10. Derivatives. See Warrant liability for a description of the Company’s warrant liability accounting policy.

The Company estimates the fair value of its separated embedded derivative from the convertible note, namely from the Company’s Coatue Note (as defined below), using the partial differential equation model (“PDE Model”), which includes several inputs and assumptions including the Company’s common stock price at the time of valuation, the implied volatility of the Company’s common stock matching the moneyness of the conversion option, the risk-free interest rate curve, and the instrument’s estimated credit spread. In addition, management’s assumption of the probability of occurrence of the separated embedded derivative from the convertible note’s trigger event is a significant unobservable input. For quantitative disclosure on the inputs used to estimate the fair value of the Company’s separated embedded derivative from the convertible note, see Note 10. Derivatives. The Company determined that the separated embedded derivative from the convertible note is a Level 3 liability given significant unobservable inputs are included in its valuation.

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Assets and liabilities measured at fair value on a non-recurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a non-recurring basis. The Company’s non-financial assets, including goodwill, intangible assets, operating lease right-of-use assets, assets held for sale, and property and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized. The Company had nil impairment from its continuing operations related to its non-financial assets and liabilities measured on a non-recurring basis during the three months ended March 31, 2026 and 2025, respectively. See the Impairment of long-lived assets and Goodwill accounting policies below for further discussion.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, accounts payable, and accrued expenses, approximate fair value due to the short-term nature of these instruments. The carrying value of loans and notes payable and other long-term liabilities approximate fair value, except for the Company’s convertible note, as the related interest rates approximate rates currently available to the Company. See Derivatives and Convertible instruments below for a description of the Company’s derivative instrument accounting policy and convertible instrument accounting policy, respectively, and Note 9. Loans, notes payable, and other financial liabilities for disclosure on the Company’s convertible note.

Goodwill

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. Goodwill is not amortized and is reviewed at least annually for possible impairment. A qualitative assessment may be first performed to determine whether it is more likely than not that a reporting unit is impaired. If through the qualitative assessment, it is determined that it is more likely than not that goodwill is not impaired, no further testing is required. If it is determined more likely than not that goodwill is impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of the reporting unit using a combination of an income (discounted cash flow) approach and a market approach at the reporting unit level. The estimation of the fair value of the reporting unit requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimate of the fair value of the reporting unit is based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors, and technological change or competitive activities may signal that an asset has become impaired. For the three months ended March 31, 2026 and 2025, there was nil impairment of goodwill.

Impairment of long-lived assets

The Company reviews long-lived assets for impairment at least annually, or more frequently whenever events or changes in circumstances indicate that the carrying value of such assets (or asset groups) may not be fully recoverable. The asset (or asset group) to be held and used that is subject to impairment review represents the lowest level of identifiable cash flows that is largely independent of other groups of assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered unrecoverable, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Factors the Company considers that could trigger an impairment include, but are not limited to, the following: significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant underperformance relative to expected historical or projected development milestones, significant negative regulatory or economic trends, and significant technological changes that could render the asset (or asset group) obsolete. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as necessary. When recognized, impairment losses related to long-lived assets to be held and used in operations are recorded as cost and expenses in the Company’s Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. For the three months ended March 31, 2026 and 2025, there was nil impairment.

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Derivatives

The Company accounts for the derivative contracts it enters into, including Bitcoin redemption and put options, covered call options, the separated embedded derivative from the convertible note, and warrant liability as follows:

Bitcoin redemption and put options

The Company has entered into agreements to purchase property and equipment that include pledges of Bitcoin, rights to make future pledges of Bitcoin, and rights to redeem the pledged Bitcoin for certain periods after the relevant redemption periods start. These Bitcoin redemption and put options do not qualify as accounting hedges under FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). Accordingly, the Company carries its Bitcoin redemption and put options at fair value and any gains or losses are recognized in profit or loss.

Covered call options

From time to time, the Company has sold covered call options to generate cash flows on a portion of its Bitcoin held. These options do not qualify as accounting hedges under ASC 815. Accordingly, the Company carries its covered call options at fair value and any gains or losses are recognized in profit or loss.

Separated embedded derivative from the convertible note

The Company evaluates and accounts for derivatives embedded in its convertible instruments in accordance with ASC 815. Accordingly, the Company has assessed if embedded derivatives should be separated from its host contract and accounted for as a derivative instrument based on whether all three ASC 815 criteria are met: (1) the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract, (2) the hybrid instrument is not remeasured at fair value under GAAP with changes in fair value reported in earnings as they occur, and (3) a separate instrument with the same terms as the embedded derivative would be a derivative instrument. ASC 815 also provides an exception to this rule when the host instrument is deemed to be a conventional convertible debt instrument as defined in the FASB ASC topic. The Company identified embedded derivatives in the Coatue Note, which is a convertible instrument it issued, including conversion options, other redemption features, and contingently exercisable options. The Company determined that the Contingent Repurchase Right (as defined in Note 9. Loans, notes payable, and other financial liabilities) in such convertible instrument is an embedded derivative that should be separated from its host contract and accounted for as a derivative instrument as per ASC 815. The conversion option is indexed to the Company’s common stock and meets the criteria for classification in stockholders’ equity, and therefore derivative accounting does not apply. The other embedded derivatives do not meet all three previously mentioned ASC 815 criteria, and therefore should not be separated from their host contract. The Company accounts for its separated embedded derivative as a derivative instrument that is carried at fair value and any gains or losses are recognized in profit or loss.

Warrant liability

The Company assumed certain warrants in the ABTC Merger (as defined in Note 10. Derivatives) that meet the definition of a derivative under ASC 815, and due to the terms, the warrants are required to be classified as a liability. The Company carries its warrant liability at fair value and any gains or losses are recognized in profit or loss.

Other financial liability

The Company carries its other financial liability at fair value in accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) and any gains or losses are recognized in profit or loss.

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Net loss per share attributable to common stockholders

Basic net loss per share of common stock attributable to the Company is computed by dividing net loss attributable to the Company adjusted for the impact of subsidiary warrants exercisable for little or no cash consideration (“Penny Warrant(s)”) issued by a consolidated subsidiary by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share of common stock attributable to the Company is computed by giving effect to all potentially dilutive shares of common stock, including stock options, restricted stock units, deferred stock units, performance stock units, and common stock purchase warrants to the extent dilutive under the treasury-stock method, the numerator adjustment from the impact of the warrant liability assumed by a consolidated subsidiary to the extent dilutive, and potential shares of common stock issuable upon conversion of the Company’s convertible note under the if-converted method. Under the if-converted method, net loss attributable to the Company is adjusted by the effect, net of tax, of potentially dilutive shares computed under this method. Contingently issuable shares whose issuance is contingent upon the satisfaction of certain conditions are considered outstanding and included in the computation of diluted net loss per share of common stock attributable to the Company if all necessary conditions have been satisfied by the end of the period or if the end of the period is deemed the end of the contingently issuable shares’ contingency period. In computing potentially dilutive shares of common stock, each class of shares is applied to basic net loss per share of common stock attributable to the Company on a most to least dilutive basis until a particular class no longer produces further dilution, if applicable.

Non-controlling interests

Non-controlling interests represent the portion of net assets in consolidated entities that are not owned by the Company and are reported as a component of equity on Company’s Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2026, the non-controlling interest on the Company’s Unaudited Condensed Consolidated Balance Sheets consists of 44.70% ownership by third parties in American Bitcoin. For more details, refer to American Bitcoin non-controlling interest section in Note 12. Equity. Previously, there was a non-controlling interest in the Company’s formerly consolidated subsidiary, Far North Power Corp. (the “Far North JV”), prior to its sale. For more details, refer to Note 3. Far North JV sale.

Note 3. Far North JV sale

On February 2, 2026, the Company closed on its share purchase agreement (“Far North SPA”) with TransAlta Corporation (“TransAlta”), under which TransAlta acquired 100% of the Far North JV which owned and operated a 310-megawatt portfolio of four natural gas-fired power plants in Ontario. TransAlta paid cash consideration in Canadian Dollars (C$), and the total amount paid was $75.4 million (C$105.1 million). Pursuant to the Far North SPA, immediately prior to the sale of the Far North JV to TransAlta, (1) the non-controlling interest exercised 2,000,000 Penny Warrants of the Far North JV, (2) the Company acquired the non-controlling interest in the Far North JV for $10.0 million (C$13.9 million), (3) the Company received $7.4 million (C$10.4 million) for the repayment of indebtedness owed by the Far North JV to the Company, and (4) $27.9 million (C$38.9 million) was paid to the finance lease lessor to buy out the finance lease at the Far North JV’s Iroquois Falls, Ontario power plant.

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A reconciliation of the proceeds received by the Company, or paid for on behalf of the Company, and the gain on sale of the Far North JV is as follows:


(in USD thousands)		Amount
Cash consideration paid by TransAlta		$	75,394
Indebtedness owed by the Far North JV to the Company			(7,447)
Finance lease buyout ⁽¹⁾			(27,898)
Carrying amount of the Far North JV’s net assets			(4,110)
Net transaction costs			(2,252)
Foreign currency translation adjustments of the Far North JV			(86)
Gain on sale of Far North JV, net of transaction costs		$	33,601

⁽¹⁾	The finance lease buyout comprised $3.2 million in indirect taxes and $24.7 million for the lease buyout, which exceeded the associated lease liability’s carrying amount immediately prior to the sale of $20.8 million by $3.9 million.

The results of operations of the Far North JV were part of the Power Generation business, under the Company’s Power segment. The divestiture did not meet the criteria to be classified as discontinued operations as it did not represent a strategic shift that would have a major effect on the Company’s operations or financial results.

Note 4. Segment information

The following table presents gross revenue, gross cost of revenue and certain reconciling items for the Company’s reportable segments, reconciled to the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. Certain reconciling items, including general and administrative expenses, are presented on a gross basis.


	Three Months Ended
	March 31,
(in USD thousands)	2026		2025
Reportable segment revenue:
Power	$	8,146	$	4,380
Digital Infrastructure		28,565		1,317
Compute		65,974		16,118
Eliminations		(31,668)		—
Total segment and consolidated revenue	$	71,017	$	21,815

Reportable segment cost of revenue (exclusive of depreciation and amortization shown below):
Cost of revenue – Power		3,392		3,628
Cost of revenue – Digital Infrastructure		19,112		1,559
Cost of revenue – Compute		32,634		13,472
Eliminations		(29,590)		—
Total segment and consolidated cost of revenue	$	25,548	$	18,659

Reconciling items:
Depreciation and amortization		(38,442)		(14,899)
General and administrative expenses		(83,818)		(21,059)
Losses on digital assets		(295,657)		(112,394)
Loss on sale of property and equipment		—		(2,454)
Foreign exchange (loss) gain		(2,720)		9
Interest expense		(9,243)		(7,469)
Asset contribution costs		—		(22,780)
Gain on derivatives		40,817		20,862
(Loss) gain on other financial liability		(661)		1,139
Gain on warrant liability		69		—
Gain on sale of Far North JV, net of transaction costs		33,601		—
Equity in earnings of unconsolidated joint venture		6,430		1,365
Income tax benefit		48,942		20,205
General and administrative expenses eliminations		2,078		—
Net loss	$	(253,135)	$	(134,319)

Less: Net loss attributable to non-controlling interests		33,286		430
Net loss attributable to Hut 8 Corp.	$	(219,849)	$	(133,889)

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The following table presents summarized information for revenue by geographic area:


	Three Months Ended
	March 31,
(in USD thousands)	2026		2025
Revenue
United States	$	65,568	$	13,535
Canada		5,449		8,280
Total revenue	$	71,017	$	21,815

The following table presents summarized information for long-lived assets by geographic area:


		March 31,			December 31,
(in USD thousands)		2026			2025
United States		$	794,778		$	588,592
Canada			17,595			54,652
Total Long-Lived Assets		$	812,373		$	643,244

Note 5. Digital assets

Digital assets on the Company’s Unaudited Condensed Consolidated Balance Sheets consist of Bitcoin and Investment Tokens (as defined below) as of March 31, 2026.

Bitcoin

The following table presents the changes in the carrying amount of Bitcoin as of March 31, 2025 and March 31, 2026:


(in USD thousands)		Amount
Balance as of December 31, 2024		$	949,500
Revenue recognized from Bitcoin mined			12,341
Carrying value of Bitcoin sold			(3,433)
Change in fair value of Bitcoin			(112,392)
Foreign currency translation adjustments			1,228
Balance as of March 31, 2025		$	847,244

Number of Bitcoin held as of March 31, 2025			10,264
Number of Bitcoin pledged to Bitmain as of March 31, 2025			968
Cost basis of Bitcoin held as of March 31, 2025		$	453,413
Realized gains on the sale of Bitcoin for the three months ended March 31, 2025		$	828

Balance as of December 31, 2025		$	1,371,903
Revenue recognized from Bitcoin mined			62,117
Bitcoin mining revenue earned in prior period received in current period			812
Bitcoin purchased			61,317
Bitcoin mining revenue not received			(646)
Carrying value of Bitcoin disposed to settle miner purchase liability			(81,163)
Change in fair value of Bitcoin			(291,238)
Foreign currency translation adjustments			(8,945)
Balance as of March 31, 2026		$	1,114,157

Number of Bitcoin held as of March 31, 2026			16,331
Number of Bitcoin pledged to Bitmain as of March 31, 2026			3,090
Cost basis of Bitcoin held as of March 31, 2026		$	1,077,334
Realized gains on the sale or disposition of Bitcoin for the three months ended March 31, 2026		$	2,532

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As of March 31, 2026, the Company’s Bitcoin was either held in segregated custody accounts for the benefit of the Company, held in segregated custody accounts under the Company’s ownership and pledged as collateral under a borrowing arrangement, or held by Bitmain Technologies Delaware Limited (together with its affiliates, “Bitmain”) for the Bitcoin pledged in connection with the 2025 ABTC Bitmain Purchase Agreement (as defined below) and 2026 ABTC Bitmain Purchase Agreement (as defined below) for miner purchases from them. The details of the Bitcoin are as follows:


		Amount						Number of digital assets
(in USD thousands)		March 31, 2026			December 31, 2025			March 31, 2026		December 31, 2025
Current
Bitcoin pledged for miner purchase		$	—		$	84,688		—		968
Total current Bitcoin – pledged for miner purchase			—			84,688		—		968

Non-current
Bitcoin held in custody			425,814			647,654		6,241		7,402
Total non-current Bitcoin – held in custody			425,814			647,654		6,241		7,402

Non-current
Bitcoin pledged for miner purchase			210,823			242,937		3,090		2,776
Total non-current Bitcoin – pledged for miner purchase			210,823			242,937		3,090		2,776

Non-current
Bitcoin pledged as collateral			477,520			396,624		7,000		4,533
Total non-current Bitcoin – pledged as collateral			477,520			396,624		7,000		4,533

Total Bitcoin		$	1,114,157		$	1,371,903		16,331		15,679

In November 2024, the Company entered into a Purchase Agreement with Bitmain to purchase approximately 30,000 Bitmain Antminer S21+ ASIC miners (as amended, the “Bitmain Purchase Agreement”). In December 2024, in connection with the Bitmain Purchase Agreement, the Company completed its Bitcoin pledge by depositing 968 Bitcoin into a segregated wallet with Bitmain, which was originally subject to a three-month redemption right from the shipment date of the purchased ASIC miners, whereby the Company had the option to repurchase, with cash, the pledged Bitcoin at a mutually agreed upon fixed price. If the Company did not exercise this right within the redemption period, Bitmain would retain full ownership of the pledged Bitcoin as consideration for the purchased ASIC miners. During 2025, the Company amended the redemption period’s end date multiple times: first, the redemption period was amended to end during the quarter ended September 30, 2025, second, the redemption period was further amended to end during the quarter ended December 31, 2025, and third, the redemption period was further amended to end in January 2026. In January 2026, the Company elected not to exercise the option to redeem the pledged Bitcoin, and accordingly, the right to redeem expired.

During 2024, the Company entered into an ASIC colocation contract with Bitmain to host miners at the Company’s Vega site. The agreement featured a fixed hosting fee with a partial or full option to purchase the hosted machines in up to three tranches at a fixed price within six months of energization of the relevant tranche. The Company completed energization of the miners during June and July 2025. On March 31, 2025, the Company entered into a Put Option Agreement (the “Put Option Agreement”), with American Bitcoin (as defined below), pursuant to which the Company had the right to put to American Bitcoin any ASIC miners purchased by the Company under this purchase option.

On August 5, 2025, pursuant to a put option agreement with American Bitcoin, the Company assigned its option to purchase up to approximately 17,280 Bitmain Antminer U3S21EXPH ASIC miners (collectively, the “Bitmain Miners”), representing a total of approximately 14.86 exahash per second (“EH/s”), to American Bitcoin. American Bitcoin exercised the option on August 5, 2025 and entered into an On-Rack Sales and Purchase Agreement (the “2025 ABTC Bitmain Purchase Agreement”) with Bitmain to purchase the Bitmain Miners in one or more tranches for a total purchase price of up to approximately $320.0 million, not including any applicable tariffs, duties or similar charges.

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Concurrently with the execution of the 2025 ABTC Bitmain Purchase Agreement, American Bitcoin purchased 16,299 of the Bitmain Miners, representing a total of approximately 14.02 EH/s, for a total purchase price of approximately $314.0 million, paid through the pledge of 2,234 Bitcoin at a mutually agreed upon fixed price. Such purchase price was reduced by the application of a deposit and certain expenses of approximately $46.0 million previously paid to Bitmain. In September 2025, American Bitcoin purchased the remaining 981 Bitmain Miners for a total purchase price of $18.9 million, paid through the pledge of 151 Bitcoin at a mutually agreed upon fixed price, net of certain hosting credits. In October 2025, American Bitcoin pledged an additional 391 Bitcoin at a mutually agreed upon fixed price, and Bitmain refunded the Company’s $46.0 million comprising of the deposit and certain expenses. The Bitcoin pledged under the 2025 ABTC Bitmain Purchase Agreement has a redemption period of approximately twenty-four months from the applicable pledge date.

In February 2026, American Bitcoin entered into a Future Sales and Purchase Agreement (the “2026 ABTC Bitmain Purchase Agreement”) with Bitmain to purchase approximately 11,298 S21 XP ASIC miners for a total purchase price of approximately $49.4 million. The agreement required an initial payment equal to 80% of the total purchase price, which was paid through the pledge of 314 Bitcoin at a mutually agreed upon fixed price, with the remaining 20% due one year following the shipment date of the S21 XP ASIC miners. The remaining 20% is to be paid through cash, Bitcoin pledged at a mutually agreed upon floor price, or a combination of both. The Bitcoin pledged under the 2026 ABTC Bitmain Purchase Agreement has a redemption period of approximately twenty-four months from the applicable pledge date. American Bitcoin may elect to extend the pledge period for an additional twelve months.

As of March 31, 2026, the Company had pledged 3,090 Bitcoin to Bitmain, with a fair value of $210.8 million, which was classified as Digital assets – pledged for miner purchase on the Company’s Unaudited Condensed Consolidated Balance Sheets. A corresponding liability of $360.9 million was recorded as Miner purchase liability, reflecting the Company’s obligation to either redeem the pledged Bitcoin for cash or apply the pledged Bitcoin toward the purchase of ASIC miners at the end of each respective redemption period. All of the Bitcoin pledged to Bitmain as of March 31, 2026, were pledged by American Bitcoin.

In accordance with FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets, the Company assessed the transfer of nonfinancial assets, Bitcoin, under ASC 606. Specifically, the Company noted that the Bitcoin pledged to Bitmain under the 2025 ABTC Bitmain Purchase Agreement and 2026 ABTC Bitmain Purchase Agreement constitute repurchase agreements under ASC 606. As a result, the Bitcoin was not derecognized upon transfer as the Company retains repurchase options.

Due to the redemption rights and the Company’s continued economic exposure to the Bitcoin, the pledged Bitcoin is separately classified as Digital assets – pledged for miner purchase on the Unaudited Condensed Consolidated Balance Sheets, which represents restricted Bitcoin.

The Company recorded Bitcoin redemption and put options, which are derivative assets, with an initial fair value of $23.2 million during the three months ended March 31, 2026. See Note 10. Derivatives for further information on these derivative assets.

Investment Tokens

During 2025, the Company purchased 100 million World Liberty Financial, Inc. tokens (“Investment Tokens”) at $0.25 per token for total cash consideration of $25.0 million pursuant to a Token Purchase Agreement (“TPA”) with World Liberty Financial, Inc. (“WLFI”). The Company’s Investment Tokens are subject to an indefinite lockup, with a minimum of twelve months from purchase date. Future unlocks are subject to the Investment Tokens’ protocol governance procedures and may be subject to WLFI’s discretion.

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There were no Investment Tokens held as of March 31, 2025. The following table presents the changes in the carrying amount of the Investment Tokens as of March 31, 2026:


(in USD thousands)		Amount
Balance as of December 31, 2025		$	14,325
Change in fair value of Investment Tokens			(4,419)
Balance as of March 31, 2026		$	9,906

Number of Investment Tokens held as of March 31, 2026			100,000,000
Cost basis of Investment Tokens held as of March 31, 2026		$	25,000

As of March 31, 2026, the Company’s Investment Tokens were held in a segregated custody account for the benefit of the Company. The details of the Investment Tokens are as follows:


		Amount						Number of digital assets
(in USD thousands)		March 31, 2026			December 31, 2025			March 31, 2026		December 31, 2025
Non-current
Investment Tokens held in custody		$	9,906		$	14,325		100,000,000		100,000,000
Total non-current Investment tokens – held in custody			9,906			14,325		100,000,000		100,000,000

Total Investment Tokens		$	9,906		$	14,325		100,000,000		100,000,000

Note 6. Property and equipment, net

The components of property and equipment were as follows:


(in USD thousands)		March 31, 2026			December 31, 2025
Mining infrastructure		$	149,232		$	145,354
Miners and mining equipment			401,582			393,467
Data center infrastructure			11,726			16,776
Computer and network equipment			9,413			9,411
Leasehold improvements			1,821			1,836
Land and land improvements			48,103			46,095
AI GPUs			42,573			42,573
Construction in progress			272,726			77,403
Property and equipment, gross			937,176			732,915
Less: Accumulated depreciation			(124,803)			(89,671)
Property and equipment, net		$	812,373		$	643,244

Depreciation and amortization expense related to property and equipment was $37.6 million and $14.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Impairment of long-lived assets

There is considerable management judgment necessary to determine the estimated future cash flows and fair values of the Company’s long-lived assets, and, accordingly, actual results could vary significantly from such estimates, which fall under Level 3 within the fair value measurement hierarchy (see discussion of fair value measurements in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements).

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Note 7. Deposits and prepaid expenses

The components of deposits and prepaid expenses are as follows:


(in USD thousands)		March 31, 2026			December 31, 2025
Current
Prepaid insurance		$	5,623		$	5,643
Prepaid electricity			10,307			14,903
Deposits for site development			1,941			157,596
Deposits for future site purchases			23,308			6,724
Other deposits			6,932			4,466
Total current deposits and prepaid expenses		$	48,111		$	189,332

Non-current
Deposits related to electricity supply under electricity supply agreement		$	6,091		$	6,173
Lease deposits			2,104			2,097
Other deposits			52			44
Total non-current deposits and prepaid expenses		$	8,247		$	8,314

Total deposits and prepaid expenses		$	56,358		$	197,646

Note 8. Investment in unconsolidated joint venture

On November 25, 2022, the Company acquired a 50% membership interest in TZRC LLC (“TZRC”), an early-stage operator of vertically integrated digital asset mining and power facilities (the “Acquired Interests”). The transaction closed on December 6, 2022.

The consideration paid by the Company for the acquisition of the Acquired Interests consisted of $10.0 million of cash and the assumption of a senior secured promissory note (the “TZRC Secured Promissory Note”) with a fair value estimate as of the transaction date of approximately $95.1 million. See Note 9. Loans, notes payable, and other financial liabilities for a discussion of the TZRC Secured Promissory Note.

TZRC is a two-member operating joint venture where both members jointly control the essential areas of the entity’s business. The purpose of TZRC is to develop, construct, install, own, finance, rent, and operate one or more modular data centers located on or near renewable power sources for purposes of digital asset mining. The entity self-mines and provides hosting services. The Company assumed the role of property manager under a property management agreement (“PMA”) to provide day-to-day management and oversight services of TZRC’s data center facilities. The service contract has a term of 10 years and is automatically renewed for successive one-year terms unless either party provides written notice of non-renewal. As property manager, the Company is entitled to approximately $1.5 million per year, subject to downward adjustment based on capacity utilization of TZRC’s data centers. In addition, the PMA allows pass through costs on behalf of the Company, such as payroll and other incidental costs. Pass through costs for the three months ended March 31, 2026 and 2025 were approximately $0.8 million and $0.6 million, respectively.

The Company accounts for its indirect 50% interest in TZRC using the equity method of accounting. For the three months ended March 31, 2026 and 2025, the Company recorded its ownership percentage of income of TZRC within Equity in earnings of unconsolidated joint venture in the Company’s Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for $4.7 million and nil of net income, respectively. The carrying value of the Company’s investment in TZRC was $43.6 million and $45.2 million as of March 31, 2026 and December 31, 2025, respectively, and is included in the Company’s Unaudited Condensed Consolidated Balance Sheets.

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Note 9. Loans, notes payable, and other financial liabilities

Details of the Company’s loans, notes payable, and other financial liabilities are as follows:


(in USD thousands)						March 31,			December 31,
Issuance Date		Maturity Date		Interest Rate		2026			2025
TZRC Secured Promissory Note
December 6, 2022		April 8, 2027		15.25	%	$	43,348		$	49,589

Coinbase Credit Facility
June 26, 2023		June 16, 2026		9.00	%		200,000			200,000

Coatue Note (convertible note)
June 28, 2024		June 28, 2029		8.00	%		159,285			159,285

Two Prime Credit Facility
August 25, 2025		⁽¹⁾		7.99	%		—			—

Other financial liability		⁽²⁾		⁽²⁾			3,205			2,544

Total principal balance							405,838			411,418
Less: unamortized discount and deferred financing costs							(1,088)			(1,257)
Total carrying amount						$	404,750		$	410,161
Less: current portion							199,966			199,926
Long-term portion						$	204,784		$	210,235

⁽¹⁾	See Two Prime Credit Facility below for additional information

⁽²⁾	See Other financial liability below for additional information

The following table outlines maturities of our long-term debt, including the current portion, as of March 31, 2026:


(in USD thousands)
Year ending December 31,
2026 (excluding the three months ended March 31, 2026)		$	200,000
2027			43,348
2028			—
2029			159,285
2030			—
Thereafter			—
Total		$	402,633

During the three months ended March 31, 2026 and 2025, total principal payments of the Company’s debt were $8.0 million and nil, respectively.

During the three months ended March 31, 2026 and 2025, the Company recorded amortization of debt issuance costs, included in interest expense, of $0.2 million and $0.1 million, respectively.

During the three months ended March 31, 2026 and 2025, interest expense related to the Company’s debt was $9.6 million and $6.8 million, respectively.

The Company accounts for all of its loans and notes payable in accordance with FASB ASC Topic 470-20, Debt with Conversion and Other Options (“ASC 470”), ASC 815, and ASC 480. The Company evaluated all of its loans and notes payable to determine if there were any embedded components that qualified as derivatives to be separately accounted for.

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TZRC Secured Promissory Note

The Company assumed the TZRC Secured Promissory Note with an estimated fair value amount as of the date of investment of approximately $95.1 million as part of the consideration paid to acquire an equity membership interest in TZRC. The estimated fair value represents a discount of approximately $1.7 million from the carryover basis of the TZRC Secured Promissory Note. The discount is being amortized over the term of the TZRC Secured Promissory Note into interest expense.

The stated interest on the TZRC Secured Promissory Note accrues at a rate per annum equal to the lesser of (a) a varying rate per annum equal to the sum of (i) the prime rate as published in The Wall Street Journal, plus (ii) 12.0% per annum, (b) 15.25% per annum and (c) the maximum rate of non-usurious interest permitted by law. The Company has the option to defer the interest until maturity of the note under a paid-in-kind (“PIK”) payment option. The Company elected to apply the PIK payment option. Accordingly, interest increases the principal amount of the TZRC Secured Promissory Note. PIK interest is payable upon maturity of the note in April 2027, unless or until any portion or all of the TZRC Secured Promissory Note is prepaid under the prepayment option discussed below. The Company is also subject to post-default interest of an additional 2% upon occurrence of an event of default. The higher interest rate applies from the date of non-payment until such amount is paid in full. As of March 31, 2026 and December 31, 2025, the interest rate on the TZRC Secured Promissory Note was 15.25%.

The TZRC Secured Promissory Note is secured by a first priority security interest in the Company’s membership interest in TZRC. The Company is not a guarantor of the TZRC Secured Promissory Note, and there is no recourse to the Company.

The PIK interest for the three months ended March 31, 2026 was $1.8 million. During the three months ended March 31, 2026, the Company made principal payments of $8.0 million on the TZRC Secured Promissory Note. As of March 31, 2026, approximately $43.3 million principal and PIK interest, exclusive of a $0.4 million discount, was outstanding under the TZRC Secured Promissory Note, with payment of principal and PIK interest due upon the first to occur of (a) the date that is five years from origination on April 8, 2022, (b) the date of any event of dissolution of TZRC, and (c) the date of the closing of certain events specified in TZRC’s governing documents.

Coinbase credit facility

The Company is party to a credit facility with Coinbase Credit, Inc. (“Coinbase”). The original credit facility was established on June 26, 2023 (the “Original Credit Facility”) and was amended and restated on each of January 12, 2024, June 17, 2024, June 16, 2025, and December 22, 2025. The Original Credit Facility provided for an interest rate of 5.0% plus the greater of (i) the US Federal Funds Target Rate – Upper Bound and (ii) 3.25%. On or prior to a drawdown, the Company was required to pledge, as collateral, Bitcoin with a custodian, Coinbase Custody Trust Company, LLC, to be held in a segregated custody account under the Company’s ownership, such that the loan-to-value (“LTV”) ratio of principal outstanding amount of the loan and the fair value of collateral is equal to or less than 60%. If the value of the collateral under the credit facility decreased past a specified margin, the Company may have been required to post additional Bitcoin as collateral.

The credit facility has subsequently been amended and restated, most recently on December 22, 2025 pursuant to the fourth amended and restated credit agreement (the “Fourth Amended and Restated Credit Agreement”) with Coinbase. Under the Fourth Amended and Restated Credit Agreement, the total principal amount available under the facility increased by $70.0 million to up to $200.0 million. Borrowed amounts bear interest at 9.0% per annum and mature on June 16, 2026. The Company drew the additional funds made available under the Fourth Amended and Restated Credit Agreement in full on December 22, 2025.

The Company’s obligations under the Fourth Amended and Restated Credit Agreement are secured by the Borrower’s interest in certain Bitcoin held in the custody of Coinbase Custody Trust Company, LLC (“Coinbase Custody”) and Coinbase’s recourse is limited to such Bitcoin held in the custody of Coinbase Custody.

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As of March 31, 2026, the Company has $200.0 million outstanding with Coinbase under the Fourth Amended and Restated Credit Agreement, exclusive of deferred financing costs of $0.1 million. In May 2026, the Company paid off the outstanding balance of the Coinbase credit facility with proceeds from a term loan with FalconX Charlie, Inc. (“FalconX”). See Note 19. Subsequent events for further details.

Coatue Note (convertible note)

On June 21, 2024, the Company entered into a Convertible Note Purchase Agreement (the “Purchase Agreement”) with Coatue Tactical Solutions Lending Holdings AIV 3 LP (the “Coatue Fund”), and a subsidiary of the Company (the “Guarantor”) providing for the purchase and sale of a convertible note (the “convertible note”) in the principal amount of $150.0 million (such amount, together with any PIK interest accrued from time to time, the “Accreted Principal Amount”). The convertible note is a senior unsecured obligation of the Company and guaranteed by the Guarantor pursuant to a Guaranty Agreement. On June 28, 2024, the Company issued the convertible note to the Coatue Fund (the “Coatue Note”).

The convertible note bears interest at a rate of 8.00% per year, payable quarterly in arrears on each March 31, June 30, September 30, and December 31, commencing September 30, 2024. Interest may be PIK or paid in cash, at the Company’s option. The convertible note has an initial term of five years and may be extended, at the Company’s option, for up to three additional one-year terms. At maturity (unless earlier converted, redeemed, or repurchased), the Company will pay the Coatue Fund the Accreted Principal Amount, together with any accrued and unpaid interest thereon.

During the term of the convertible note, the convertible note is convertible from time to time, in whole or in part, into shares of the Company’s common stock at the option of the Coatue Fund. The initial conversion price of the convertible note is $16.395 per share of common stock, subject to certain anti-dilution adjustments.

The Coatue Fund will have the right to require the Company to repurchase all, but not less than all, of the convertible note upon a change of control or a delisting on a U.S. stock exchange. If the implied valuation of such event is at least $11.50 per share of the Company’s common stock, the mandatory redemption price will be 150% of the original principal amount of the convertible note (“Contingent Repurchase Right”), and if the implied valuation of such event is less than $11.50 per share of the Company’s common stock, the redemption price will be equal to the Accreted Principal Amount, together with any accrued and unpaid interest as of the redemption date.

Beginning on the two-year anniversary of the convertible note’s issuance and continuing until its maturity, the Company has the right, from time to time, to redeem all or any portion of the convertible note for a redemption price equal to 100% of the Accreted Principal Amount, together with any accrued and unpaid interest as of the redemption date if (i) the closing price of the Company’s common stock equals or exceeds 150% of the then-applicable conversion price for a specified period of time and (ii) there is an effective registration statement covering the resale of any shares of the Company’s common stock issued upon conversion of the convertible note or, in the alternative, the shares of the Company’s common stock issuable pursuant to the convertible note to the extent the Coatue Fund converts at the time would be freely tradable by the Coatue Fund pursuant to Rule 144 under the U.S. Securities Act of 1933, as amended (including without any restriction on volume), subject to a daily redemption limitation such that the number of shares of the Company’s common stock into which the Accreted Principal Amount to be redeemed would be converted does not exceed, after giving effect to such conversion, 100% of the average daily trading volume of the Company’s common stock calculated over a specified period of time.

The Purchase Agreement includes certain representations, warranties, and covenants, including limitations on the ability of the Company and the Guarantor to incur indebtedness, make certain restricted payments and investments, and enter into affiliate transactions, subject to certain exceptions enumerated in the Purchase Agreement. The Company may consummate a transaction restricted by the foregoing covenants without the Coatue Fund’s consent, so long as it substantially concurrently and as a condition thereto repurchases the convertible note in full from the Coatue Fund for an amount in cash equal to the greater of (i) 120% of the original principal amount of the convertible note and (ii) the Accreted Principal Amount, plus accrued and unpaid interest to the date of such repurchase. The Purchase Agreement also sets forth certain standard events of default upon which the convertible note may be declared immediately due and payable.

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As mentioned in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Convertible instruments and Derivatives, the Company has identified and separated an embedded derivative, the Contingent Repurchase Right, from the convertible note. The remaining debt host contract is discounted by the initial fair value of the separated embedded derivative from the convertible note of nil and is offset by issuance costs. The debt host contract of the convertible note is subsequently measured at amortized cost, and the debt discount and issuance costs are amortized to interest expense over the expected term of the host contract using the effective interest method. The convertible note has an effective interest rate of 8.24% and its contractual interest expense was $3.2 million for the three months ended March 31, 2026. The amortization of debt discount and issuance costs for the three months ended March 31, 2026 was $0.1 million. As of March 31, 2026, the convertible note had an outstanding principal amount of $159.3 million inclusive of PIK interest accrued, unamortized debt discount and issuance costs of $0.6 million, net carrying amount of $158.6 million, and fair value of $458.7 million. The fair value of the convertible note is estimated using the same method and inputs as the separated embedded derivative from the convertible note as disclosed in Note 10. Derivatives. The Company determined that the convertible note is a Level 3 liability given an unobservable input is included in its valuation. The separated embedded derivative from the convertible note was initially recorded at nil. See Note 10. Derivatives for a discussion of the separated embedded derivative from the convertible note.

Two Prime Credit Facility

On August 25, 2025, the Company entered into a credit agreement (the “Two Prime Credit Agreement”) with Two Prime Lending Limited (“Two Prime”).

The Two Prime Credit Agreement provides for a revolving credit facility of up to $200.0 million. Amounts borrowed under the Two Prime Credit Agreement will bear interest at a rate equal to 7.99% per annum. The facility will mature 364 days after the date of the first borrowing. The Company may prepay any outstanding amounts borrowed, in whole or in part, without premium or penalty, at any time prior to the maturity date. Amounts prepaid may be reborrowed, in whole or in part, at any time prior to the maturity date.

As of March 31, 2026, the Company had no amounts outstanding under the Two Prime Credit Agreement.

Other financial liability

In February 2025, a consolidated subsidiary of the Company entered into a simple agreement for future equity (“SAFE agreement”) for a purchase amount of $3.5 million with a related party entity controlled by a person related to a member of the issuing subsidiary’s management. Pursuant to the terms of the SAFE agreement, on the closing of equity financing while the SAFE agreement is outstanding, the SAFE agreement will automatically convert into the number of shares of preferred stock of the subsidiary equal to the purchase amount divided by the lowest price per share of the Standard Preferred Stock (as defined in the SAFE agreement). The SAFE agreement was classified as a liability pursuant to ASC 480. The SAFE agreement is subject to revaluation at the end of each reporting period, with changes in its fair value recognized in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.

As of March 31, 2026, solely for the purposes of estimating the fair value of the SAFE agreement, the Company estimated an equity conversion probability of 85% within 12 months and a SAFE agreement liquidity event probability of 15% within 27 months. The Company also included the following inputs in estimating the fair value of the SAFE agreement using the PWERM:


		March 31, 2026
Risk-free interest rate		3.70% – 3.80	%
Credit spread		19.10	%

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The following table provides a summary of activity and change in fair value of the SAFE agreement (Level 3 liability):


		Three Months Ended
		March 31,
(in USD thousands)		2026			2025
Balance, beginning of period		$	2,544		$	—
Additions			—			3,500
Change in fair value			661			(1,139)
Balance, end of period		$	3,205		$	2,361

Note 10. Derivatives

The following table presents the Company’s Unaudited Condensed Consolidated Balance Sheets classification of derivatives carried at fair value:


(in USD thousands)			March 31, 2026						December 31, 2025
Derivative	Balance Sheet Line		Asset			Liability			Asset			Liability
Derivatives not designated as hedging instruments:
Bitcoin redemption and put options	Derivative assets		$	161,699		$	—		$	117,402		$	—
Warrant liability	Warrant liability			—			77			—			146
Total derivatives			$	161,699		$	77		$	117,402		$	146

The following table presents the effect of derivatives on the Company’s Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss:


			Three Months Ended
(in USD thousands)			March 31,
Derivative	Statement of Operations Line		2026			2025
Derivatives not designated as hedging instruments:
Bitcoin redemption and put options	Gain on derivatives		$	40,817		$	3,321
Covered call options	Gain on derivatives			—			17,541
Warrant liability	Gain on warrant liability			69			—
Total derivatives			$	40,886		$	20,862

Bitcoin redemption and put options

During December 2024, the Company pledged approximately 968 Bitcoin with Bitmain in connection with its purchase of approximately 30,000 Bitmain Antminer S21+ ASIC miners under the Bitmain Purchase Agreement. Under the arrangement, the Company had the option to redeem the pledged Bitcoin at a mutually agreed upon fixed price, which started from the shipment date of the purchased ASIC miners and originally ended three months thereafter. The amount of Bitcoin that could be redeemed was pro-rata of the percentage of miners shipped on a compute power (hashrate) basis. During 2025 and January 2026, the Company amended the redemption period multiple times, extending the date by which the pledged Bitcoin could be redeemed. As noted in Note 5. Digital assets, during January 2026, the Bitcoin redemption option’s redemption period lapsed and went unredeemed. The Company accounted for this Bitcoin redemption option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives. The Company previously accounted for this Bitcoin redemption option as a Level 3 derivative asset as of December 31, 2024 due to a significant unobservable input included in the fair value estimate of the Bitcoin redemption option, which was the estimated shipment date of the purchased ASIC miners. During the fiscal year ended 2025, the shipment date was finalized and therefore was no longer an unobservable input.

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As part of the 2025 ABTC Bitmain Purchase Agreement, in August, September, and October 2025, American Bitcoin pledged Bitcoin with Bitmain in connection with a purchase of approximately 17,280 U3S21EXPH ASIC miners. The total amount of Bitcoin pledged was approximately 2,776 Bitcoin. American Bitcoin pledged the Bitcoin in four tranches, two tranches in August 2025, one tranche in September 2025, and one tranche in October 2025. American Bitcoin has the option to redeem the pledged Bitcoin at a mutually agreed upon price starting from and for up to twenty-four months after the day immediately following each pledge date and loses the right to redeem the pledged Bitcoin should it not redeem them by the end of the redemption period. The Company accounted for this Bitcoin redemption option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives. As part of the purchase of the U3S21EXPH ASIC miners, the Company paid cash of approximately $46.0 million as a deposit and for certain expenses. American Bitcoin had an option to replace the $46.0 million cash paid with a Bitcoin pledge on or before November 5, 2025. In October 2025, American Bitcoin exercised its option to replace the $46.0 million cash paid with a Bitcoin pledge by pledging an additional 391 Bitcoin at a mutually agreed upon fixed price, and Bitmain refunded the Company’s $46.0 million comprising of the deposit and certain expenses.

In February 2026, in connection with the 2026 ABTC Bitmain Purchase Agreement, American Bitcoin pledged approximately 314 Bitcoin with Bitmain representing 80% of the purchase price of approximately 11,298 S21 XP ASIC miners. American Bitcoin has the option to redeem the pledged Bitcoin at a mutually agreed upon price starting from and for up to twenty-four months after the day immediately following the pledge date and loses the right to redeem the pledged Bitcoin should it not redeem them by the end of the redemption period. As part of the agreement, American Bitcoin has an option to extend the pledge period for an additional twelve months. American Bitcoin also has the option to pay the remaining 20% of the purchase price under the 2026 ABTC Bitmain Purchase Agreement by pledging Bitcoin at a mutually agreed upon floor price, which is due one year after the shipment date of the S21 XP ASIC miners. The Company accounted for this Bitcoin redemption and put option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives.

The following table provides a summary of activity and change in fair value of the Company’s Bitcoin redemption and put options (previously a Level 3 derivative asset):


		Three Months Ended
		March 31,
(in USD thousands)		2026			2025
Balance, beginning of period		$	—		$	18,076
Additions			—			—
Transfer out of Level 3 ⁽¹⁾			—			(18,076)
Balance, end of period		$	—		$	—

⁽¹⁾	The Bitcoin redemption and put options were transferred out of Level 3 due to changes in the observability of inputs used in the valuation.

Covered call options

As noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives, from time to time, the Company has sold covered call options on Bitcoin to generate cash flow on a portion of its digital assets. In connection with these covered call options, the Company has pledged Bitcoin as collateral with one of its digital asset custodians, in a quantity equal to the notional amount, for these covered call options sold. The collateral is returned to the Company should the covered call options expire with the underlying reference price below their strike price. The covered call options are only exercisable upon the date of expiry, are automatically exercised if the underlying reference price is greater than the strike price of the call option, and are settled with delivery of the underlying Bitcoin. The reference price is the Coinbase exchange Bitcoin price quoted in U.S. dollars. Covered call options were carried at fair value and were Level 2 liabilities as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Fair value measurement. During the three months ended March 31, 2025, covered call options on 1,500 Bitcoin notional expired with the underlying reference price below their strike price, and the Company recorded a realized gain of $12.1 million and an unrealized gain of $5.4 million related to changes in the fair value of outstanding covered call options. As of March 31, 2026, the Company had no covered call options outstanding.

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Separated embedded derivative from the convertible note

In June 2024, as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Convertible instruments and Note 9. Loans, notes payable, and other financial liabilities the Company issued a convertible note, the Coatue Note, with embedded derivatives and separated the Contingent Repurchase Right embedded derivative. The separated embedded derivative from the convertible note was separated from its debt host contract and was accounted for as a derivative liability carried at fair value in accordance with ASC 815. As noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Fair value measurement, the separated embedded derivative from the convertible note is a Level 3 liability. A significant unobservable input included in the fair value estimate of the separated embedded derivative from the convertible note is management’s estimate of the Contingent Repurchase Right’s probability of occurrence, which was remote as at inception and March 31, 2026. As such, the initial fair value of the separated embedded derivative from the convertible note was nil and the fair value as of March 31, 2026 was nil.

As of March 31, 2026, the Company estimated the fair value of the separated embedded derivative from the convertible note using the PDE Model with the following inputs and inputs noted in the paragraph above:


		March 31, 2026
Dividend yield		—	%
Implied volatility		89.80	%
Risk-free interest rate		4.00	%
Credit spread		14.00	%

Warrant liability

On March 31, 2025, a wholly owned subsidiary of the Company contributed substantially all of the Company’s ASIC miners to American Data Centers Inc. in exchange for an 80% interest in American Data Centers Inc. In connection with the transaction, American Data Centers Inc. was subsequently renamed as American Bitcoin Corp. (“Historical ABTC”).

On May 9, 2025, Gryphon Digital Mining, Inc., a Delaware corporation (“Gryphon”), GDM Merger Sub I Inc., a Delaware corporation and wholly owned direct subsidiary of Gryphon (“Merger Sub Inc.”), GDM Merger Sub II LLC, a Delaware limited liability company and wholly owned direct subsidiary of Gryphon (“Merger Sub LLC”), and Historical ABTC, a majority owned subsidiary of the Company, entered into an Agreement and Plan of Merger (the “ABTC Merger Agreement”).

On September 3, 2025, in accordance with the terms of the ABTC Merger Agreement, among other things, (i) Merger Sub Inc. merged with and into Historical ABTC, with Historical ABTC surviving the merger (the “First Merger”) as a wholly owned direct subsidiary of Gryphon (the corporation surviving the First Merger, the “First Merger Surviving Corporation”) and (ii) immediately after the First Merger, the First Merger Surviving Corporation merged with and into Merger Sub LLC, with Merger Sub LLC surviving the merger (the “Second Merger” and, taken together with the First Merger, the “ABTC Merger”) as a wholly owned direct subsidiary of Gryphon. Gryphon was renamed American Bitcoin Corp. after the completion of the ABTC Merger (the “Closing”).

In connection with the ABTC Merger, warrants to purchase Gryphon common stock (the “ABTC-Gryphon Warrants”) outstanding immediately before the ABTC Merger were assumed by American Bitcoin. Post-ABTC Merger, the warrant holders are entitled to receive, upon exercise, in lieu of Gryphon common stock, shares of Class A common stock of American Bitcoin. The ABTC-Gryphon Warrants have an exercise price of $1.50 per share after giving effect of the ABTC Merger. These warrants expire in January 2035.

In connection with the ABTC Merger, American Bitcoin assumed 1,373,374 ABTC-Gryphon Warrants. As of March 31, 2026, there were 89,222 ABTC-Gryphon Warrants outstanding.

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The ABTC-Gryphon Warrants meet the definition of a derivative under ASC 815, and due to the terms of the warrants, are required to be liability classified. The ABTC-Gryphon Warrant liabilities are carried at fair value, and are Level 3 liabilities as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements.

As of March 31, 2026, the Company estimated the fair value of the ABTC-Gryphon Warrant liability using the Black-Scholes pricing model with the following inputs:


			March 31, 2026
Exercise price		$	1.50
Expected price volatility			125.00	%
Risk-free interest rate			4.18	%
Expected term (in years)			8.80
Dividend yield			—	%

The following table provides a summary of activity and change in fair value of the Company’s warrant liability (Level 3 derivative liability), and there was no activity during the three months ended March 31, 2025:


		Three Months Ended
(in USD thousands)		March 31, 2026
Balance, beginning of period		$	146
Change in fair value			(69)
Balance, end of period		$	77

Note 11. Leases

The Company’s operating leases are for its offices and certain of its mining facilities and data centers. The Company’s subsidiaries previously had finance leases, which were primarily related to equipment used at its data centers and the power plant located in Iroquois Falls, Ontario under the Far North JV. As of December 31, 2025, the Company classified the right-of-use asset and lease liability related to the finance lease as assets and liabilities held for sale due to the Far North JV sale described in Note 3. Far North JV sale. The Company does not have any finance leases as of March 31, 2026.

The following table shows the right-of-use assets and lease liabilities as of March 31, 2026 and December 31, 2025:


		March 31,			December 31,
(in USD thousands)		2026			2025
Right-of-use assets:
Operating leases		$	17,499		$	18,496
Total right-of-use assets		$	17,499		$	18,496

Lease liabilities:
Operating leases		$	18,161		$	19,170
Total lease liabilities		$	18,161		$	19,170

The Company no longer has a finance lease as of March 31, 2026 due to the sale of the Far North JV as noted in Note 3. Far North JV sale.

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The Company’s lease costs are comprised of the following:


		Three Months Ended
		March 31,
(in USD thousands)		2026			2025
Operating leases
Operating lease cost		$	1,194		$	1,203
Variable lease cost			240			237
Operating lease expense			1,434			1,440
Short-term lease expense			165			83
Total operating lease expense			1,599			1,523
Finance leases
Amortization of financed assets			—			1,426
Interest on lease obligations			181			651
Total finance lease expense			181			2,077
Total lease expense		$	1,780		$	3,600

The following table presents supplemental lease information:


		Three Months Ended
		March 31,
(in USD thousands)		2026			2025
Operating cash outflows – operating leases		$	1,289		$	1,234
Operating cash outflows – finance leases		$	183		$	580
Financing cash outflows – finance leases		$	957		$	119

Right-of-use assets obtained in exchange for operating lease liabilities		$	—		$	212

		Three Months Ended
		March 31,
		2026			2025
Weighted-average remaining lease term – operating leases (in years)			8.0			8.3
Weighted-average remaining lease term – finance leases (in years)			—			3.8
Weighted-average discount rate⁽¹⁾ – operating leases			11.8	%		11.6	%
Weighted average discount rate – finance leases			—	%		10.0	%

⁽¹⁾

The Company’s operating leases do not provide an implicit rate, therefore the Company uses the incremental borrowing rate at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis for similar assets over the term of the lease.

The following table presents the Company’s future minimum operating lease payments as of March 31, 2026:


		Operating
(in USD thousands)		Leases
Remainder of 2026		$	3,663
2027			4,673
2028			4,331
2029			3,334
2030			1,620
Thereafter			11,324
Total undiscounted lease payments			28,945
Less present value discount			(10,784)
Present value of operating lease liabilities		$	18,161

As of March 31, 2026, there were no future finance lease payments.

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Note 12. Equity

Authorized shares

The Company’s certificate of incorporation, as amended, authorized 1,000,000,000 shares of common stock, par value of $0.01 per share, and 25,000,000 shares of preferred stock, par value of $0.01 per share.

Common stock

At-the-Market Offering and Stock Repurchase Programs

On December 4, 2024, the Company entered into a Controlled Equity Offering Sales Agreement to establish an at-the-market equity program (the “2024 ATM”), allowing the Company to offer and sell up to $500.0 million of its common stock from time to time. Concurrently, the Company launched a $250.0 million stock repurchase program enabling the Company to repurchase up to 4,683,936 shares of its common stock (representing 5.0% of the Company’s issued and outstanding common stock as of December 4, 2024) within twelve months of launch. During the three months ended March 31, 2025, the Company issued and sold 4,205,019 shares of its common stock under the 2024 ATM for gross proceeds of $113.1 million, incurred issuance costs of $1.1 million, and repurchased nil shares of its common stock under the stock repurchase program.

On August 22, 2025, the Company established a $1.0 billion at-the-market equity program (the “2025 ATM”), which replaced the 2024 ATM. During the three months ended March 31, 2026, the Company issued and sold 2,101,363 shares of its common stock under the 2025 ATM for gross proceeds of $120.9 million and incurred issuance costs of $0.8 million.

Common stock warrants

In connection with the business combination of Hut 8 Mining Corp. (“Legacy Hut”) and U.S. Data Mining Group, Inc. (“USBTC”) on November 30, 2023 (the “Business Combination”), warrants to purchase Legacy Hut common shares outstanding immediately before the Business Combination were assumed by the Company. Post-Business Combination, the warrant holders are entitled to receive, upon exercise, in lieu of Legacy Hut common shares, shares of common stock of the Company at an exchange ratio of 0.2000, rounded down to the nearest whole share at a warrant agreement level if applicable, and at an exercise price of the original exercise price divided by the exchange ratio of 0.2000, rounded up to the nearest whole cent if applicable. The warrants include a net share settlement clause at the discretion of the warrant holder, which may result in a variable number of shares being issued for a fixed price due to the use of a certain volume-weighted average price of shares. The Company accounts for its warrants as equity instruments based on the specific terms of the relevant warrant agreements and has recorded them in additional paid-in capital in equity based on their fair value on the date of assumption. The classification of the warrants, including whether such instruments should be recorded as liabilities, is reassessed at the end of each reporting period. The fair value of each warrant was estimated on the date of assumption using the Black-Scholes pricing model.

The warrants assumed in the Business Combination expire on September 17, 2026.

Transactions involving the Company’s equity-classified warrants are summarized as follows:


				Weighted average			Weighted average
		Number of		exercise price			remaining contractual
(in thousands, except share and per share amounts)		shares		(per share)			life (in years)
Outstanding as of December 31, 2025		1,895		$	53.45			0.7
Outstanding as of March 31, 2026		1,895		$	53.45			0.5

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American Bitcoin non-controlling interest

On September 3, 2025, American Bitcoin entered into a Controlled Equity Offering Sales Agreement to establish an at-the-market equity program (the “American Bitcoin 2025 ATM”), allowing American Bitcoin to offer and sell up to $2.1 billion of its shares of Class A common stock from time to time. During the three months ended March 31, 2026, American Bitcoin issued and sold 84,068,493 shares of its Class A common stock under the American Bitcoin 2025 ATM for gross proceeds of $111.0 million and incurred issuance costs of $0.5 million. As a result, the Company recorded $32.5 million to additional paid-in capital, representing the portion of the shares of American Bitcoin Class A common stock sold under the American Bitcoin 2025 ATM attributable to the Company, and $78.0 million to non-controlling interest, representing the portion attributable to the non-controlling interest.

During the three months ended March 31, 2026, American Bitcoin issued shares of its Class A common stock to third parties, as disclosed above in this note, thereby reducing the Company’s ownership percentage in American Bitcoin. The Company continues to maintain control of American Bitcoin after these share issuances, and the issuances were accounted for as equity transactions under FASB ASC Topic 810, Consolidation (“ASC 810”). These share issuances by American Bitcoin are also accounted for under FASB ASC Topic 740, Income Taxes (“ASC 740”) by assessing the deferred tax consequences of the outside basis difference. The tax impact of the difference between the fair value of the consideration received and the amount by which the non-controlling interest is adjusted is recognized in equity. Accordingly, the Company recorded $8.5 million as a deferred tax liability, with the offset recognized in additional paid-in capital. No gain or loss was recognized.

Far North JV non-controlling interest

As described in Note 3. Far North JV sale, the Company sold its ownership in the Far North JV on February 2, 2026. Immediately prior to the sale, (1) the non-controlling interest exercised 2,000,000 Penny Warrants of the Far North JV and (2) the non-controlling interest sold its entire ownership in the Far North JV to the Company for $10.0 million (C$13.9 million) that was paid by TransAlta to the non-controlling interest directly as partial satisfaction of the purchase price of the Far North JV sale. Given the Company maintained control of the Far North JV after both the exercise of the Penny Warrants and acquiring the non-controlling interest, these transactions were accounted for as equity transactions under ASC 810.

The following table summarizes the effect of changes in ownership of American Bitcoin and the Far North JV on equity attributable to Hut 8 Corp. for the periods presented:


		Three Months Ended
		March 31,
(in USD thousands)		2026			2025
Net loss attributable to Hut 8 Corp.		$	(219,849)		$	(133,889)
Additional paid-in capital:
Increase in additional paid-in capital from the issuance of Class A common stock by American Bitcoin, net of issuance costs			32,500			—
Decrease in additional paid-in capital from deferred income tax on American Bitcoin Corp. – equity transactions			(8,539)			—
Decrease in additional paid-in capital from the exercise of Penny Warrants issued by the Far North JV			(283)			—
Decrease in additional paid-in capital from the non-controlling interest acquisition prior to the sale of the Far North JV			(7,815)			—
Changes from net loss attributable to Hut 8 Corp. and total effect of changes in ownership of American Bitcoin and the Far North JV on equity attributable to Hut 8 Corp.		$	(203,986)		$	(133,889)

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ABTC-Akerna Warrants

In connection with the ABTC Merger on September 3, 2025, warrants to purchase shares of Gryphon common stock originally issued by and assumed from Akerna Corp. (the “ABTC-Akerna Common Warrants”) and warrants issued to underwriters to purchase shares of Gryphon common stock originally issued by and assumed from Akerna Corp. (the “ABTC-Akerna Underwriter Warrants” and, collectively with the ABTC-Akerna Common Warrants, the “ABTC-Akerna Warrants”) outstanding immediately before the ABTC Merger were assumed by American Bitcoin. Post-ABTC Merger, the warrant holders are entitled to receive, upon exercise, in lieu of Gryphon common stock, American Bitcoin Class A common stock, at an exchange ratio of 0.2000 and at an exercise price of the exercise price immediately preceding the ABTC Merger divided by the exchange ratio of 0.2000. The ABTC-Akerna Warrants include a net share settlement clause at the discretion of the warrant holder, which may result in a variable number of shares being issued for a fixed price. The Company accounts for its ABTC-Akerna Warrants as equity instruments based on the specific terms of the relevant warrant agreements and has recorded them in additional paid-in capital in equity based on their fair value on the date of assumption. The classification of the ABTC-Akerna Warrants, including whether such instruments should be recorded as liabilities, is reassessed at the end of each reporting period. The fair value of each ABTC-Akerna Warrant was estimated on the date of assumption using the Black-Scholes pricing model.

The ABTC-Akerna Common Warrants and ABTC-Akerna Underwriter Warrants assumed in the ABTC Merger expire on July 5, 2027 and June 29, 2027, respectively.

Transactions involving the Company’s equity-classified ABTC-Akerna Warrants are summarized as follows:

Hut 8 Corp. 10-Q