Overview
- The company reported a $684 million GAAP net loss for the quarter driven mainly by a $450.4 million impairment and a $102.1 million fair‑value write‑down on decommissioned bitcoin‑mining assets.
- AI cloud services revenue more than doubled sequentially to $70.5 million while total revenue fell to $137.2 million and adjusted EBITDA dropped to $19.2 million.
- Shares fell about 15% after the results last week as investors reacted to the headline loss and the sharp EBITDA decline.
- Management says 2026 capacity is largely sold out, customers are prepaying a significant share of GPU costs, and the company is guiding to $4 billion of contracted ARR contingent on on‑time delivery of new GPU builds.
- Analysts remain broadly bullish with high price targets that assume successful project delivery and 2027 contract ramps, but the investment case depends on financing, timely construction and converting contracted ARR into realized revenue and margins.