Bitzero Holdings Inc. (AIBZ) Q3 2026 Earnings: Revenue $11M (+65.5%)
AIBZ — Q3 FY2026 Financial Report Analysis
Q3 · Fiscal year 2026 · Published by Pham Hop
Bitzero's fiscal Q3 revenue rose 65.5% to $10.7M on more bitcoin mined and flat power costs, but leased machines paid in bitcoin, a $13.3M warrant revaluation loss and stock pay pushed the net loss to $26.5M, under a going-concern warning.
Revenue
$11M
+65.5% YoY
Net income
-$26M
-243.2% YoY
Diluted EPS
$-0.48
-140.0% YoY
Operating margin
-41.7%
This period vs a year ago
Same period last year
This period
Revenue▲+65.5%
≈$6.4M
$11M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
Bitzero Holdings is a Vancouver-headquartered Bitcoin miner. Almost all of its revenue comes from one hydro-powered data centre at Namsskogan, Norway, run by its subsidiary Exanorth AS. It also owns development land and infrastructure in North Dakota and is building capacity in Finland. The company became public through a reverse takeover of WBM Capital Corp. in November 2025, meaning the private company merged into an existing listed shell. Its shares began trading on Nasdaq on June 9, 2026. Bitzero files in Canada under IFRS (the international accounting standards) and reports in US dollars. Its fiscal year ends September 30, so the three months to June 30, 2026 are its fiscal Q3 2026.
Revenue roughly doubled from the previous quarter, but net loss more than tripled from a year earlier to $26.5 million. Most of that loss did not come from mining. It came from accounting charges on the company's own warrants, which rose in value as the share price climbed, and from stock-based pay. The mining business is closer to break-even than the net loss suggests. Even so, it did not earn its keep this quarter: rented mining machines cost more than the extra revenue they brought in, and the going-concern warning in its financial statements stays in place.
At a glance
Revenue $10.7 million, up 65.5% year on year and about double the March quarter ($5.3 million). The company mined about 149.9 BTC in the quarter. That growth came mainly from extra mining capacity, including rented machines.
Net loss $26.5 million, versus $7.7 million a year ago. $13.3 million of it is a non-cash loss on warrants and conversion rights, and $4.9 million is stock-based pay. Neither involves cash leaving the business this quarter.
Cash and cash held in trust were $2.9 million against $38.3 million of current liabilities, the bills and debts due within a year. The company says there is a "material uncertainty" about whether it can continue as a going concern. After the quarter ended it raised $24.8 million gross and used most of it to repay its $22.4 million secured loan.
The quarter in numbers
Metric
Q3 FY2026 (Apr–Jun 2026)
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Q3 FY2025 (Apr–Jun 2025)
YoY Change
Revenue
$10.65M
$6.43M
+65.5%
Direct costs
$12.41M
$6.93M
+79.2%
Gross profit (loss)
($1.76M)
($0.49M)
loss widened
Operating loss before other items
($4.45M)
($2.27M)
loss widened
Operating margin
-41.7%
-35.3%
-6.4 pts
Net loss
($26.46M)
($7.71M)
-243.2% (loss widened)
Loss per share (basic and diluted)
($0.48)
($0.20)
-140.0% (loss widened)
Adjusted EBITDA (company measure)
$3.14M
$1.63M
+92.7%
Utilities and grid services
$3.91M
$3.92M
flat
Utilities as % of revenue
36.7%
60.9%
-24.2 pts
BTC mined
~149.9
not disclosed
—
Installed hashrate (June 30)
~1.85 EH/s
not disclosed
—
Operating margin is the operating loss before other items divided by revenue. It is the share of each revenue dollar left, here lost, after running the business and before financing items and valuation changes. Adjusted EBITDA is the company's own non-IFRS measure; see below for what it leaves out.
Over nine months, revenue rose 34.5% to $23.5 million and the net loss was $39.4 million, against $14.7 million a year earlier. The company mined 291.53 BTC in the nine months. Average revenue per bitcoin mined fell to about $80,500 from about $93,200 a year earlier. In the June quarter alone, revenue of $10.65 million over roughly 149.9 BTC works out to about $71,000 per coin. That was well below the $103,500 Bitcoin price assumed in the forecast Bitzero published at its November 2025 listing.
Where the revenue came from, and what it cost
Mining economics come down to three things: how many coins you produce, what each coin sells for, and what it costs to run the machines. In this quarter the three moved in different directions.
Production up. The company credits the revenue jump to "higher Bitcoin production (approximately 149.89 BTC mined) and mining capacity, partially offset by a lower realized Bitcoin price." The June 30 site had 39 containers, 16,130 miners and about 1.85 EH/s installed. EH/s, or exahashes per second, measures how much computing power the fleet points at the Bitcoin network.
Power costs flat. This is the notable positive. Utilities and grid services were $3.91 million, essentially the same as a year earlier's $3.92 million, even though revenue rose 65%. Power therefore fell from 61% of revenue to 37%. Over nine months utilities actually fell, to $8.4 million from $9.0 million. The Norway site runs on hydroelectric power in the NO4 price zone. Exanorth also has a financial contract with the utility Fortum that fixes the price on 10 MW of power at EUR 17.50 per megawatt-hour. That contract produced a $1.2 million gain over the nine months, so it partly protects the company against higher power prices.
Rented machines cost more than they added. Direct costs rose 79% to $12.4 million, and almost all of the increase is one line: $5.8 million of "depreciation of right-of-use assets." In plain terms, Bitzero leased hosted mining equipment to lift production. Under IFRS, a lease shows up as an asset that is written down over the lease term. These leases were written down in full within the quarter, and the $5.9 million owed on them was paid in bitcoin. The MD&A draws the link directly: "the company entered into an ROU arrangement to help increase BTC mining production, resulting in increased mined revenue." Revenue rose by $4.2 million year on year, while this one cost line rose by $5.8 million. That is why the gross loss widened to $1.8 million.
Operating expenses rose to $2.7 million from $1.8 million, for three reasons. Administrative costs rose to $1.2 million from $1.0 million because of legal, consulting, travel and insurance costs as a newly Nasdaq-listed company. Finance costs rose to $1.0 million from $0.6 million because of interest on the JGB secured loan, first drawn in August 2025. Marketing rose to $0.5 million from $0.1 million because of "investor-awareness and capital-markets activities".
What the headline numbers hide
1. The $26.5 million loss is mostly non-cash, but the business still lost money. Below operating loss, "other items" added $22.0 million of expense:
Other item, Q3 FY2026
Amount
Loss on derivative financial instruments (warrants, conversion options)
The derivative loss is a quirk of the accounting. Some of Bitzero's warrants and conversion rights have terms that could require it to issue a variable number of shares. IFRS therefore records them as liabilities marked to market every quarter. When the share price rises, those liabilities grow and the company books a loss. The share price used in the valuation went from $4.00 at grant to $6.76 on June 30. The JGB warrants, with a $0.10 exercise price, were valued at about $6.69 each. The foreign-exchange loss comes from remeasuring US-dollar balances owed between group companies at the Norwegian subsidiary, whose books are kept in Norwegian krone. None of these items is operating performance. The operating loss of $4.4 million is, though, and it roughly doubled.
2. Adjusted EBITDA flatters the mining business. The company reports Adjusted EBITDA of $3.1 million, a 29.4% margin, up from $1.6 million. EBITDA means earnings before interest, tax, depreciation and amortization. The measure adds back all $8.3 million of depreciation and amortization. That includes the $5.8 million charge for the leased mining machines, which was settled in bitcoin the company would otherwise have held or sold. If that lease cost is treated as the operating expense it effectively was, the quarter's adjusted figure falls to roughly -$2.7 million. That is our calculation, not a company figure.
3. Operating cash flow looks worse than it is, and cash burn is driven by building work. Operating activities used $18.3 million over nine months, but the line is distorted. IFRS treats mined bitcoin as non-cash until it is sold, and bitcoin sales ($16.6 million) sit under investing. Taken together, mining and coin sales used about $1.7 million. Capital spending of $12.1 million, mostly the Finland build, is what drove the burn. It was paid for with $8.0 million of new secured loans, $3.9 million of convertible notes and $2.9 million of share and warrant issuance, less $2.3 million of loan repayments. Prepaids also rose $6.5 million, mostly $5.9 million paid in advance for power transformers bought from FAR Holdings.
4. Heavy dilution. The average share count used in per-share figures was 55.1 million, up 39.7% from 39.5 million a year earlier. The July 2026 financing adds 5.83 million special warrants at $4.25. Each one converts into one share plus one five-year warrant at $5.00, so it could add up to 11.7 million more shares. Stock-based expense was $20.0 million over nine months. About $7.1 million of that related to the reverse takeover. Key management received $7.3 million of share-based compensation in the nine months.
5. Balance-sheet stretch and a going-concern warning. On June 30 the company had $13.0 million of current assets against $38.3 million of current liabilities, a $25.3 million working-capital deficit. Equity fell to $6.6 million from $12.9 million. It held 41.03 BTC, worth $2.5 million. Separately, it must deliver 26 BTC to FAR Holdings by March 16, 2027 under a bitcoin financing. After the quarter it raised $24.8 million gross (July 30) and repaid the JGB loan in full on August 6: $22.375 million of principal plus interest. That removed the lender's security over the company's assets and released $2.0 million of restricted cash. The repayment used most of the raise, and the company says these steps "do not eliminate the Company's dependence on achieving operating plans and obtaining financing when required."
6. Restated filings and limited control sign-offs. On September 9, 2026, after a review by the British Columbia Securities Commission, Bitzero amended and refiled its FY2025 annual statements and these Q3 statements. The change reclassified the JGB warrants as a $7.7 million current derivative liability at September 30, 2025. Net loss, total liabilities and equity did not change, but the restated September 2025 working-capital deficit grew to $14.1 million from $6.4 million. The refiling also corrected nine-month cash-flow lines: operating cash use fell to $18.3 million from $22.6 million, and bitcoin-sale proceeds to $16.6 million from $22.5 million. The difference reflects 78.73 BTC used to pay for services instead of being sold. The figures here use the amended version. Because this is its first period as a non-venture issuer, the CEO and CFO did not certify the design or effectiveness of disclosure controls or internal control over financial reporting. The company also has an unresolved legal dispute with its former CEO over a $1.8 million convertible loan.
Takeaway: Bitzero's power costs held flat while revenue rose 65%. Its cheap Norwegian hydro is doing its job. But the extra production came from leased machines whose $5.8 million cost, paid in bitcoin, exceeded the revenue they added. At about $71,000 per coin the mine lost money before any warrant or stock-pay charges. The equity raise went mainly to paying off debt, not to building a cash cushion.
Outlook
Bitzero gives no revenue or production guidance. Management's stated priorities are:
improving energy efficiency and hashrate per MW;
advancing hosting deals;
optimizing grid-flexibility opportunities in Norway;
completing the Finland development "in a disciplined manner";
"preserve liquidity."
The update to its listing forecast gives a partial read. For the fiscal year to September 30, 2026, management now expects $32.75 million of Bitcoin mining revenue, 16.6% below the original $39.3 million, and $8.1 million of general and administrative expense, 86.7% above the $4.4 million forecast. With $23.5 million booked in the first nine months, that implies about $9.3 million in the September quarter, below Q3's $10.65 million. That figure is our arithmetic from the company's estimate. The comparable forecast-basis net cash flow is now $7.0 million, 43.7% below the original $12.5 million.
The larger strategic question is the OneQode letter of intent, announced May 5, 2026. It proposes a 15-year lease of the Norway facility, with deployment targeted for 2027. As of the September 9 MD&A the letter was still in effect and definitive documents were still being negotiated. If signed, it would move the site from mining revenue, which depends on the Bitcoin price, toward contracted lease income. Until then, results remain tied to the Bitcoin price, network difficulty and power costs. In September the company also filed a US$200 million base shelf prospectus in Canada and an effective US Form F-10 registration statement, which lets it sell new shares when needed.
Things to watch in the FY2026 annual results, due around late December 2026:
Whether the hosted-equipment leases continued, and whether revenue per bitcoin mined covered their cost.
Cash on hand once the JGB repayment and Finland spending are reflected.
Whether the OneQode lease reaches a signed contract.
Whether the going-concern warning is kept or removed.