- Bitcoin Mining Revenue of $138.4 million
- Operating Income of $41.5 million
- Net Income of $40.1 million
- Adjusted EBITDA of $85.0 million1
- Basic and diluted earnings per share of $1.07
- Cash and Bitcoin of $271.8 million
- Bitcoin Held in Treasury of 2,393.42
AUSTIN, Texas–(BUSINESS WIRE)–Ionic Digital Inc. (“Ionic Digital” or the “Company”), a digital infrastructure and cryptocurrency mining company, today reported its financial results for its inaugural fiscal year 2024, the eleven months of operations from February 1, 2024, the first day of operation following the Company’s acquisition of the mining assets of Celsius Mining LLC (“Celsius Mining” or the “Predecessor Entity”), through December 31, 2024 (the “eleven months ended December 31, 2024”). The reporting of the Company’s fiscal year 2024 financial results follows the completion of its external financial audit, which included (a) an audit of the Predecessor Entity for the one-month period ended January 31, 2024, and (b) an audit of Ionic for the eleven months ended December 31, 2024. As disclosed in the Company’s preliminary fiscal year 2024 financial results, the goodwill analysis that has since been completed did not have a material impact on the preliminary fiscal year 2024 financial results and key performance indicators reported on June 26, 2025, which can be viewed here.
The Company reported net income of $40.1 million, driven by $138.4 million in bitcoin (“BTC”) mining revenue and an increase to the fair value of BTC Held in Treasury for the eleven months ended December 31, 2024. Basic and diluted earnings per share were $1.07 for the eleven months ended December 31, 2024. The Company held cash and 2,393.4 BTC in Treasury with a combined fair value of $271.8 million as of December 31, 2024.
“The first eleven months were transformational for Ionic Digital as we established a strong foundation for the future. Our financial results reflect not only the scale of what we’ve accomplished, but also the operational discipline and strategic focus that will guide us forward. We remain entirely committed to exploring and delivering value-maximizing liquidity pathways for our stockholders, building on the momentum from our inaugural year of operation to drive long-term growth,” said Anthony McKiernan, Interim Chief Executive Officer of Ionic Digital.
About Ionic Digital
Ionic Digital is a digital infrastructure and cryptocurrency mining company. We are an established bitcoin miner, developing practical and innovative approaches to energy monetization. With facilities across the United States, we focus on delivering the next generation of energy-efficient, cost-effective computing through sustainable bitcoin mining while supporting grid flexibility by adapting operations to changing energy demand. Follow us on X @IonicDigital.
Forward-Looking Statements
This press release includes forward-looking statements that reflect our plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. These forward-looking statements are based on the historical financial information and our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Forward-looking statements made in this press release speak only as of its date, and we undertake no obligation to update them in light of new information or future events, except as required by law.
Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often characterized by the use of words such as “anticipates, ” “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “plans,” or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact us, include, but are not limited to: our mining facilities and ability to obtain miners which may fail to keep pace with rapidly changing technology and evolving industry standards; our third-party contract manufacturers, pool service providers, component suppliers and energy providers, some of which are sole source and limited source suppliers; our ability to raise financing in the future; the price volatility of bitcoin, the digital currency native to the Bitcoin network; our financial and business performance, including financial projections and business metrics; the dependence of our revenues on general economic conditions and the willingness of enterprises to invest in technology; our ability to establish and maintain proper and effective internal control over financial reporting; our commercial partnerships and business relationships; the effects of competition and regulation on our business; breaches of the security of our information systems, products or services or of the information systems of our third-party providers; business interruptions, whether due to catastrophic disasters or other events; potential litigation and other claims, including for infringement, which could cause us to incur significant expenses or prevent us from selling our products or services; and environmental, health and safety, laws, regulations, costs and other liabilities.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses Adjusted EBITDA, a non-GAAP financial measure, to provide supplemental information to readers. The Company’s board of directors and management team use Adjusted EBITDA to assess its financial performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items that impact the comparability of financial results from period to period.
The Company believes Adjusted EBITDA is useful to investors in their assessment of our operating performance. However, Adjusted EBITDA is not prepared in accordance with GAAP, nor does it have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historic Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below.
|
____________________ 1 This is a non-GAAP measure. For further information on non-GAAP measures, please refer to the “Non-GAAP Financial Measures” section of this news release. Please also refer to tables at the end of this news release for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. 2 Bitcoin Held in Treasury as of December 31, 2024 excludes 5.4 BTC mined and recognized as revenue during the eleven months ended December 31, 2024, but deposited to the Company’s wallet in 2025. |
|
IONIC DIGITAL INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) |
|||||||
|
Successor |
|
|
Predecessor (Debtor-in-Possession) |
||||
|
December 31, 2024 |
|
|
December 31, 2023 |
||||
|
ASSETS |
|
|
|
|
|||
|
Current assets: |
|
|
|||||
|
Cash and cash equivalents |
$ |
48,393 |
|
|
$ |
33,660 |
|
|
Crypto assets |
|
223,438 |
|
|
|
16,018 |
|
|
Prepaid expenses and other current assets |
|
12,005 |
|
|
|
13,097 |
|
|
Total current assets |
|
283,836 |
|
|
|
62,775 |
|
|
|
|
||||||
|
Non-current assets: |
|
|
|
|
|||
|
Property and equipment, net |
|
286,835 |
|
|
|
234,479 |
|
|
Goodwill |
|
229,778 |
|
|
|
– |
|
|
Operating lease right-of-use asset |
|
489 |
|
|
|
256 |
|
|
Long-term deposits (net of $1,720 and $0 allowance for credit losses) |
|
16,909 |
|
|
|
22,717 |
|
|
Other non-current assets |
|
46 |
|
|
|
1,856 |
|
|
Total non-current assets |
|
534,057 |
|
|
|
259,308 |
|
|
|
|
|
|||||
|
TOTAL ASSETS |
$ |
817,893 |
|
|
$ |
322,083 |
|
|
|
|
||||||
|
LIABILITIES AND MEMBERS’ AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
|
Current liabilities: |
|
|
|
||||
|
Taxes payable |
|
1,110 |
|
|
|
7,294 |
|
|
Accounts payable |
|
2,454 |
|
|
|
5,538 |
|
|
Accrued expenses |
|
8,987 |
|
|
|
2,072 |
|
|
Current portion of lease liability |
|
37 |
|
|
|
– |
|
|
Total current liabilities |
|
12,588 |
|
|
|
14,904 |
|
|
|
|
|
|
|
|||
|
Non-current liabilities: |
|
|
|
||||
|
Deferred tax liabilities, net |
|
12,080 |
|
|
|
– |
|
|
Other long-term liabilities |
|
5,401 |
|
|
|
– |
|
|
Non-current portion of lease liability |
|
194 |
|
|
|
– |
|
|
Total non-current liabilities |
|
17,675 |
|
|
|
– |
|
|
Total liabilities not subject to compromise |
|
30,263 |
|
|
|
14,904 |
|
|
Liabilities subject to compromise |
|
– |
|
|
|
828,155 |
|
|
TOTAL LIABILITIES |
$ |
30,263 |
|
|
$ |
843,059 |
|
|
IONIC DIGITAL INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) |
|||||||
|
|
Successor |
|
|
Predecessor (Debtor-in-Possession) |
|||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|||
|
|
|
|
|
|
|||
|
Members’ equity (Predecessor), no par value, 100 units outstanding |
$ |
– |
|
|
$ |
(520,976 |
) |
|
Stockholders’ Equity (Successor): |
|
|
|||||
|
Preferred stock, $0.00001 par value, 15,000,000 shares authorized, none issued and outstanding |
|
– |
|
|
|
– |
|
|
Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized, 37,374,261 shares issued and outstanding |
|
– |
|
|
– |
|
|
|
Class B common stock, $1.00 par value, 1 share authorized, none issued and outstanding |
|
– |
|
|
|
– |
|
|
Additional paid-in capital |
|
747,485 |
|
|
– |
|
|
|
Retained earnings |
|
40,145 |
|
|
|
– |
|
|
TOTAL MEMBERS’ (DEFICIT) AND STOCKHOLDERS’ EQUITY |
$ |
787,630 |
|
$ |
(520,976 |
) |
|
|
|
|
|
|
|
|||
|
TOTAL LIABILITIES AND MEMBERS’ AND STOCKHOLDERS’ EQUITY |
$ |
817,893 |
|
|
$ |
322,083 |
|
|
IONIC DIGITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
|||||||||||||
|
|
|
Successor |
|
|
Predecessor (Debtor-in-Possession) |
||||||||
|
Eleven Months |
|
|
One Month |
|
Year Ended |
||||||||
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
Mining revenues, net |
|
$ |
138,428 |
|
|
|
$ |
15,381 |
|
|
$ |
115,445 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||
|
Cost of revenues, exclusive of depreciation |
|
|
90,486 |
|
|
|
|
9,668 |
|
|
|
74,345 |
|
|
Depreciation |
|
|
42,360 |
|
|
|
|
6,216 |
|
|
|
66,211 |
|
|
General and administrative expenses |
|
|
40,600 |
|
|
|
|
2,633 |
|
|
|
15,901 |
|
|
(Gain) loss on fair value of bitcoin |
|
|
(71,744 |
) |
|
|
|
150 |
|
|
|
– |
|
|
Realized (gain) on sale of crypto assets |
|
|
(5,532 |
) |
|
|
|
(485 |
) |
|
|
(9,585 |
) |
|
(Gain) loss on disposal of property and equipment |
|
|
(325 |
) |
|
|
|
1,793 |
|
|
|
(2,058 |
) |
|
Impairment of crypto assets |
|
|
– |
|
|
|
|
– |
|
|
|
5,979 |
|
|
Impairment of long-lived assets |
|
|
– |
|
|
|
|
– |
|
|
|
17,713 |
|
|
Other operating expenses |
|
|
1,105 |
|
|
|
|
197 |
|
|
|
3,811 |
|
|
Total operating expenses |
|
|
96,950 |
|
|
|
|
20,172 |
|
|
|
172,317 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating gain (loss) |
|
$ |
41,478 |
|
|
|
$ |
(4,791 |
) |
|
$ |
(56,872 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Other income (expense): |
|
|
|
|
|
|
|
||||||
|
Interest income |
|
|
1,885 |
|
|
|
|
– |
|
|
|
– |
|
|
Unrealized gain (loss) on energy derivatives |
|
|
– |
|
|
|
|
(159 |
) |
|
|
1,699 |
|
|
Realized gain on investments |
|
|
2,422 |
|
|
|
|
– |
|
|
|
– |
|
|
Gain on litigation settlement |
|
|
6,817 |
|
|
|
|
– |
|
|
|
– |
|
|
Other (expense) |
|
|
(152 |
) |
|
|
|
– |
|
|
|
– |
|
|
Reorganization items, net |
|
|
– |
|
|
|
|
(5,416 |
) |
|
|
(86,040 |
) |
|
Other income (expense), net |
|
|
10,972 |
|
|
|
|
(5,575 |
) |
|
|
(84,341 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Income (loss) before provision for income taxes |
|
$ |
52,450 |
|
|
|
$ |
(10,366 |
) |
|
$ |
(141,213 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Provision for income taxes |
|
|
12,305 |
|
|
|
|
22 |
|
|
|
290 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income (loss) |
|
$ |
40,145 |
|
|
|
$ |
(10,388 |
) |
|
$ |
(141,503 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Basic and diluted net income (loss) per share |
|
$ |
1.07 |
|
|
|
$ |
(103,880 |
) |
|
$ |
(1,415,030 |
) |
|
Weighted-average number of shares used in computing net loss per share, basic and diluted |
|
|
37,374,261 |
|
|
|
|
100 |
|
|
|
100 |
|
|
IONIC DIGITAL INC. CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands) |
|||||||||||||
|
|
|
Successor |
|
|
Predecessor (Debtor-in-Possession) |
||||||||
|
|
|
Eleven Months |
|
|
One Month |
|
Year Ended |
||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Net income (loss) |
|
$ |
40,145 |
|
|
|
$ |
(10,388 |
) |
|
$ |
(141,503 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||
|
Mining revenue received in bitcoin |
|
|
(138,428 |
) |
|
|
|
(15,381 |
) |
|
|
(113,432 |
) |
|
Hosting costs paid in bitcoin |
|
|
5,511 |
|
|
|
|
730 |
|
|
|
3,950 |
|
|
Depreciation |
|
|
42,314 |
|
|
|
|
6,216 |
|
|
|
66,211 |
|
|
(Gain) loss in the fair value of bitcoin |
|
|
(71,744 |
) |
|
|
|
150 |
|
|
|
– |
|
|
Impairment of crypto assets |
|
|
– |
|
|
|
|
– |
|
|
|
5,979 |
|
|
Realized (gain) on sale of crypto assets |
|
|
(5,532 |
) |
|
|
|
(485 |
) |
|
|
(9,585 |
) |
|
(Gain) loss on disposal of property and equipment |
|
|
(325 |
) |
|
|
|
1,793 |
|
|
|
(2,058 |
) |
|
Unrealized (gain) loss on energy derivatives |
|
|
– |
|
|
|
|
159 |
|
|
|
(1,699 |
) |
|
Realized (gain) on investments |
|
|
(2,422 |
) |
|
|
|
– |
|
|
|
– |
|
|
Non-cash lease expense |
|
|
70 |
|
|
|
|
3 |
|
|
|
22 |
|
|
Stock compensation expense |
|
|
1,107 |
|
|
|
|
– |
|
|
|
– |
|
|
Impairment of long-Lived Assets |
|
|
– |
|
|
|
|
– |
|
|
|
17,713 |
|
|
Realized (gain) on settlement of legal claims |
|
|
– |
|
|
|
|
– |
|
|
|
(11,143 |
) |
|
Deferred income tax provision |
|
|
12,015 |
|
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
||||||
|
Changes in assets and liabilities, net of business acquisition: |
|
|
|
|
|
|
|
||||||
|
Prepaid expenses and other current assets |
|
|
11,646 |
|
|
|
|
(6,123 |
) |
|
|
8,470 |
|
|
Long-term deposits |
|
|
(1,581 |
) |
|
|
|
(3,130 |
) |
|
|
(7,389 |
) |
|
Accounts payable and other accrued liabilities |
|
|
12,614 |
|
|
|
|
(2,005 |
) |
|
|
(3,392 |
) |
|
Lease liabilities |
|
|
(37 |
) |
|
|
|
– |
|
|
|
(18 |
) |
|
Payables to related parties |
|
|
– |
|
|
|
|
7,217 |
|
|
|
103,091 |
|
|
Net cash (used in) operating activities |
|
$ |
(94,647 |
) |
|
|
$ |
(21,244 |
) |
|
$ |
(84,783 |
) |
|
|
|
|
|
|
|
|
|
||||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||
|
Cash received in the acquisition of Predecessor business |
|
|
195,743 |
|
|
|
|
– |
|
|
|
– |
|
|
Purchases of property and equipment |
|
|
(71,617 |
) |
|
|
|
(20,864 |
) |
|
|
(25,379 |
) |
|
Proceeds from the sale of mining equipment |
|
|
– |
|
|
|
|
– |
|
|
|
1,247 |
|
|
Purchases of available-for-sale securities |
|
|
(90,002 |
) |
|
|
|
– |
|
|
|
– |
|
|
Proceeds from sale of available-for-sale securities |
|
|
92,424 |
|
|
|
|
– |
|
|
|
– |
|
|
Proceeds from sale of crypto assets |
|
|
10,114 |
|
|
|
|
8,459 |
|
|
|
99,465 |
|
|
Proceeds from sale of miner supplier coupon |
|
|
– |
|
|
|
|
– |
|
|
|
4,507 |
|
|
Net cash provided by (used in) investing activities |
|
$ |
136,662 |
|
|
|
$ |
(12,405 |
) |
|
$ |
79,840 |
|
|
IONIC DIGITAL INC. CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands) |
||||||||||||
|
|
|
Successor |
|
|
Predecessor (Debtor-in-Possession) |
|||||||
|
|
|
Eleven Months |
|
|
One Month |
|
Year Ended |
|||||
|
|
|
|
|
|
||||||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|||||
|
Capital contribution – Class A common shares |
|
|
6,378 |
|
|
|
– |
|
|
|
– |
|
|
Net cash provided by investing activities |
|
$ |
6,378 |
|
|
$ |
– |
|
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net increase/(decrease) in cash and cash equivalents |
|
$ |
48,393 |
|
|
$ |
(33,649 |
) |
|
$ |
(4,943 |
) |
|
Cash and cash equivalents at the beginning of the period |
|
|
– |
|
|
|
33,660 |
|
|
|
38,603 |
|
|
Cash and cash equivalents at the end of the period |
|
$ |
48,393 |
|
|
$ |
11 |
|
|
$ |
33,660 |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Supplemental schedule of non-cash financing and investing activities: |
|
|
|
|
|
|
|
|||||
|
Issuance of Class A common stock in exchange for Predecessor business |
|
$ |
740,000 |
|
|
$ |
– |
|
|
$ |
– |
|
|
Fair value of net assets acquired from Predecessor |
|
|
544,257 |
|
|
|
– |
|
|
|
– |
|
|
Capital contribution from Parent |
|
|
– |
|
|
|
832,662 |
|
|
|
– |
|
|
Cumulative-effect adjustment due to change in accounting principle |
|
|
– |
|
|
|
655 |
|
|
|
– |
|
|
Reclassification of deposits on miners to property and equipment |
|
|
– |
|
|
|
– |
|
|
|
(44,060 |
) |
|
Purchase of mining equipment with supplier credits |
|
|
– |
|
|
|
– |
|
|
|
(6,265 |
) |
|
Asset acquisition from legal settlement |
|
|
– |
|
|
|
– |
|
|
|
21,070 |
|
RECONCILIATION OF ADJUSTED EBITDA
The Company presents Adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States (“U.S. GAAP”). The Company defines non-GAAP “Adjusted EBITDA” as net income (loss) adjusted for: (i) impacts of interest, taxes, depreciation and amortization; (ii) realized gains on investments and litigation settlement, (iii) stock-based compensation expense to a non-employee related party, which is a non-cash, non-recurring item that the Company believes is not reflective of its general business performance; (iv) other non-recurring expenses that the Company believes are not reflective of the its general business performance.
The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure (i.e., net income (loss)) for the periods indicated (in thousands):
|
|
Eleven Months Ended |
||
|
(in $ thousands) |
|||
|
Net income |
$ |
40,145 |
|
|
Interest income |
|
(1,885 |
) |
|
Provision for income taxes |
|
12,305 |
|
|
Depreciation and amortization expense |
|
42,375 |
|
|
EBITDA |
$ |
92,940 |
|
|
Less: |
|
|
|
|
Gain on litigation settlement |
|
(6,817 |
) |
|
Realized gain on investments |
|
(2,422 |
) |
|
Add: |
|
|
|
|
Stock compensation for non-employee |
|
1,107 |
|
|
Other non-recurring expenses |
|
152 |
|
|
Adjusted EBITDA |
$ |
84,960 |
|
Contacts
Media
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