Ionic gets 90% of Q2 revenue from AI lease; $35M Bitcoin loss

Ionic Digital reported that $43.8 million of its $48.6 million in second-quarter revenue came from leasing its Ward County power site to AI infrastructure provider Nscale. Bitcoin mining operations accounted for the remaining $4.8 million. A $28.2 million noncash fair value loss on Bitcoin holdings contributed to a $35.3 million GAAP net loss for the quarter.

The company recognized lease revenue on a straight-line basis in the quarter even though scheduled base rent under the contract did not begin until Aug. 1. The Ward County operating lease started Dec. 19, 2025, and Nscale paid a $45.6 million advance in November 2025.

Under the contract, monthly base rent for the existing 234 megawatts is set at $3.25 million for August and September, $6.5 million for October and November, and $9.75 million for December and January before reaching the full required-capacity rate. An 89-megawatt expansion was not available in Q2; its $5.8 million monthly rent will begin once that capacity is delivered. Because Ionic recorded lease revenue before recurring base rent began, cash collected in Q2 differs from reported revenue.

Ionic recorded a $28.2 million noncash remeasurement charge on its Bitcoin inventory in Q2 and reported no realized gains or losses from crypto sales. The company held 2,882 BTC valued at $168.7 million as of June 30. Adjusted EBITDA was $37.6 million after management added back the crypto mark, a $27.2 million tax provision, depreciation, stock-based compensation and other items.

The company changed its non-GAAP operating measure to exclude both realized and unrealized crypto gains and losses and recast prior periods to match the new presentation. The filing states the revised measure reflects management’s view of operating performance while GAAP results remain sensitive to Bitcoin price changes.

Deferred digital infrastructure leasing revenue declined by $39.8 million in the first half. Current other receivables totaled $49.0 million at June 30; the filing did not break down that category. Ionic began 2026 with $43.5 million in cash, received $400 million in financing proceeds, used $25.9 million in operating cash flow and $1.8 million in investing cash flow, and finished the half-year with $415.7 million in cash and no outstanding borrowings.

Recurring cash rent from the Ward County lease started after the end of Q2. The filing documents timing differences between recognized lease revenue and cash collections.