PowerCompute mined 36% more bitcoin as mining revenue fell 15%

PowerCompute mined 23.9 bitcoin during the quarter ended September 30, a company-reported increase of 35.8% from the corresponding 2025 period, even as its digital-mining revenue declined.

The Nasdaq-listed company reported $1.71 million of digital-mining revenue, down from $2.01 million a year earlier. That is a 15.2% decrease based on Coinburn’s calculation from the unaudited figures furnished to the Securities and Exchange Commission on November 13.

The divergence matters because bitcoin production alone does not determine a miner’s earnings. The value assigned to mined coins, electricity costs, network difficulty, curtailment revenue and accounting changes in existing holdings can all move independently of the number of coins produced.

Lower bitcoin values offset higher production

PowerCompute attributed the revenue decline to a lower average value for each bitcoin mined. Its earnings release placed that company-defined average at approximately $71,400 during the third quarter, compared with approximately $114,200 during the same 2025 quarter—a decline of 37.5%.

Those figures are accounting averages reported by PowerCompute for two three-month periods. They are not current bitcoin prices, exchange closing auctions or volume-weighted market benchmarks, and they should not be used to infer the price available for any particular sale.

The company’s mining margin reached 50.7% during the quarter, compared with 49% a year earlier and 29% in the second quarter of 2026. PowerCompute defines that measure as digital-mining revenue minus direct mining costs, net of curtailment and energy sales. It excludes depreciation and several other operating expenses.

PowerCompute reported an energy cost of approximately $35,000 per bitcoin during the third quarter, net of curtailment and energy sales, versus approximately $58,000 in the comparable 2025 quarter. Summer curtailment and energy sales contributed approximately $304,000 during the latest period, making the cost figure dependent partly on grid-market activity rather than mining equipment alone.

Fair-value movements shaped the bottom line

PowerCompute recorded $373,728 of net income attributable to common shareholders for the third quarter, compared with a $4.08 million loss a year earlier. Its operations still produced a $910,881 loss before non-operating and fair-value items, although that was narrower than the $3.52 million operating loss reported for the 2025 comparison period.

The latest result included a $6.68 million gain on digital assets receivable under the company’s Arch Lending arrangement, offset partly by a $4.38 million loss on the related loan derivative and approximately $1.01 million of interest expense. The two fair-value entries supplied a net positive contribution of approximately $2.30 million before other items, based on Coinburn’s arithmetic.

That contribution exceeded reported common-shareholder net income, but subtracting it does not produce an alternative accounting result because other expenses and asset measurements would still apply. It does show why the quarterly profit should not be interpreted as a measure of mining profitability alone.

Debt fell, but the disclosure remains preliminary

PowerCompute repaid and terminated the Arch bitcoin-backed facility on September 24. The company said the transaction reduced secured debt from approximately $19.4 million at June 30 to $1.25 million and returned about 39.6 bitcoin that had remained after collateral sales satisfied the facility.

The company ended September with 63.8 bitcoin valued at approximately $5.3 million using an approximately $83,800 measurement price, plus about $653,000 in cash. These are point-in-time company figures, not current treasury values. PowerCompute’s previous quarterly report had warned of substantial doubt about its ability to continue as a going concern; the November 13 release says that risk remains described in its third-quarter report.

However, the reviewed SEC record is a furnished Form 8-K with an unaudited earnings release, not the complete third-quarter Form 10-Q. Until that quarterly report is available, the detailed liquidity assumptions, updated going-concern analysis and accounting notes cannot be independently assessed from the current packet.