Axe Compute Inc.

For Q1 2026, revenue was $35,000 versus $110,000 in Q1 2025. Net loss was $7.7 million, or $0.36 per share, including a $4.3 million noncash loss on digital assets; excluding that mark-to-market item, management said underlying operating loss was about $3.4 million. Total operating costs and expenses were $3.5 million versus $2.4 million a year ago. Cash and cash equivalents fell to $6.9 million from $10.8 million at December 31, 2025, while digital asset holdings were $20.2 million and digital asset receivable was $15.4 million at March 31, 2026. Management did not give formal next-quarter or full-year financial guidance, but said the $260 million contract is targeted for Q3 2026 deployment and should generate about $21 million per quarter once live; Chris Miglino also said he has publicly said he believes the company can close around $1 billion in transactions this year.

Chris Miglino framed Axe Compute as a partner that helps enterprises get the GPU type, location, and configuration they need, rather than forcing them to work around available data center inventory. He emphasized that the company is building both cash flow and balance-sheet asset value through owned hardware, and said the first large deal has opened a “floodgate” of opportunities. His tone was highly confident and expansionary, repeatedly describing the company as being at the right place at the right time.

Jeremy Yaukey-Witter said the quarter reflected a transitional business mix, with a reported net loss of $7.7 million and $4.3 million of that tied to a noncash mark-to-market loss on Aethir token holdings. He noted total revenue of $35,000, operating costs and expenses of $3.5 million, cash used in operations of $3.7 million, and cash on hand of $6.9 million at quarter-end. He also highlighted $786,000 of contract liabilities, including about $650,000 related to compute services, and said the company had $20.2 million of digital asset holdings and $15.4 million of digital asset receivable, with locked tokens vesting through December 2028.

There was no formal analyst Q&A in the transcript. The main points raised by management were clarifications that the Q1 numbers were not representative of the business going forward, that the large $260 million contract is now actively being built out, and that the pipeline is qualified prospects rather than signed revenue. Management also stressed that the business model uses monthly prepayments and that the first major contract should begin contributing meaningfully once the cluster goes live.