Revenues: $6.2 million, 28% QoQ increase; Approximately 129 MW of Energized Capacity
Completed Hood County Acquisition with 10NetZero to Advance AI and HPC Development
Entered into LOI with Tensor to Advance Planned 17 MW AI/HPC Campus at Hood County
MIDLAND, Pa., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Big Digital Energy, Inc. ("We," "Big Digital" or the "Company") (Nasdaq: "BGDE"), a developer and operator of next-generation digital infrastructure, today announced financial results for the second quarter ended June 30, 2026.
Q2 2026 Financial Highlights
-- Revenue: $6.2 million; 28% QoQ increase
-- Digital Colocation Revenue: $3.5 million; broadly consistent QoQ
-- Energy Management Revenue: $2.6 million; 120% QoQ increase
-- Digital Assets Mining Revenue: $0.03 million
-- Net Loss: ($7.4) million
-- Adjusted EBITDA1 (Loss): ($4.4) million
-- Stockholders' Equity: $12.4 million
Q2 2026 Key Operating Metrics
-- Energized Capacity: approximately 129 MW -- Capacity Deployed under Six Thirty AI Agreement: approximately 75 MW
CEO Commentary
"During the second quarter, we made meaningful progress repositioning Big Digital Energy for its next phase of growth," said Phil Stanley, Chief Executive Officer. "Since assuming leadership, we have strengthened corporate governance, resolved numerous legacy matters, improved our balance-sheet position and enhanced alignment with shareholders, with members of management beneficially owning approximately 29% of the Company. Our objective is to build a company that is disciplined in its capital allocation, transparent in its execution and focused on creating long-term shareholder value".
Mr. Stanley continued, "We are executing a clear strategy centered on acquiring, developing and monetizing powered infrastructure assets that we control for AI and high-performance computing markets. Today, our platform includes 129 megawatts of energized capacity, have begun ramping utilization under our Six Thirty AI colocation agreement and expanded our development portfolio through the Cleburne and Hood County acquisitions. While we advance toward higher-value AI and HPC deployments, we have also begun putting previously dormant assets back to work. By monetizing underutilized infrastructure through our colocation and mining initiatives, we are converting otherwise idle capacity into cash-flow generating infrastructure assets, creating a bridge that supports our transition while preserving the flexibility to redeploy that capacity into AI and HPC applications as those opportunities materialize."
Mr. Stanley added, "As evidence of this, earlier this week, Texas Load House, our 50/50 joint venture with 10NetZero, entered a letter of intent with Tensor IQ that provides a framework to advance Hood County toward a customer-oriented AI infrastructure campus. Subject to definitive agreements and other conditions, the parties are planning an initial 17 MW deployment featuring 7,748 NVIDIA B300 GPUs, with the site targeted to be in service by the second quarter of 2027."
Mr. Stanley concluded, "Our priorities remain clear: expand our portfolio of powered sites, advance development activities, establish strategic partnerships and secure the capital necessary to execute our AI strategy. During the quarter, we engaged Northland Capital Markets to evaluate a broad range of financing alternatives across our portfolio, including project- and site-level financing structures designed to maximize shareholder value. Together, we are actively pursuing numerous capital initiatives to fund our AI and HPC growth strategy while maintaining a disciplined approach to capital formation and minimizing unnecessary shareholder dilution. We believe the combination of powered infrastructure, operational execution and thoughtful capital formation positions Big Digital to capitalize on one of the most compelling opportunities in digital infrastructure today."
Strategic & Business Updates
-- Acquired the Cleburne, Texas powered site
-- Completed the Hood County acquisition through a 50/50 joint venture with
10NetZero, adding 17 MW of energized capacity with a pathway to 111 MW of
utility power and potential expansion to approximately 300 MW.
-- Texas Load House, the Company's 50/50 joint venture with 10NetZero,
entered into a non-binding letter of intent with Tensor IQ relating to
the planned Hood County AI infrastructure campus. Subject to execution of
definitive agreements, financing, power availability, development,
customer and other conditions, the LOI contemplates reserving and
developing up to 17 MW of gross power capacity, an initial deployment of
7,748 NVIDIA B300 GPUs, and targets in-service timing in the second
quarter of 2027. Based solely on indicative commercial terms in the
non-binding LOI and assuming full utilization over the applicable term,
the LOI contemplates potential aggregate power-lease-related revenue to
TLH of approximately $546 million over an initial 15-year term, with two
5-year extension options that, if exercised and fully utilized, could
increase potential aggregate lease-related revenue to approximately $1.07
billion. These amounts are not contracted revenue and remain subject to
significant conditions and risks.
-- Began ramping the Six Thirty AI colocation agreement, increasing
utilization of previously dormant powered infrastructure.
-- Engaged Northland Capital Markets to evaluate site-level financing
alternatives and support the Company's AI and HPC growth initiatives.
Corporate & Governance Updates
-- Made significant progress toward resolving legacy matters inherited from
prior management.
-- Expanded the Board of Directors with the appointment of independent
directors, strengthening governance and oversight.
-- Eliminated the Company's stockholder rights plan (poison pill),
reflecting management's commitment to shareholder alignment.
-- Regained compliance with Nasdaq's stockholders' equity listing
requirement and continue to work toward maintaining full compliance with
all applicable listing standards.
Earnings Call and Webcast Information:
Big Digital Energy will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of results followed by a question-and-answer period. To participate in this event, please log on or dial in approximately 5 minutes before the beginning of the call.
Date: August 12, 2026
Time: 5:00 p.m. ET
Participant Call Links:
-- Live Webcast: Link
-- Dial-in Registration Link:
-- A replay of the call will be archived at
https://www.bigdigital.energy
Footnotes
(1) Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Measures" at the end of this press release for a reconciliation to net loss, the most directly comparable GAAP measure, and additional information regarding the limitations and use of this measure.
About Big Digital Energy, Inc.
Big Digital Energy, Inc. (Nasdaq: "BGDE") is a U.S.-based technology company that designs, builds, and operates next-generation digital infrastructure platforms. The Company provides services spanning artificial intelligence ("AI"), high-performance computing ("HPC"), digital assets (including Bitcoin mining), and other intensive compute applications. The Company delivers both self-mining operations and colocation/hosting for enterprise customers, with a vertically integrated infrastructure model built for scalability and efficiency.
A core part of the Company's strategy is identifying and advancing sites positioned to support high-performance compute with the infrastructure required for long-term deployment. With approximately 129 megawatts of energized capacity and additional capacity under development, the Company is positioning itself as a competitive provider of digital infrastructure solutions to support the demand for AI data centers.
CAUTIONARY LANGUAGE ON FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected benefits of the joint venture, the deployment of assets, revenue growth, and the Company's strategic initiatives. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "project," "target," "will," "would," "subject to," and similar expressions.
These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. In addition, statements regarding the Tensor IQ letter of intent, the Hood County development project, projected lease-related revenue, anticipated GPU deployment, planned capacity, commercialization opportunities, customer demand, and targeted in-service dates are subject to significant risks and uncertainties, including, without limitation: the non-binding nature of the LOI; the possibility that definitive agreements are not negotiated, executed, or consummated on anticipated terms or at all; the creditworthiness, performance, and continued participation of Tensor IQ, 10NetZero, Texas Load House, or other counterparties. Important factors include, without limitation: the Company's ability to continue as a going concern; the Company's ability to maintain its Nasdaq listing; the need for and availability of additional financing; the Company's ability to obtain any required stockholder approvals and to file and maintain the effectiveness of
any required registration statements; availability and cost of power, grid interconnection and build-out timing; the feasibility, permitting, and development of any behind-the-meter generation; execution risks in developing AI/HPC digital infrastructure; market demand for AI/HPC and accelerated computing; evolving and uncertain regulation of digital assets, artificial intelligence, and high-performance computing; volatility in digital asset prices and reductions in mining incentives; and the other risks described under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in other filings made with the SEC from time to time. Any forward-looking statements speak only as of the date of this report, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this report, except as required by law.
Big Digital Energy, Inc. Condensed Balance Sheets
(Unaudited)
June 30, December 31,
2026 2025
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,290,273 $ 13,271,256
Prepaid expenses 7,035,680 3,677,000
Cryptocurrencies held for
customers - 903,784
Trade and other receivables,
net 9,441,721 9,642,423
------------ ------------
Total current assets 32,767,674 27,494,463
Property, plant and equipment, net 20,342,584 22,580,313
Derivative asset 3,450,530 3,475,110
Security deposits 651,763 651,763
Operating lease right-of-use
asset, net 2,536,535 3,240,017
------------ ------------
Total assets $ 59,749,086 $ 57,441,666
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Trade and other payables $ 14,872,949 $ 32,077,138
Current portion of operating
lease liability 1,549,575 1,402,826
Current portion of finance
lease liability 4,713 176,707
Revolving line of credit and
current portion of long-term
loans 30,050,174 25,184,363
------------ ------------
Total current liabilities 46,477,411 58,841,034
Operating lease liability, net of
current portion 826,997 1,718,423
------------ ------------
Total liabilities 47,304,408 60,559,457
------------ ------------
Commitments and Contingencies
Stockholders' equity (deficit):
Series D Convertible Preferred
Stock, par value $0.001 per
share, 100,000 shares
authorized, 16,700 and 0
shares issued and outstanding
as of June 30, 2026 and
December 31, 2025,
respectively 17 -
Common stock, $0.001 par value
per share; 90,000,000 shares
authorized, 5,648,751 and
3,617,221 shares issued and
outstanding as of June 30,
2026 and December 31, 2025,
respectively 5,649 3,617
Additional paid-in capital 271,277,557 248,967,877
Accumulated other comprehensive
income 382,127 365,450
Accumulated deficit (259,220,672) (252,454,735)
------------ ------------
Total stockholders' equity
(deficit) 12,444,678 (3,117,791)
------------ ------------
Total liabilities and
stockholders' equity (deficit) $ 59,749,086 $ 57,441,666
============ ============
Big Digital Energy, Inc. Condensed Statements of Operations
(Unaudited)
For the three months For the six months ended
ended June 30, June 30,
------------------------- --------------------------
2026 2025 2026 2025
----------- ----------- ------------ -----------
Revenues:
Digital colocation revenue $ 3,505,814 $ 3,660,298 $ 7,016,843 $14,089,171
Energy management revenue 2,613,936 5,130,712 3,803,790 8,195,587
Digital assets mining
revenue 33,469 742,173 152,889 1,062,798
---------- ---------- ----------- ----------
Total revenues 6,153,219 9,533,183 10,973,522 23,347,556
Less: Cost of revenues
(excluding depreciation) 4,544,735 5,599,553 8,358,544 13,489,996
---------- ---------- ----------- ----------
Gross Profit 1,608,484 3,933,630 2,614,978 9,857,560
---------- ---------- ----------- ----------
Selling, general and
administrative 6,027,299 5,925,308 13,645,437 11,703,716
Stock based compensation 677,043 978,261 1,103,405 3,078,765
Depreciation and
amortization 1,097,390 1,466,119 2,291,654 2,994,032
Change in fair value of
derivative asset 105,608 2,137,052 24,580 (1,922,521)
---------- ---------- ----------- ----------
Total operating expenses 7,907,340 10,506,740 17,065,076 15,853,992
---------- ---------- ----------- ----------
Loss from operations (6,298,856) (6,573,110) (14,450,098) (5,996,432)
Non-operating income
(expense):
Loss on foreign currency
transactions (36,994) (689,952) (401,425) (777,290)
Gain on legal settlements - - 10,157,593 -
Interest expense (1,011,808) (827,336) (1,967,906) (1,612,201)
Other income 8,933 60,646 65,381 164,758
Other expenses (7,095) (9,614) (7,095) (18,955)
---------- ---------- ----------- ----------
Total non-operating income
(expense), net (1,046,964) (1,466,256) 7,846,548 (2,243,688)
---------- ---------- ----------- ----------
Loss before income taxes (7,345,820) (8,039,366) (6,603,550) (8,240,120)
Income tax benefit
(expense) (29,920) 17,933 (162,387) (92,176)
---------- ---------- ----------- ----------
Net loss $(7,375,740) $(8,021,433) $ (6,765,937) $(8,332,296)
========== ========== =========== ==========
Net Loss per share, basic and
diluted $ (1.33) $ (7.93) $ (1.30) $ (8.54)
========== ========== =========== ==========
Weighted average number of
shares outstanding 5,555,868 1,011,630 5,215,344 975,823
========== ========== =========== ==========
Big Digital Energy, Inc. Condensed Statements of Cash
Flows (Unaudited)
For the six months ended
June 30,
--------------------------
2026 2025
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (6,765,937) $(8,332,296)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 2,291,654 2,994,032
Amortization of operating lease
right-of-use asset 701,201 627,398
Foreign exchange loss 422,827 743,835
Stock based compensation 1,103,405 3,078,765
Non-cash interest expense 1,959,660 1,597,880
Unrealized (gain) loss on
derivative asset 24,580 (1,922,521)
Loss on lease termination 2,281 26,367
Provision for doubtful accounts - 977,755
Gain on legal settlements (10,157,593) -
Changes in operating assets and
liabilities:
Trade and other receivables 200,702 2,267,735
Operating lease liabilities (736,461) (660,996)
Other current assets (2,454,896) 934,392
Trade and other payables (7,046,597) (4,921,330)
----------- ----------
Net cash used in operating activities (20,455,174) (2,588,984)
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (22,273) (54,633)
Purchases of property, plant and
equipment (31,652) -
----------- ----------
Net cash used in investing activities (53,925) (54,633)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common share
issuances 7,180,124 -
Payments of finance lease
liabilities (180,208) (206,588)
Proceeds from Series D Convertible
Stock, net of share issuance
cost 14,028,200 -
Proceeds from borrowings 2,500,000 -
----------- ----------
Net cash provided by (used in)
financing activities 23,528,116 (206,588)
----------- ----------
Net increase (decrease) in cash and
cash equivalents 3,019,017 (2,850,205)
Cash and cash equivalents at
beginning of period 13,271,256 6,089,837
----------- ----------
Cash and cash equivalents at end of
period $ 16,290,273 $ 3,239,632
=========== ==========
Supplemental disclosure of cash flow
information
Cash paid for interest $ 8,247 $ 14,321
Cash paid (received) for income taxes
-- Federal $ 358,000 $ (25,905)
Cash paid for income taxes -- State $ 286,375 $ -
Non-GAAP Financial Measures
Adjusted EBITDA
In addition to net loss and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") to monitor the financial health of our business. Adjusted EBITDA is defined as net loss, excluding (i) interest expense, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) share-based compensation, (v) remeasurement gains and losses such as fair value remeasurements on our digital assets, convertible notes, and SAFE notes, and (vi) impairments, restructuring charges, and business acquisition- or disposition-related expenses that we believe are not indicative of our core operating results. This non-GAAP financial information has limitations as an analytical tool when assessing our operating performance, is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and/or render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of core operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net loss:
For the three months
ended For the six months ended
June 30, June 30,
------------------------- --------------------------
2026 2025 2026 2025
----------- ----------- ------------ -----------
Reconciliation
of non-GAAP
Adjusted
EBITDA:
Net loss: $(7,375,740) $(8,021,433) $ (6,765,937) $(8,332,296)
Depreciation and
amortization 1,097,390 1,466,119 2,291,654 2,994,032
Stock based
compensation 677,043 978,261 1,103,405 3,078,765
Losses on
foreign
currency
transactions 36,994 689,952 401,425 777,290
Other
non-operating
income (8,933) (60,646) (65,381) (164,758)
Other
non-operating
expenses 1,018,903 836,950 1,975,001 1,631,156
Change in fair
value of
derivative
asset 105,608 2,137,052 24,580 (1,922,521)
Income tax
(benefit)
expense 29,920 (17,933) 162,387 92,176
Provision for
doubtful
accounts - - - 977,755
Gain on legal
settlements - - (10,157,593) -
---------- ---------- ----------- ----------
Adjusted EBITDA
(non-GAAP) $(4,418,815) $(1,991,678) $(11,030,459) $ (868,401)
========== ========== =========== ==========
CONTACT
Investor Relations: IR@bigdigital.energy
Partnerships: Partnerships@bigdigital.energy
Media and Press: mediarelations@bigdigital.energy
Website: www.bigdigital.energy