SATO Technologies Corp. Reports Q3 2025 Results and Provides Strategic Update
Rhea-AI Summary
SATO Technologies (OTCQB: CCPUF) reported unaudited Q3 2025 results for the three and nine months ended September 30, 2025. Key metrics: revenue $3.34M (+28% YoY), 21 BTC mined (down 32% YoY), gross profit $381,566 vs. a gross loss in Q3 2024, net loss $(284,424) (improved), Compute Power Profit $921,602, Adjusted EBITDA $333,505, digital assets $1.46M (9 BTC), and cash $640,621. Operational uptime at Center One was >99% during the quarter. Management implemented liquidity measures including a lender-supported three-month payment deferral, executive pay deferrals, selective contractor reductions, potential equipment sales, and a ~40% temporary down-clocking of the mining fleet while evaluating financing and AI conversion options (initial ~200 GPU rollout scalable to 2,000+). A results presentation will be available December 2, 2025.
Positive
- Revenue +28% YoY to $3.34M
- Compute Power Profit of $921,602
- Adjusted EBITDA of $333,505
- Digital assets totaling $1.46M (including 9 BTC)
- Center One uptime over 99%
Negative
- BTC mined down 32% to 21 BTC
- Net loss of $(284,424) for Q3 2025
- Temporary fleet down-clocking of ~40% reduces hashrate
- Cash balance of $640,621 may constrain short-term flexibility
Toronto, Ontario--(Newsfile Corp. - December 1, 2025) - SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) ("SATO" or the "Company"), a provider of high-density compute infrastructure, today announced its unaudited financial results for the three and nine months ended September 30, 2025.
Readers are directed to the Company's Financial Statements and Management's Discussion and Analysis ("MD&A") for full details, filed on SEDAR+ (www.sedarplus.ca) and available at www.bysato.com. All amounts are in Canadian dollars unless otherwise stated.
Q3 2025 Highlights
Despite the impact of the April 2024 Bitcoin Halving and record network difficulty, SATO delivered quarter-over-quarter improvements in revenue, profitability, and operational stability.
Key results:
- Revenue of
$3.34 million , up28% from Q3 2024 - 21 BTC mined, compared with 31 BTC in Q3 2024 (a
32% decline driven by the halving and all-time-high network difficulty) - Gross profit of
$381,566 , vs. a gross loss of$(544,387) in Q3 2024 - Net loss of
$(284,424) , improved from$(1,717,056) in Q3 2024 - Compute Power Profit1 of
$921,602 (Q3 2024:$199,656) - Adjusted EBITDA2 of
$333,505 (Q3 2024:$(353,728) ) - Digital assets (including restricted digital assets)3 of
$1.46 million , including 9 BTC at quarter-end - Cash balance:
$640,621
Operationally, Center One achieved less than
Liquidity Measures
To preserve cash in a post-halving environment and maintain flexibility while advancing the AI transition, management is implementing several measures:
- A lender-supported three-month grace period (beginning November 2025) deferring principal and interest payments on the Company's long-term loan
- Executive compensation deferral and selective contractor reductions
- Potential sale of non-core equipment and continued cost optimization
- Temporary down-clocking of approximately
40% of the company mining fleet to reduce power consumption, improving daily profitability despite a lower hashrate
These actions extend SATO's runway as the Company evaluates financing options and strategic alternatives.
Strategic Initiatives and Advancing the AI Transition
SATO continues to execute a multi-phase plan to repurpose a portion of Center One into high-density AI compute:
- Initial GPU deployment, pending funding: A staged rollout beginning with ~200 GPUs, scalable to 2,000+
- AI Factory 1: Engineering, liquid-cooling design, and power planning underway
- Financing: The Company has received preliminary non-binding expressions of interest for debt and equity financing to fund the expansion, subject to due diligence and definitive agreements4
- DAT Strategy: Continued development of a combined Bitcoin and AI-linked digital asset treasury to complement future contracted AI revenues
CEO Comment
"Q3 reflects the reality of the post-halving environment: unprecedented difficulty and significant Bitcoin volatility," said Romain Nouzareth, Chairman & CEO. "We anticipated this. We reduced costs, worked proactively with our lender to align payment schedules with our new strategy, and accelerated our AI plan so we can pivot toward contracted, recurring revenue."
"With nearly a decade of Bitcoin experience, I know discipline and adaptability matter most. Our actions extend our runway and position SATO to evolve from a Bitcoin miner into a high-density AI infrastructure provider supported by our Digital Asset Treasury strategy."
SATO Technologies' management has prepared a presentation of these results, which will be available on December 2, 2025, on our website (www.bysato.com) and on our YouTube channel (https://www.youtube.com/@SATO_BTC).
Full financials and MD&A are available on SEDAR+.
On behalf of the Board,
Romain Nouzareth
Chairman & CEO, SATO Technologies Corp.
About SATO
SATO, founded in 2017, is a publicly listed company providing efficient computing power. The Company currently operates one data center tailored to provide computing power for Bitcoin Mining, but may look to expand or add additional data centers for computing power for Bitcoin Mining, High Power Computing ("HPC"), Artificial Intelligence ("AI"). The Company is listed on TSXV: SATO & OTCQB: CCPUF. To learn more about SATO, visit www.bysato.com.
For additional information, please contact:
Investor Relations:
invest@bysato.com
Phone: +1 (347) 280 3663
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Non-GAAP Financial Measures
This press release makes reference to certain non-GAAP/non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA and Computer Power Profits. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, they are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Management uses these measures to EBITDA as a key financial metric to evaluate SATO's operating performance as a complement to results provided in accordance with IFRS.
Adjusted EBITDA represents net income excluding finance income, finance expense, income taxes, depreciation, and amortization, and adjusted for non-cash and non-recurring transactions. Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of SATO. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by SATO's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of SATO's operating performance. It is a key measure used by SATO's management and board of directors to understand and evaluate SATO's operating performance, to prepare annual budgets, and to help develop operating plans.
Compute Power Profit represents gross profit (revenue earned from mining pool operators less cost of revenue), excluding (i) depreciation, (ii) revenue and site operating costs directly attributable to hosting revenue, and (iii) other revenue. This measure focuses on profitability from core compute power operations, giving investors clearer insight into operational efficiency and scalability before considering non-operating factors. Management and the board use Compute Power Profit to assess performance and cost efficiency of compute services, monitor trends and guide infrastructure and energy decisions, and support budgeting and forecasting. Previously called "Mining Profit," the name was changed to "Compute Power Profit" to reflect SATO's broader focus on compute power services beyond traditional mining.
Refer to reconciliation to Adjusted EBITDA and Computer Power Profit under the " Non-GAAP Financial Measures" section of this release and in the Company's MD&A for the three and nine months ended September 30, 2025 and September 30, 2024, copies of which can be found under SATO Technologies Corp.'s profile on SEDAR+ at sedarplus.ca.
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| $ | $ | $ | $ | ||||||||||||
| Net income (loss) | (284,424 | ) | (1,717,056 | ) | (1,936,320 | ) | 1,269,387 | ||||||||
| Add (deduct) | |||||||||||||||
| Finance expense | 163,286 | 247,097 | 557,790 | 787,902 | |||||||||||
| Deferred income taxes | - | - | - | - | |||||||||||
| Depreciation | 545,316 | 749,323 | 1,635,028 | 2,201,568 | |||||||||||
| EBITDA | 424,178 | (720,636 | ) | 256,498 | 4,258,857 | ||||||||||
| Share based compensation | 32,763 | 48,417 | 232,914 | 156,250 | |||||||||||
| Loss (gain) on use of digital assets | (185,979 | ) | 111,284 | (532,260 | ) | (231,635 | ) | ||||||||
| Unrealized foreign exchange (gain) loss | 62,543 | 304,489 | 431,852 | 72,650 | |||||||||||
| Unrealized gain on revaluation of digital assets | - | (97,282 | ) | - | (1,194,769 | ) | |||||||||
| Adjusted EBITDA | 333,505 | (353,728 | ) | 389,004 | 3,061,353 | ||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| $ | $ | $ | $ | ||||||||||||
| Gross Profit | 381,566 | (544,387 | ) | 569,584 | 3,082,973 | ||||||||||
| Add (deduct) | |||||||||||||||
| Other revenue | (5,280 | ) | (5,280 | ) | (15,840 | ) | (38,331 | ) | |||||||
| Depreciation | 545,316 | 749,323 | 1,635,028 | 2,201,568 | |||||||||||
| Compute Power Profit | 921,602 | 199,656 | 2,188,772 | 5,246,210 | |||||||||||
Digital Assets (including restricted digital assets) is a supplementary financial measure, which represents the total value of digital assets held by the Company, including those subject to contractual or regulatory restrictions. It comprises unrestricted digital assets available for operational use and restricted digital assets that are reserved for specific obligations or held under lock-up arrangements.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release are forward-looking statements or contain forward-looking information, which may include, but are not limited to, statements with respect to the future financial or operating performance of SATO and its projects, business strategy, corporate plans, objectives and goals, as well as the market conditions applicable to SATO. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, among others: expectations regarding the market for AI services and the Company's ability to penetrate that market; expectations regarding available financing and preliminary expressions of interest; liquidity measures and their expected impact; evaluation of strategic alternatives; the Company's multi-phase AI transition plan, including GPU deployment and development of AI Factory 1; the DAT (Digital Asset Treasury) strategy; anticipated operational efficiency initiatives; and expectations for future revenue models, including contracted, recurring AI revenue; and other events or conditions that may occur in the future.
Forward-looking information and statements are based on current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates, as of the date of this news release, including the availability of financing on acceptable terms and within expected timelines; growth in market demand for AI compute services; successful completion of engineering and infrastructure upgrades; stability in Bitcoin prices and network difficulty; a stable regulatory environment for cryptocurrency and AI operations; timely procurement of GPUs and related hardware; and achievement of targeted cost optimization measures. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SATO to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to, financing may not materialize or may occur on unfavorable terms; slower-than-expected AI market adoption or increased competition; supply chain constraints or cost inflation for GPUs and cooling systems; Bitcoin price volatility and network difficulty impacting liquidity; regulatory changes affecting cryptocurrency mining or AI compute operations; operational disruptions such as power, internet, or cybersecurity incidents; and execution risks in transitioning from mining to AI infrastructure, and other factors discussed in the section entitled "Risk Factors" in the Company's most recent Annual Information Form (the "AIF"). Although SATO has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein and in the AIF are made as of the date of the respective document in which they are contained and, other than as required by law, SATO disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
1 Compute Power Profit is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on each non-GAAP financial measure.
2 Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on each non-GAAP financial measure.
3 This is a supplementary financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on each supplementary financial measure
4 There can be no assurance that any preliminary, non-binding expressions of interest for debt or equity financing will result in definitive agreements or be completed on the terms currently contemplated or at all.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276556
FAQ
What did SATO (CCPUF) report for Q3 2025 revenue and net loss?
How many bitcoins did SATO mine in Q3 2025 and how does that compare to Q3 2024?
What liquidity measures did SATO announce on December 1, 2025 to extend runway?
What is SATO's plan and timeline for converting to AI compute (CCPUF)?
How much digital asset treasury did SATO report at quarter-end for Q3 2025?
Where and when can investors access SATO's Q3 2025 results presentation?
