Akerna (US:KERN)2026-03-27 10:30Bitcoin Holdings and Mining Operations - As of March 25, 2026, the company accumulated approximately 6,963 Bitcoin in reserve, positioning it among the top 16 publicly traded Bitcoin treasury companies based on total Bitcoin holdings [242]. - The company purchased a total of 28,578 Bitcoin miners, increasing its operational fleet to approximately 59,000 miners, representing approximately 25.0 EH/s at an average efficiency of 14.1 J/TH [242]. - The company operated Bitcoin miners at four sites, with a planned fleet upgrade completed in April 2025 to improve efficiency [254]. - Bitcoin production increased to 1,789 Bitcoin in 2025 from 1,184 Bitcoin in 2024, with average revenue per Bitcoin mined rising to approximately $103,521 [268]. - Bitcoin mined decreased to 1,184 in 2024 from 2,138 in 2023 due to increased network difficulty and the halving event in April 2024 [278]. Financial Performance - Revenue for the year ended December 31, 2025 was $185.2 million, a $113.7 million increase from $71.5 million in 2024, driven by improved mining efficiencies and the deployment of Bitcoin miners [268]. - Revenue increased to $71.5 million in 2024 from $65.0 million in 2023, driven by higher average revenue per Bitcoin mined, which rose to $60,436 from $30,398 [278]. - Adjusted EBITDA for 2025 was $(157.3) million, a decrease of $674.9 million from $517.6 million in 2024, impacted by non-recurring transaction costs [267]. - Loss on digital assets was $227.1 million in 2025, compared to a gain of $509.3 million in 2024, attributed to a decline in Bitcoin prices [272]. - Other income increased to $56.7 million in 2025 from $9.3 million in 2024, driven by a significant gain on derivatives [273]. Costs and Expenses - Cost of revenue increased to $92.0 million in 2025 from $39.5 million in 2024, reflecting higher uptime due to fleet upgrades and new Bitcoin miners [269]. - General and administrative expenses decreased slightly to $33.4 million in 2025 from $34.5 million in 2024, mainly due to lower share-based payments [271]. - Depreciation and amortization expenses rose to $58.2 million in 2025, up $35.5 million from $22.7 million in 2024, primarily due to increased depreciable asset base from fleet upgrades [270]. - Cost of revenue decreased to $39.5 million in 2024 from $43.6 million in 2023, primarily due to relocating mining operations to lower-cost sites [279]. - Depreciation and amortization expense increased to $22.7 million in 2024 from $14.4 million in 2023, driven by the Hut Business Combination [280]. Tax and Cash Flow - Income tax benefit for 2025 was $18.1 million, a $77.7 million increase from a provision of $59.6 million in 2024, primarily due to losses on digital assets [274]. - Income tax provision rose to $59.6 million in 2024 compared to an income tax benefit of $18.8 million in 2023, due to deferred taxes related to Bitcoin holdings [284]. - Net cash used in operating activities was $79.6 million in 2025, compared to $54.0 million in 2024, primarily due to a net loss of $153.2 million [292]. - Net cash used in investing activities totaled $398.3 million in 2025, reflecting significant Bitcoin purchases [293]. - Net cash provided by financing activities was $481.7 million in 2025, primarily from the issuance of Class A common stock [294]. Strategic Developments - The 2025 At-The-Market Offering Program allowed the company to offer and sell up to $2.1 billion of Class A common stock, resulting in gross proceeds of approximately $351.3 million by March 25, 2026 [242]. - The company completed a merger with Gryphon on September 3, 2025, which was accounted for as a reverse acquisition, renaming Gryphon to American Bitcoin Corp [242]. Market Conditions - The current Bitcoin block reward is 3.125 Bitcoin, with the next halving event expected in 2028, which may impact the company's mining revenue [260]. - Power costs are a significant component of the company's mining expenses and can be highly volatile, impacting profitability [261]. - The price of Bitcoin and network difficulty significantly affect the company's revenue and operational results [257][259].