The quarterly deficit ballooned significantly from the $11.1 million loss reported during the same period last year. Total revenue collapsed to $31.9 million, down from $100.2 million a year ago, as the company struggled with both lower sales volumes and compressed pricing for its mining equipment. Revenue from hardware products specifically plummeted to $13.6 million, hit hard by reduced computing power demand and smaller margins on each unit sold.

Chief Executive Nangeng Zhang attributed the decline to a confluence of market pressures, citing weaker mining economics and seasonal power constraints that hindered profitability. While mining revenue fell to $17.7 million, Zhang remains focused on fleet upgrades and long-term infrastructure development to navigate current headwinds.