PowerCompute, Inc. (NASDAQ:PWCM), a Bitcoin mining and power infrastructure company formerly known as LM Funding America, Inc., reported a 35.8% year-over-year increase in Bitcoin production during the third quarter of 2026, alongside lower revenue, improved mining margins and a return to reported net profitability.

The company produced 23.9 Bitcoin during the three months ended September 30, 2026, compared with approximately 17.6 Bitcoin in the corresponding period of 2025.

PowerCompute also reported a reduction in secured debt following the repayment of its Bitcoin-backed credit facility and announced the purchase of additional mining equipment intended to increase its computing capacity.

How Did PowerCompute Perform in the Third Quarter of 2026?

PowerCompute reported total third-quarter revenue of $1.9 million, compared with $2.2 million during the same period a year earlier.

The decline occurred despite the increase in Bitcoin production, which reached 23.9 Bitcoin, representing year-over-year growth of 35.8%.

The company attributed the lower revenue to a reduction in the average value of each Bitcoin mined during the reporting period.

According to PowerCompute, the average value declined 37.5% to approximately $71,400 per Bitcoin, compared with approximately $114,200 a year earlier.

The figures indicate that increased mining output was insufficient to offset the effect of the lower average Bitcoin value on reported revenue.

However, PowerCompute reported an improvement in mining margin, which increased to 50.7% from 29.0% in the second quarter of 2026.

The sequential increase reflected a change in the relationship between mining revenue and associated operating costs.

Why Did PowerCompute Return to Net Profitability?

PowerCompute reported net income attributable to common shareholders of approximately $0.4 million for the third quarter, equivalent to $0.20 per basic and diluted share.

This compared with a net loss of approximately $4.1 million during the third quarter of 2025.

The change in reported profitability included the effect of non-operating financial items associated with the company's digital assets and financing arrangements.

PowerCompute recorded a fair value gain of approximately $6.7 million on digital assets receivable connected with Bitcoin held under a credit facility that has since been repaid.

The gain was partially offset by a loan derivative loss of approximately $4.4 million.

These accounting items contributed to the company's reported net income and should be distinguished from the financial performance of its underlying Bitcoin mining operations.

The results therefore reflected both an improvement in mining margins and the effect of changes in the valuation of financial assets and liabilities.

How Much Debt Did PowerCompute Repay During the Quarter?

On September 24, 2026, PowerCompute repaid and terminated its Bitcoin-backed credit facility.

Following the transaction, the company's secured debt declined from approximately $19.4 million to $1.25 million.

PowerCompute also confirmed that it no longer had Bitcoin pledged as collateral under the terminated financing arrangement.

The company estimated annual interest expense on its remaining secured debt at approximately $138,000.

Total liabilities decreased to approximately $3.7 million at September 30, 2026, compared with $21.6 million at June 30, 2026.

The reduction in debt and liabilities changed the company's balance sheet position and lowered its ongoing secured borrowing obligations.

The termination of the Bitcoin-backed facility also removed the associated collateral requirements, leaving the company's Bitcoin holdings unpledged under that arrangement.

Why Is PowerCompute Purchasing Additional Bitcoin Miners?

PowerCompute announced that it purchased 600 Bitmain Antminer S21++ mining machines in November 2026 for approximately $1.0 million in cash.

The company expects the equipment to be delivered in late November and deployed at its mining facility in Columbus, Mississippi, by mid-December 2026.

The additional machines are expected to increase PowerCompute's active hashrate by approximately 80 to 85 petahashes per second (PH/s).

This would represent an increase of approximately 10%, bringing total active hashrate to around 880 PH/s.

Hashrate measures the computational processing capacity used in Bitcoin mining. Increasing hashrate can expand a mining company's capacity to participate in the network's transaction validation process, although actual Bitcoin production also depends on network difficulty and other operating factors.

The planned deployment represents an expansion of PowerCompute's mining infrastructure following its third-quarter production increase.

The company has not provided a specific forecast for additional Bitcoin production or revenue attributable to the new equipment.

What Was PowerCompute's Liquidity Position at September 30?

PowerCompute reported holdings of approximately 63.8 Bitcoin at September 30, 2026, with an estimated value of $5.3 million.

The company reported total liquidity of approximately $6.0 million, including approximately $0.7 million in cash and marketable securities.

Its Bitcoin holdings represented a substantial component of the reported liquidity position.

The value of those holdings remains subject to changes in Bitcoin market prices.

PowerCompute's financial position at the end of the quarter also reflected the repayment of its Bitcoin-backed credit facility and the associated reduction in secured liabilities.

The subsequent $1.0 million purchase of additional mining equipment represents a further use of cash after the reporting date.

What Are Investors Watching Next for PowerCompute?

PowerCompute's third-quarter results showed higher Bitcoin production, improved sequential mining margins and a return to reported net income, despite a decline in total revenue.

Investors will be monitoring whether the company completes the installation of its 600 additional mining machines by mid-December 2026 and achieves the anticipated increase in active hashrate to approximately 880 PH/s.

The effect of the expanded mining capacity on future Bitcoin production, operating costs and revenue will also be relevant to subsequent financial results.

Further attention will focus on the company's liquidity position, remaining secured debt obligations and the value of its Bitcoin holdings.

PowerCompute's latest financial update highlighted changes in both its mining operations and capital structure, while the planned equipment deployment establishes an additional operational milestone for the final quarter of 2026.

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