Shares fell 9.7% as investors reacted negatively to a cautious outlook amid material margin compression and a significant net loss driven by Bitcoin price declines, despite operational improvements in production and hash rate.

• Bitcoin production grew 19% sequentially to 26.1 BTC, reaching a record energized hash rate of 790 petahash in March.
• Revenue declined 11% year-over-year to approximately $2.1 million, pressured by a lower average Bitcoin price (~$75,700 vs. ~$99,700 in prior quarter).
• Mining margin compressed slightly to 24.1% from 25% last quarter, despite ~$368,000 in curtailment and energy sales providing partial offset.
• The net loss widened to $10.1 million due to a $7 million non-cash markdown on digital assets tied to a Bitcoin price drop from $87,500 to $68,300.
• Balance sheet includes 338.2 BTC valued at $23.1 million as of quarter-end, yet market capitalization remains well below Bitcoin treasury value, reflecting investor caution.