Shares dropped 15.3% after the company reported significant revenue declines and margin pressures, driven by sharp drops in Ethereum staking and mining revenue alongside cautious remarks on the slower transition away from legacy mining.
- Total revenue declined 13.7% quarter-over-quarter to $27.9 million, reflecting broad deceleration across key segments.
- Ethereum staking revenue fell roughly 29.4% quarter-over-quarter due to lower average ETH prices and reduced staked balances.
- Digital asset mining revenue dropped nearly 33%, impacted by decreased bitcoin production and lower bitcoin prices.
- Cloud services revenue decreased 13.1%, partially offset by a 23.9% increase in colocation services revenue.
- Net loss improved slightly but remained large at $146.7 million, weighed down by non-cash mark-to-market adjustments on digital assets.
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