Ionic Digital IOND

Ionic Digital Inc. is a digital infrastructure solutions and cryptocurrency mining company. The company focuses on monetizing its portfolio of powered digital infrastructure assets, primarily through leasing facilities for high-performance computing and artificial intelligence applications, as well as bitcoin mining operations. Ionic Digital began as a pure-play cryptocurrency mining company upon formation in January 2024 to acquire mining assets from Celsius Mining. The company operates across Texas with owned and leased facilities designed for energy-intensive computing workloads.

Ionic Digital generates revenue through two primary streams: long-term lease agreements for digital infrastructure and bitcoin mining activities. The company’s flagship revenue source is the Nscale Agreement, a 126-month triple-net lease for its Ward County property, which provides approximately $1.95 billion in contracted revenue over the initial term, with potential to increase to $2.6 billion if additional capacity is secured. Ionic Digital also earns revenue from mining bitcoin and selling the cryptocurrency, having generated $101.5 million in gross proceeds from bitcoin sales during the year ended December 31, 2025. Revenue is derived from fixed lease payments with hyperscalers and enterprise customers, as well as the sale of mined bitcoin to cover operational and capital expenditures.

The company operates through the following segments: Digital Infrastructure Solutions and Cryptocurrency Mining.

• Digital Infrastructure Solutions: This segment involves leasing powered digital infrastructure assets to hyperscalers, enterprise customers, and other businesses for high-performance computing and artificial intelligence cloud infrastructure. The segment’s primary asset is the Ward County property in West Texas, which is leased to Nscale under a 126-month triple-net agreement for use as a hyperscale AI campus. The Ward County property currently provides 234 megawatts of critical IT load, with contractual obligations for Nscale’s AI infrastructure, and the agreement includes an option for an additional 89 megawatts when capacity becomes available. Ionic Digital has granted Nscale a right of first refusal on any additional power capacity that may become available at the Ward County property.
• Cryptocurrency Mining: This segment comprises the company’s bitcoin mining operations across owned and leased facilities in Texas, including the Rebel, Stiles, East Stiles, and Garden City sites in Midland, as well as previously hosted locations. As of March 31, 2026, Ionic Digital owned approximately 120,600 miners with an aggregate potential hashrate capacity of 12.2 EH/s, of which active miners contributed 2.0 EH/s to mining pools. The company participates in bitcoin-only mining pools using FPPS payout structures and has sold bitcoin to generate revenue, including 1,009.0 bitcoin at an average price of $100,547 during the year ended December 31, 2025. Ionic Digital maintains custody arrangements with Anchorage Digital Bank and Fidelity Digital Assets to secure its bitcoin holdings.

Ionic Digital is positioned as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure, with a strategic focus on transitioning from pure-play mining to diversified digital infrastructure leasing. The company competes in the digital solutions space against established data center providers such as Digital Realty Trust, TeraWulf Inc., Cipher Mining Inc., and DataDirect Networks, which often have longer operating histories and greater scale. In bitcoin mining, Ionic Digital faces competition from large-scale operators including Marathon Digital Holdings, Riot Platforms, CleanSpark Inc., and Core Scientific Inc., which benefit from greater access to capital and established infrastructure. The company’s competitive advantages include its Ward County site’s potential to scale to 700 megawatts, low-cost power access averaging 2.1 cents per kWh in recent periods, a strong balance sheet with no debt and $192.1 million in bitcoin treasury value as of March 31, 2026, and a management team with experience in data center development and capital markets.

Ionic Digital serves hyperscalers, enterprise customers, and businesses requiring high-performance computing and artificial intelligence infrastructure through its Digital Infrastructure Solutions segment, with Nscale as its primary tenant under the Ward County lease agreement. The company also serves the broader bitcoin network through its Cryptocurrency Mining segment, contributing hashrate to mining pools and earning bitcoin rewards. Specific customer names disclosed in the filing include Nscale, which leases the Ward County property, and Microsoft, which has been granted an option for additional power capacity at the site starting in late 2027. For its mining operations, Ionic Digital indirectly serves the Bitcoin network and its users by validating transactions and securing the blockchain through its contributed hashrate.