Bitcoin miner Ionic Digital generated 90% of its second-quarter revenue from leasing its power sites for artificial intelligence infrastructure, according to the company's financial filings. However, a significant Bitcoin valuation loss heavily impacted overall earnings.
AI Leasing Drives Revenue
During the second quarter, Ionic Digital recorded $48.6 million in total revenue. Of that amount, $43.8 million came from leasing its Ward County site to AI infrastructure provider Nscale. Traditional Bitcoin mining contributed $4.8 million to the quarter's revenue.
Ionic recognized the lease revenue on a straight-line basis. The company noted that scheduled recurring base rent began after the close of the second quarter, following an advance payment made by Nscale in November.
Bitcoin Valuation Losses Impact Net Income
Despite the strong revenue contribution from AI leasing, Bitcoin price movements shaped the company's broader financial results. Ionic recorded a $28.2 million noncash fair value loss on its Bitcoin holdings due to remeasurement. This charge contributed to a GAAP net loss of $35.3 million for the quarter.
As of June 30, Ionic held 2,882 Bitcoin valued at $168.7 million, with no realized gains or losses from cryptocurrency sales during the period. When adjusting to exclude crypto market fluctuations, tax provisions, depreciation, and other expenses, the company reported an adjusted EBITDA of $37.6 million.
Cash Position and Expansion
Ionic ended the second quarter with $415.7 million in cash and no outstanding borrowings, bolstered by $400 million in financing proceeds. The company used $25.9 million in operations and $1.8 million in investing during the period, starting the year with $43.5 million in cash.
The company's filings highlight an ongoing transition as it repositions power-rich sites to support AI infrastructure, even as its substantial cryptocurrency treasury keeps GAAP earnings sensitive to Bitcoin market prices.
