DarkHorse Reports Third Quarter 2026 Financial Results

The new Kentucky power contract supports a proposed data center, while planned AI facilities remain in pre-construction development.

Rhea-AI Summary

DarkHorse Technologies (Nasdaq: DRK) reported third-quarter 2026 revenue of $3.031 million as it expanded contracted power capacity and completed hosting installations. Revenue compared with $2.623 million a year earlier. Net loss was $5.778 million versus $4.248 million a year earlier and $13.8 million in the preceding quarter.

Contracted power doubled to approximately 100 MW, with approximately 50 MW operating and 50 MW under development. Installations were completed across three sites under the 30 MW Bitdeer hosting arrangement. Planned AI facilities remain in pre-construction development, with utility coordination, civil infrastructure and permitting required before construction.

A September private financing generated approximately $4.8 million net. Cash totaled $8.823 million at September 30, versus $3.707 million at year-end 2025. DarkHorse also sold its Iowa site and began selling its mining fleet.

14 points · 1 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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3 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointSeptember private financing closed with approximately $4.8 million net proceeds. 29% of market cap
• Moderate pointQ3 revenue rose to $3.031 million from $2.623 million a year earlier and $2.5 million in Q2.
• Moderate pointContracted power doubled to approximately 100 MW through a 50 MW Hopkinsville Electric System contract signed September 30.
• Moderate pointBitdeer installations completed across three sites under a 30 MW hosting arrangement with profit-sharing.
• Moderate pointIowa site sale to Simple Mining provided $0.3 million cash and a $1.2 million interest-free promissory note.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Mining fleet sales reached $1.3 million by September 30 under a binding term sheet targeting approximately $2.9 million. 18% of market cap
• Moderate pointQ3 basic and diluted loss per share narrowed to $0.65 from $1.49 a year earlier.

7 minor points

• Minor pointAI development advanced with an initial design package and boundary surveys at two Kentucky development sites.
• Minor pointOctober preliminary layouts covered three projects in Kentucky and Tennessee.
• Minor pointFinancing units priced at $3.00, a 29% premium to the September 4 closing share price.
• Minor pointChairman and CEO affiliates purchased 333,332 units for approximately $1.0 million in the financing.
• Minor pointSeptember 30 cash rose to $8.823 million from $3.707 million at December 31, 2025.
• Minor pointQ3 depreciation and amortization declined to $608,000 from $1.724 million a year earlier.
• Minor pointQ3 property and equipment impairment was zero, versus $500,000 a year earlier.

Negative

• Major pointNine-month net loss widened to $23.713 million from $11.366 million a year earlier.
• Major pointNine-month property and equipment impairment increased to $7.039 million from $500,000 a year earlier. 42% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Financing units issued one common share and one five-year warrant each; warrants exercisable at $3.50 dilute holders.
• Moderate pointQ3 net loss was $5.778 million, versus $4.248 million a year earlier, but narrower than Q2's $13.8 million.
• Moderate pointNine-month revenue fell to $7.399 million from $8.458 million a year earlier.
• Moderate pointQ3 operating loss widened to $5.790 million from $4.035 million a year earlier.
• Moderate pointQ3 cost of revenue, excluding depreciation and amortization, increased to $3.344 million from $1.957 million a year earlier.
• Moderate pointQ3 general and administrative expenses increased to $3.288 million from $1.485 million a year earlier.
• Moderate pointQ3 disposal losses increased to $1.179 million from $793,000 a year earlier.
• Moderate pointPlanned AI facilities remain pre-construction, requiring utility coordination, civil infrastructure and permitting before construction.
• Moderate pointCurrent liabilities increased to $4.915 million from $1.802 million at December 31, 2025.
• Moderate pointShareholders' equity declined to $18.714 million from $23.300 million at December 31, 2025.

4 minor points

• Minor pointQ3 intangible asset impairment reached $199,000, versus zero a year earlier.
• Minor pointQ3 provision for losses on other assets increased to $406,000 from $300,000 a year earlier.
• Minor pointApproximately 50 MW of contracted capacity relates to a facility still under development.
• Minor pointLong-term liabilities reached $1.925 million at September 30, versus zero at December 31, 2025.

News Explained

DarkHorse’s $5.0 million PIPE, a private sale of securities to selected investors, closed on September 11, 2026; each $3.00 unit included one common share and a five-year warrant exercisable at $3.50, adding shares and allowing further dilution if warrants are exercised.

Key Figures

Revenue: $3.0 million Net loss: $5.8 million Cash and cash equivalents: $8.8 million +4 more

Revenue

$3.0 million

Q3 2026; compared with $2.5 million in Q2 2026 and $2.6 million in Q3 2025

Net loss

$5.8 million

Q3 2026; compared with $13.8 million in Q2 2026 and $4.2 million in Q3 2025

Cash and cash equivalents

$8.8 million

As of September 30, 2026; compared with $2.8 million as of June 30, 2026

Contracted power capacity

Approximately 100 MW

Approximately 50 MW operating and 50 MW at a facility under development

Hopkinsville power contract

50 MW

Signed by a subsidiary with Hopkinsville Electric System on September 30, 2026

PIPE financing

$5.0 million

Closed September 11, 2026

PIPE unit and warrant terms

$3.00 per unit; $3.50 per share warrant exercise price

Each unit contained one common share and one five-year warrant

Historical Context

1 past event · Latest: Oct 06

1 event

1. Oct 06

   Power contract

   24h Move

   +3.4%

   Reported the 50 MW Hopkinsville contract and terms; the current release specifies 50 MW operating and 50 MW under development.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

private investment in public equity (pipe), warrant, promissory note, ai inference, +1 more

5 terms

private investment in public equity (pipe) financial

"a $5.0 million private investment in public equity (PIPE) financing"

A private investment in public equity (PIPE) is when a publicly traded company sells new shares or instruments that can become shares directly to a small group of private investors instead of through the open market. Think of it like a company taking a private loan from a few investors rather than holding a big public sale; it raises cash fast but can dilute existing owners and signal either financial need or strong backing by informed investors.

warrant financial

"one common share and one five-year warrant exercisable at $3.50 per share"

A warrant is a time-limited financial contract that gives its holder the right to buy a company's shares at a set price before a specified date, like a coupon that lets you purchase stock at a fixed discount for a limited time. It matters to investors because warrants offer leveraged exposure to a stock’s upside and can dilute existing shareholders if exercised, so they affect potential gains and the company’s outstanding share count.

promissory note financial

"a $1.2 million interest-free promissory note for the balance"

A promissory note is a written IOU in which one party promises to pay a specific sum, often with interest, to another party by a set date or on demand. Investors care because it functions like a loan: it creates a legal claim on future cash flows, carries credit and timing risk, and can affect valuation or liquidity—think of it as a formal, tradable promise to be repaid that can be assessed like any other debt investment.

ai inference technical

"infrastructure for AI inference, the use of trained models to perform tasks"

AI inference is the step where a trained artificial intelligence model uses its learned patterns to analyze new data and produce an output — for example, predicting a stock trend, flagging a medical image, or generating text, much like using a recipe to cook a meal. It matters to investors because inference determines real-world performance, speed, and cost of AI features, affects user experience and scalability, and influences operating expenses, regulatory compliance, and competitive advantage.

high-performance computing technical

"assets for high-performance computing, AI workloads and digital asset infrastructure"

A cluster of very powerful computers, special chips and fast networks designed to tackle huge, complex calculations far faster than a normal PC — like replacing a single delivery van with a synchronized fleet to move a city’s worth of packages. For investors, high-performance computing matters because it enables faster product development, more accurate simulations and data analysis, and new revenue streams for hardware, software and services, making firms that supply or use it potentially more competitive and scalable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Contracted power doubled to approximately 100 MW
Bitdeer installations completed across three sites

Wilmington, Delaware--(Newsfile Corp. - November 6, 2026) - DarkHorse Technologies Inc. (Nasdaq: DRK) (the "Company" or "DarkHorse") today reported financial results for the third quarter ended September 30, 2026. During the quarter, the Company doubled its contracted power capacity to approximately 100 MW. Of the 100 MW, approximately 50 MW is currently operating and the remaining 50 MW relates to a facility under development. The Company also completed Bitdeer mining machine installations across three sites and advanced engineering and site work for planned superintelligence factories focused on AI inference, including an initial basis-of-design package for a Kentucky project and boundary surveys at two Kentucky development sites. Across its sites in Kentucky and Tennessee, the Company continued to work with its utilities and local officials on the utility coordination, civil infrastructure and permitting required before construction can begin.

CEO Commentary

"We had a very productive quarter," said Joel Block, Chief Executive Officer of DarkHorse. "We doubled our contracted power capacity to approximately 100 MW, completed Bitdeer installations across three sites and advanced engineering for our planned superintelligence factories, including an initial basis-of-design package for a Kentucky project and boundary surveys at two of our Kentucky development sites. Additionally, we sold non-core assets and raised capital as we continued to shift the business toward power and data center infrastructure." Block continued, "At our sites in Kentucky and Tennessee, we have long-standing working relationships with the local communities, utilities and officials. Power, land and local support are what determine whether a project actually gets built, and we are building trust site by site rather than assuming it will just be there."

"We believe the race in AI infrastructure is to bring usable compute capacity online in 2027," Block added. "Our focus is inference, where trained AI models serve everyday applications. We see an opportunity to combine modular builds with existing industrial sites and established power infrastructure to bring capacity into service faster. Our goal is to turn those sites into operating superintelligence factories that serve customers and generate revenue."

AI Inference Strategy

DarkHorse is focused on developing infrastructure for AI inference, the use of trained models to perform tasks in everyday software and business applications. Large frontier-model training projects can require several hundred megawatts at a single location. Management believes growing inference demand creates an opportunity for smaller sites, including those under 50 MW, that can be developed and deployed more rapidly.

The Company plans to use modular builds at suitable existing industrial sites, including locations with power infrastructure already in place. Management believes this approach can shorten development timelines, support phased deployment and help bring capacity into service sooner.

Strategic and Business Updates

• Doubled contracted power to approximately 100 MW. On September 30, 2026, a subsidiary of the Company signed a 50 MW Data Center Project Power Contract with Hopkinsville Electric System in Kentucky. The agreement doubled the Company's contracted power capacity to approximately 100 MW. The additional capacity supports a proposed data center under development.

• Completed installations for Bitdeer hosting. During the latter part of the third quarter, installation was completed at three sites covered by the Company's 30 MW hosting arrangement with Bitdeer Technologies. The sites are located in Tennessee and Kentucky. The agreements provide for hosting with profit-share while the Company evaluates future uses of its infrastructure, including AI workloads.

• Advanced engineering for planned AI facilities. The Company advanced engineering for planned superintelligence factories in the Tennessee Valley Authority region. Work included an initial basis-of-design package for a Kentucky project and boundary surveys for two Kentucky development sites. These activities remain part of pre-construction development. DarkHorse is building a repeatable development program that brings together engineering, utility coordination, procurement, financing and delivery.

• Completed $5 million PIPE with insider participation. On September 8, 2026, the Company entered into a securities purchase agreement for a $5.0 million private investment in public equity (PIPE) financing, which closed on September 11, 2026. Affiliates of the Company, including the Chairman of the Board and the Chief Executive Officer, purchased an aggregate of 333,332 units for approximately $1.0 million. The Company sold units at $3.00 each, a 29% premium to its closing share price on September 4, 2026, the last trading day prior to signing. Each unit contained one common share and one five-year warrant exercisable at $3.50 per share. Net proceeds totaled approximately $4.8 million. The Company intends to use these funds for working capital and general corporate purposes, including AI and HPC development in the TVA region.

• Sale of non-core assets. On September 1, 2026, the Company entered into a definitive agreement to sell its Iowa site to Simple Mining for $1.5 million. The Company received $0.3 million in cash and a $1.2 million interest-free promissory note for the balance. On the same date, the Company entered into a binding term sheet to sell its mining fleet for estimated proceeds of approximately $2.9 million. As of September 30, 2026, $1.3 million of mining machines had been sold. The sale is scheduled over a 90-day period that began on September 1. The Company retains ownership of each machine until payment is received.

• Reduced bitcoin holdings to zero. As part of the Company's transformation toward power and data center infrastructure, the Company has strategically reduced its bitcoin holdings to zero.

• Completed the DarkHorse rebrand. The Company changed its name from Sphere 3D Corp. to DarkHorse Technologies Inc. on September 16, 2026. Its common shares began trading on Nasdaq under the ticker symbol DRK on September 17, 2026.

Progress Since Quarter End

In October 2026, the Company's engineering and modular infrastructure partners prepared preliminary layouts for three projects in Kentucky and Tennessee. The Company also continued coordination with local officials on civil infrastructure and permitting requirements. This work remains part of pre-construction development.

Q3 2026 Financial Highlights

• Revenue: $3.0 million, compared to $2.5 million in the second quarter of 2026 and $2.6 million in the third quarter of 2025.

• Net loss: $5.8 million, compared to $13.8 million in the second quarter of 2026 and $4.2 million in the third quarter of 2025.

• Cash and cash equivalents: $8.8 million as of September 30, 2026, compared to $2.8 million as of June 30, 2026 and $3.7 million as of December 31, 2025.

Revenue increased from the second quarter of 2026 and from the third quarter of 2025, reflecting the first full quarter of contribution from the operations acquired in the Cathedra Bitcoin transaction, which closed on June 1, 2026, together with the completion of the Bitdeer hosting installations late in the quarter. Net loss narrowed from $13.8 million in the second quarter of 2026. Cash and cash equivalents increased from $2.8 million at June 30, 2026, reflecting the private placement completed in September and proceeds from the sale of non-core assets. Results for the third quarter of 2025 reflect the Company on a standalone basis and include no contribution from Cathedra, which limits comparability between the periods.

About DarkHorse Technologies Inc.

DarkHorse Technologies Inc. (Nasdaq: DRK), formerly Sphere 3D Corp., is a digital infrastructure company focused on operating and expanding scalable power and data center assets for high-performance computing, AI workloads and digital asset infrastructure. Following its business combination with Cathedra Bitcoin and the completion of the previously announced sale of its Iowa site, the Company owns and/or operates approximately 50 MW of operating power capacity across four data center locations in Tennessee and Kentucky, and has a proposed new 50 MW data center under development in Kentucky, together with a development pipeline of approximately 100 MW of additional potential expansion opportunities. The Company combines infrastructure ownership, energy optimization expertise and capital markets access to pursue long-term value creation across next-generation compute infrastructure.

For more information, visit www.darkhorse.inc.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events and include statements regarding the Company's strategy, plans and objectives; the integration and expected benefits of the business combination with Cathedra Bitcoin; the utilization, evaluation, conversion and expansion of the Company's power and data center assets. In some cases, forward-looking statements can be identified by words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue," or the negative of these words or other similar terms or expressions. Expectations and beliefs regarding these matters may not materialize, and actual results are subject to risks and uncertainties that could cause them to differ materially from those projected. These risks and uncertainties include general market conditions and those more fully described in the Company's filings with the Securities and Exchange Commission, including its reports on Forms 10-K, 10-Q and 8-K and other filings made from time to time and available at www.sec.gov. Forward-looking statements speak only as of the date they are made and are based on information available at that time. The Company does not assume any obligation to update forward-looking statements to reflect subsequent circumstances or events, except as required by applicable securities laws.

DarkHorse Contact

investor.relations@darkhorse.inc

DARKHORSE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
		(Unaudited)				(Unaudited)				(Unaudited)
Revenues...........................................................................................	$	3,031			$	2,623			$	7,399			$	8,458
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown below)............................................................................		3,344				1,957				7,234				6,452
General and administrative......................................................		3,288				1,485				10,570				6,780
Depreciation and amortization................................................		608				1,724				3,072				4,997
Impairment of property and equipment..................................		-				500				7,039				500
Loss on disposal of property and equipment..........................		1,179				793				1,420				1,652
Impairment of intangible assets...............................................		199				-				787				-
Provision for loss on other assets.............................................		406				300				406				300
Change in fair value of Bitcoin..................................................		(203	)			(101	)			613				(373	)
Total operating costs and expenses.................................		8,821				6,658				31,141				20,308
Loss from operations.........................................................................		(5,790	)			(4,035	)			(23,742	)			(11,850	)
Other income (expense):
Investment gain (loss)...............................................................		(10	)			(220	)			(10	)			439
Other income, net.....................................................................		22				7				42				47
Net loss before income taxes...........................................................		(5,778	)			(4,248	)			(23,710	)			(11,364	)
Provision for income taxes...............................................................		-				-				3				2
Net loss..............................................................................................	$	(5,778	)		$	(4,248	)		$	(23,713	)		$	(11,366	)
Net loss per share:
Basic.........................................................................................	$	(0.65	)		$	(1.49	)		$	(4.05	)		$	(4.08	)
Diluted......................................................................................	$	(0.65	)		$	(1.49	)		$	(4.05	)		$	(4.08	)
Shares used in computing net loss per share:
Basic.........................................................................................		8,840,643				2,855,360				5,848,894				2,783,583
Diluted......................................................................................		8,840,643				2,855,360				5,848,894				2,783,583

 

DARKHORSE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
	September 30,				December 31,
		2026				2025
		(Unaudited)				(Unaudited)
ASSETS
Cash and cash equivalents..................................................................................................................................	$	8,823			$	3,707
Bitcoin...................................................................................................................................................................		-				3,263
Accounts receivable.............................................................................................................................................		351				-
Notes receivable, net...........................................................................................................................................		1,000				-
Property and equipment held for sale................................................................................................................		1,615				-
Other current assets.............................................................................................................................................		770				1,707
Total current assets......................................................................................................................................		12,559				8,677
Property and equipment, net..............................................................................................................................		5,068				14,608
Operating lease right-of-use assets......................................................................................................................		1,302				-
Goodwill................................................................................................................................................................		3,396				-
Intangible assets, net............................................................................................................................................		449				1,610
Other non-current assets......................................................................................................................................		2,798				225
Total assets....................................................................................................................................................	$	25,572			$	25,120
LIABILITIES, TEMPORARY EQUITY, AND SHAREHOLDERS' EQUITY
Current liabilities...................................................................................................................................................	$	4,915			$	1,802
Long-term liabilities..............................................................................................................................................		1,925				-
Temporary equity..................................................................................................................................................		18				18
Shareholders' equity.............................................................................................................................................		18,714				23,300
Total liabilities, temporary equity, and shareholders' equity......................................................................	$	25,572			$	25,120

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322814

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were DarkHorse's third-quarter 2026 revenue and net loss?

DarkHorse reported $3.031 million in revenue and a $5.778 million net loss for the quarter ended September 30, 2026. A year earlier, revenue was $2.623 million and net loss was $4.248 million. Basic and diluted loss per share narrowed to $0.65 from $1.49.

How much of DarkHorse's contracted power capacity is operating?

Approximately 50 MW is operating out of approximately 100 MW of contracted power capacity. The remaining 50 MW relates to a facility under development. A subsidiary signed the 50 MW Data Center Project Power Contract with Hopkinsville Electric System on September 30, 2026.

What are the terms of DarkHorse's mining fleet sale?

The mining fleet sale has estimated proceeds of approximately $2.9 million and is scheduled over a 90-day period beginning September 1, 2026. By September 30, $1.3 million of mining machines had been sold. DarkHorse retains ownership of each machine until payment is received.

Why are DarkHorse's third-quarter 2026 and 2025 results not directly comparable?

The 2026 quarter includes acquired Cathedra Bitcoin operations, while the 2025 quarter reflects DarkHorse on a standalone basis. The Cathedra transaction closed June 1, 2026, making the third quarter of 2026 the first full quarter of contribution from those operations.