Key Highlights

  • Third-quarter 2026 Revenue grew 32%, arriving at USD 49.0 million; digital infrastructure leasing supplied USD 43.9 million and Bitcoin Mining USD 5.1 million.
  • Net income reached USD 17.4 million, or USD 0.38 per diluted share, against a USD 4.5 million loss, after a USD 73.2 million Cryptocurrency Fair Value gain and a USD 65.9 million Warrant charge.
  • Adjusted EBITDA, a non-GAAP figure, came to USD 35 million versus less than USD 1 million, reflecting the move from mining into higher-margin leasing.
  • Cash of USD 381 million and 2,954 bitcoin worth USD 247 million were held at September 30, 2026, with no borrowings, and 2026 total revenue guidance of USD 190 million to USD 195 million was reaffirmed.

Leasing Shift Pushes Gross Profit Into the Black

Results for the third quarter arrived from Ionic Digital (NASDAQ:IOND) on November 4, 2026. The company builds high-performance computing and Data Center infrastructure and has pivoted away from bitcoin mining toward leasing power-ready capacity. Leasing accounted for roughly 90% of the USD 49.0 million in revenue, while mining income dropped to USD 5.1 million. Gross profit reached USD 39 million, against a USD 7 million loss, and adjusted gross profit, a non-GAAP figure, came to USD 44 million, versus USD 11 million. Management pointed out that the USD 44 million of leasing revenue translates to only USD 7 million on a cash basis, since cash rent ramps through February 2028. General and administrative spending rose to USD 25.8 million from USD 10.1 million.

Warrant Liability and Bitcoin Marks Drive the Bottom Line

Operating income of USD 86.7 million included a non-cash USD 73.2 million gain tied to the fair value of cryptocurrency holdings. Below operating income, a non-cash USD 65.9 million expense was booked because warrants issued in June 2026 became more valuable, leaving a USD 100.0 million warrant liability recorded. Once the USD 6.7 million tax provision was deducted, Net Income landed at USD 17.4 million. For the first nine months, the Business recorded a nine-month loss totaling USD 30.9 million, which works out to USD 0.79 per share, meaning this quarter's profit depends on non-cash marks that could reverse. Since the quarter closed, roughly a quarter of its bitcoin was sold, bringing in about USD 62 million in cash.

Ward County Power Request, Reaffirmed Outlook and Lease Pipeline

ERCOT placed the company's 466 gross MW large-load request at Ward County into a provisional Batch Zero Baseload Pathway (b) category in September. The company still expects energization in late 2027, with ERCOT's final classification due in December, and it is Marketing roughly 500 gross MW of remaining near-term capacity. Nscale holds an existing lease, which the company links to Microsoft Demand and an Nvidia guarantee. Management kept its 2026 targets: USD 175 million of leasing revenue, USD 15 million to USD 20 million of mining revenue, USD 137.5 million to USD 142.5 million of adjusted EBITDA, and USD 45 million to USD 60 million of capital expenditures. Downside factors are the ERCOT process, regulatory shifts, reliance on a few customers and project slippage.

Where Things Stand

Much of it, since the bitcoin gain effectively carried the quarter. Net income of USD 17.4 million rests on a USD 73.2 million cryptocurrency fair value gain, which offset a USD 65.9 million non-cash warrant charge. Leasing revenue and margins improved, and the Balance Sheet carries no debt. Watch the ERCOT final ruling due in December, new leasing of the remaining capacity, and how quickly cash rent builds through February 2028.