DTCX — Q2 2026 Financial Report Analysis

Datacentrex Q2 2026: flat revenue, power costs squeezed gross margin to 11%, and the cash pile is now going into an LNG stake

Datacentrex (formerly Thumzup Media) runs about 3,085 crypto-mining machines in rented space at four US data centers. In the quarter to June 30, 2026, revenue was $1.91 million, almost the same as a year earlier ($1.93 million). The cost of running the machines rose 71%, mostly because of higher power rates, so gross profit fell from $0.93 million to $0.21 million. Once a two-year write-down of the mining fleet, stock pay and public-company overhead are added, the net loss was $5.47 million, or $0.14 a share, up from a $1.53 million loss a year earlier. The company has no debt, held $51.9 million of cash at quarter-end and roughly $6.0 million in crypto, and two months later put $30 million of that cash into a liquefied-natural-gas producer.

The quarter in numbers

All figures are from the unaudited Form 10-Q for the quarter ended June 30, 2026. The prior-year figures are those of Dogehash Technologies, the private miner that took over the listed Thumzup Media in a reverse recapitalization on December 15, 2025 (an accounting treatment in which the private company that buys its way into a listing is treated as the continuing business). Dogehash was a members' LLC with units rather than shares, so the filing shows no per-share loss for 2025.

Operating margin is the share of revenue left after all operating costs, before interest and tax; at -250.6%, operating costs were about 3.5 times revenue.

For the first half of 2026, revenue was $4.09 million against $2.09 million in the first half of 2025, nearly double, and the net loss was $11.62 million against $1.84 million. The first-half jump comes almost entirely from the first quarter: Dogehash only started its first fleet of about 1,500 miners in early 2025, so its Q1 2025 revenue was about $0.16 million. Comparing quarter to quarter within 2026, revenue fell about 12% from $2.18 million in Q1 to $1.91 million in Q2, and gross margin fell from about 23.5% to 10.7% (Q1 figures derived from the six-month totals minus Q2).

How the business makes money

Datacentrex owns ASIC miners, single-purpose computers built to run one algorithm, in this case Scrypt. Scrypt machines secure the Litecoin network and, through "merged mining", the Dogecoin network at the same time without extra power. Their output is measured as hashrate (computing work per second); the fleet's nameplate total is about 43.2 TH/s (trillion hashes per second) drawing about 12.5 MW of power.

The filing shows the company now mostly rents this computing power out on a hashrate marketplace instead of mining coins directly. Of the $4.09 million of first-half mining revenue, $3.98 million (97%) was paid in Bitcoin through NiceHash, and only $0.10 million came as Dogecoin. The company was holding 72 Bitcoin at June 30 (up from about 19 at year-end), so although it calls itself a Dogecoin and Litecoin miner, its revenue and its treasury now move mainly with the value of the Scrypt hashrate it sells and the price of Bitcoin.

Revenue was flat year on year, which management attributes to "steady levels of operating activity during both periods". The fleet itself did not change during the quarter: 3,085 miners, "no material additions or removals".

Why the loss widened

• Power and hosting costs: cost of revenue rose $0.71 million, which the 10-Q says "reflects the increased power rates of the Company's deployed mining fleet". The miners sit in third-party colocation sites on the ERCOT (Texas), MISO (Midwest) and Georgia Power grids, with power prices fixed by contract.
• Depreciation: up $1.12 million to $3.29 million, "reflecting the substantially larger in-service mining fleet". Mining equipment cost $26.0 million and is depreciated over two years.
• Stock-based compensation: $0.85 million, against nothing a year earlier, under the equity plans inherited from Thumzup.
• Public-company overhead: general and administrative expense rose from $0.19 million to $0.86 million; the filing points to about $0.25 million more in legal and accounting fees and about $0.36 million more in payroll and consultants.
• Crypto held in treasury lost value: a $1.27 million realized and unrealized loss on digital assets (the 10-Q values them at market price each quarter). Over the half-year, the Bitcoin position lost $1.38 million and the Dogecoin position $0.98 million of fair value. At June 30 the crypto was worth $5.99 million against a cost of $8.85 million.
• Interest income helped: $0.60 million of net interest income on the cash pile, against $0.18 million of interest expense a year earlier when Dogehash had debt.

Takeaway: At Q2 2026 power rates, Datacentrex's miners covered their electricity and hosting bills with about $0.2 million to spare, while the fleet that produces that margin is being written off at $3.3 million a quarter. Interest on cash raised from shareholders ($0.60 million) earned almost three times as much as the mining operation's gross profit ($0.21 million). The business was being carried by its balance sheet, and $30 million of that balance sheet has now gone into an unrelated LNG investment.

What the headline numbers hide

• Revenue is not cash. Mining revenue is paid in crypto, and the company mostly keeps it: of $4.09 million of first-half revenue, only $56,520 of digital assets were sold. Meanwhile power, hosting, salaries and fees are paid in dollars. That is why operating cash flow was -$4.99 million for the half against a net loss of $11.62 million: the gap is mostly non-cash depreciation ($6.57 million) and stock pay ($2.01 million), but the mining revenue itself shows up as a growing crypto balance, not as cash. Cash rose from $38.9 million to $51.9 million only because a March 2026 share offering brought in $17.9 million net.
• Adjusted EBITDA flatters less than usual, but is not "cash earnings". The company's Adjusted EBITDA (net loss with depreciation, stock pay, interest expense and tax added back) was -$1.33 million. It adds back interest expense but keeps the $0.60 million of interest income, and it keeps the $1.27 million crypto mark-down. Strip out both and the mining business on its own was about -$0.66 million for the quarter (gross profit of $0.21 million less $0.86 million of G&A).
• Depreciation will drop, but that is not a margin improvement. With $12.0 million of net equipment value left and about $3.25 million of depreciation a quarter, the current machines will be fully written off around mid-2027. Reported losses would shrink then, but the fleet will be no more productive; the filing itself says miners "have finite useful lives and are subject to technological obsolescence".
• Shareholders were diluted. Common shares outstanding rose from 30.4 million at December 31, 2025 to 39.6 million at June 30, 2026 (+30%), mainly from the March offering of 4.51 million shares plus pre-funded warrants at $2.00 each ($20.2 million gross).
• No one-offs in the operating line, no receivables or inventory build. The balance sheet is simple: no debt, $0.32 million of payables, no inventory. Beyond the crypto mark-down, the only unusual item is a $60,092 impairment of the old Thumzup app software in the first half.
• No guidance. The 10-Q gives no revenue or production outlook.

What happened after the quarter

• New miners, already paid for. On August 24 the company said it had found hosting space for more than 500 ElphaPex DG2 Scrypt miners bought and prepaid in 2025 (the balance sheet carries $3.6 million of equipment deposits). On October 14 it said installation had begun and that, once fully running, they should lift hashrate about 21% to roughly 52.2 TH/s and power use from about 12.5 MW to about 14 MW, with the installed fleet above 3,500 machines.
• $30 million into Eagle LNG. On August 27, 2026 Datacentrex agreed to buy 23,076,923 Class A common units of ELNG Equity LLC, the holding company of Eagle LNG Partners, for about $30 million, closing the next day. The company's press release describes this as a 10.5% stake in a producer of liquefied natural gas, including the methane fuel used by reusable rocket launchers, and says an affiliate of Eagle LNG's controlling sponsor, The Energy & Minerals Group, put in $10 million at the same price per unit. The units are unregistered and subject to transfer restrictions, so this is an illiquid minority investment, outside the mining business the 10-Q describes. The 10-Q had already said management does "not intend to limit our long-term opportunity set to cryptocurrency-related compute".
• Reverse split on the ballot. The proxy for the November 30, 2026 annual meeting asks shareholders to let the board carry out a reverse stock split at any ratio between 1-for-2 and 1-for-25, at its discretion, before November 30, 2027.

Outlook

Management gives no numerical guidance. The things that will decide the third and fourth quarters are visible in the filing:

1. Whether the extra 21% of hashrate earns more than it costs to power. The DG2 machines are newer and, the company says, more energy-efficient than much of the existing fleet, which should help gross margin at a given power price. But in Q2 the existing fleet's gross margin was already down to about 11%, so higher crypto prices or lower network difficulty matter more than fleet size. The company itself pointed to a roughly 32% one-week rise in Dogecoin in August as an improvement in mining economics.
2. Cash runway after the LNG investment. Taking the June 30 cash of $51.9 million less the $30 million paid to Eagle LNG leaves about $21.9 million, before third-quarter spending. First-half operating cash use was about $5.0 million, so at that pace the remaining cash covers roughly two years, plus about $6 million of crypto. The real question is what the company does with it: the 10-Q describes a mandate to pursue acquisitions "within and outside the digital asset ecosystem", and the LNG deal shows management is willing to put more than half its cash into one outside investment.
3. How the Eagle LNG stake is accounted for. The third-quarter 10-Q should show how the $30 million is carried on the balance sheet and whether any income or value change from it flows through results.

Our read: as a mining business, Datacentrex is small and barely covering its running costs, and its reported losses are dominated by a fast write-off of the machines. The share price is more likely to be driven by the cash and what is done with it than by mining output. The Q3 2026 10-Q, expected around mid-November 2026, will be the first to show the LNG investment and the start of the DG2 deployment.