Executive Summary

Q2 2025 revenue was $3.02M, down 36% year over year (Q2 2024: $4.67M) but up sequentially from Q1 2025 ($2.82M); net income turned positive to $1.67M, reflecting continued cost discipline and investment gains .
EPS beat consensus sharply: Actual diluted EPS was $0.06 versus Wall Street consensus of -$0.11, while revenue modestly missed ($3.02M vs. $3.38M); single-analyst coverage limits confidence but the positive surprise on profitability is notable (estimates from S&P Global)* .
Operating expenses fell 46% YoY to $5.65M, the lowest quarterly operating expense since early 2022, as management continued to exit high-cost hosting and decommission older rigs .
Management reiterated a focus on strengthening foundations, managing costs, and scaling with discipline amid post-halving mining economics; near-term stock catalysts include further opex reductions, vertical integration progress, and potential production normalization as transitions complete .

What Went Well and What Went Wrong

Returned to profitability: Net income of $1.67M in Q2 2025 vs. a $8.79M loss in Q1 2025, driven by lower operating costs and investment gains .
Cost discipline: Operating costs and expenses dropped 46% YoY to $5.65M, with management stating it was the lowest quarterly operating expenses since the beginning of 2022 .
Strategic clarity: “Our strategy remains unchanged—strengthen our foundation, manage costs, and build a business that performs across cycles,” said Interim CEO Kurt Kalbfleisch, emphasizing disciplined scaling amid steadier market conditions .

Revenue and production headwinds: Revenue fell to $3.02M from $4.67M YoY, with BTC production down to 30.9 vs. 70.7 in Q2 2024 due to weaker post-halving economics, hosting transitions, and decommissioning older equipment .
Sequential investment gains moderated: Q2 investment gain of $4.31M was below Q2 2024’s $7.79M, limiting upside on the income line versus prior-year quarter .
Limited scale during transition: Self-mined BTC balance was 20.5 ($2.2M fair value) at quarter-end, underscoring constrained production capacity during hosting changes and equipment refresh .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$4.666	$2.817	$3.018
Bitcoin Production (BTC)	70.7	30.5	30.9
Operating Costs & Expenses ($USD Millions)	$10.377	$8.005	$5.645
Loss from Operations ($USD Millions)	$(5.711)	$(5.188)	$(2.627)
Investment Gain/Loss ($USD Millions)	$7.791	$(3.650)	$4.309
Net Income ($USD Millions)	$2.124	$(8.785)	$1.667
Basic EPS ($USD)	$0.11	$(0.32)	$0.06
Diluted EPS ($USD)	$0.10	$(0.32)	$0.06

Vs. Estimates (S&P Global):

Metric	Consensus Estimate*	Actual	Surprise
Revenue ($USD)	$3.376M*	$3.018M	Miss: $(0.358)M*
EPS ($USD)	$(0.11)*	$0.06	Beat: +$0.17*

Segment Breakdown (reported):

Segment	Q2 2025 Revenue ($USD Millions)
Bitcoin Mining	$3.018

KPIs and Balance Sheet Highlights:

KPI	Q4 2024	Q1 2025	Q2 2025
Self-mined BTC Balance (BTC)	14.9	22.7	20.5
BTC Fair Value ($USD Millions)	$1.394	$1.873	$2.200
Cash & Cash Equivalents ($USD Millions)	$5.425	$2.787	$4.703
Shareholders’ Equity ($USD Millions)	$39.315	$30.706	$32.708
Total Assets ($USD Millions)	$43.228	$34.275	$34.418

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	Q3/FY 2025	—	—	Not provided in press releases

Note: No quantitative guidance ranges were disclosed in the Q2 2025 or prior press releases reviewed .

Note: No Q2 2025 earnings call transcript was found; analysis reflects press releases and 8-Ks.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Hosting/Vertical Integration	Transition to vertical integration with Iowa site energized; exit high-cost hosting; Rebel settlement; Simple Mining to operate site	Continued transition away from high-cost hosting; decommissioning older equipment	Integration progressing; near-term production impact persists
Cost Discipline	SG&A streamlining in 2024; ongoing opex control	Lowest quarterly opex since early 2022; opex down 46% YoY	Strengthening; supportive of profitability
Post-Halving Economics	Halving headwinds noted in 2024	Weaker post-halving economics cited for lower revenue/production	Ongoing macro headwind
Legal/Regulatory	Gryphon litigation settled; Rebel termination favorably settled	No new legal disclosures in Q2 PR	Risk reduced vs. prior periods
Equipment Upgrades	Replaced ~25% miners with newer generation rigs in Q4 2024	Decommissioning older rigs, replacing with newer generation machines	Upgrade cycle continuing

“Our strategy remains unchanged—strengthen our foundation, manage costs, and build a business that performs across cycles. As Bitcoin adoption continues to expand over the long term, we are committed to scaling with discipline and positioning the Company to capture that growth.” — Interim CEO Kurt Kalbfleisch .
Q1 framing on taking control of operations and reducing third-party reliance to improve cash flow and durability across cycles, with SG&A reductions and disciplined scaling .
Execution focus: exiting high-cost hosting, energizing a company-managed site, and replacing older rigs with newer generation machines to structurally improve economics .

No Q2 2025 earnings call transcript located; no Q&A themes available based on primary sources reviewed. Management’s narrative in press releases emphasizes cost discipline, hosting transition completion, and equipment upgrades .

EPS beat: Actual diluted EPS $0.06 vs. consensus -$0.11, driven by reduced operating costs and positive investment gains (S&P Global)* .
Revenue miss: Actual $3.02M vs. consensus $3.38M, reflecting lower BTC production from post-halving economics and hosting transitions (S&P Global)* .
Coverage depth: Single estimate for both EPS and revenue, limiting precision of consensus (S&P Global)*.
Implication: Models likely raise profitability assumptions tied to opex, while trimming near-term production/revenue until transitions complete (S&P Global)* .

Values retrieved from S&P Global*.

Positive inflection in profitability amid volume headwinds: Net income of $1.67M with diluted EPS $0.06 despite lower BTC production and revenue .
Cost actions are working: Operating costs down 46% YoY and at multi-year lows, supporting margin resilience through volatile mining cycles .
Production likely normalizes as transitions complete: Hosting exits and equipment refresh depressed output; management expects disciplined scaling as newer generation machines come online .
Estimate dynamics: Expect upward revisions to EPS and potential downward tweaks to near-term revenue/production until integration/upgrade cycle stabilizes (S&P Global)* .
Liquidity steady with improved equity base: Cash $4.70M, BTC fair value $2.20M, shareholders’ equity $32.71M at quarter-end, providing runway for integration and upgrades .
Strategic focus consistent: Management is prioritizing foundational strength and cost control over aggressive capacity additions—favorable for risk management in post-halving conditions .
Trading lens: Near-term catalysts include further opex reductions, signs of production rebound at refreshed sites, and additional operational updates; watch for any guidance initiation or operational KPIs in future releases .