This article was first published in The Energy Mag. The original article can be viewed here. The Energy Mag (formerly The Miner Mag) provides news, data and insight on the connection between energy, computing and markets.
The company reported revenue of $51.4 million for the first quarter of 2026, with digital infrastructure rental accounting for $44.0 million, compared to just $7.4 million for the first quarter of 2026. bitcoin mining. A year earlier, Ionic’s revenue came entirely from the mining sector, which generated $41.1 million in the first quarter of 2025. Its net loss narrowed to $13.0 million from $28.0 million in the same period.
This revenue shift reflects Ionic’s decision to refocus its flagship facility in Ward County, West Texas, toward AI and high-performance computing instead of bitcoin mining. Ionic entered into a 126-month “triple net” lease with Nscale in October 2025, committing all of Ward County’s 234 megawatts of current electric capacity. The company received its first payment in November 2025, while fixed monthly payments are expected to begin in August 2026. The lease payments represent approximately $1.95 billion in contracted revenue.
Ionic amended Nscale’s lease in February 2026 to add a contractual obligation for Nscale to lease an additional 89 MW if capacity becomes available, at the same price per megawatt. If Ionic obtains this additional capacity in the second half of 2027, the total revenue contracted under the Nscale deal would be approximately $2.6 billion. The company cautioned that the added power remains subject to regulatory approval and that Nscale faces no penalties if Ionic cannot provide it.
At the same time, Ionic has significantly reduced its bitcoin mining footprint. As of March 31, the company owned approximately 120,600 miners with a total of hash rate of 12.2 EH/s, but only about 23,200 miners were active, contributing 2.0 EH/s. This compares to around 116,500 active miners and 8.9 EH/s contribution hash rate a year earlier.
The company mined 95.7 bitcoin during the first quarter of 2026 and sold none, compared to 1,331 bitcoin mined in 2025. In 2025, Ionic sold 1,009 bitcoin at an average price of $100,547, generating gross proceeds of $101.5 million.
Ionic said it is consolidating what remains of its mining operations around four locations in the Midland region of Texas: East Stiles, Garden City, Rebel and Stiles. Together, the sites represent 112 MW of current electrical capacity on approximately 59.5 acres, with an additional 10 MW expected at East Stiles in 2027. The company said it intends to bring these sites to market for HPC and AI development and may eventually cease operations. bitcoin mining over time, although it has not set a timetable or made a commitment to exit mining.
The S-1 shows that Ionic is now trying to position itself less as a hashrate growth story and more as a power and land monetization platform. Its Ward County site currently has an installed capacity of 234 MW and the company is looking to expand the property up to 700 MW.
Ionic anticipates capital expenditures of approximately $40 million in the first half of 2027 for the current 234 MW plus the additional 89 MW, and approximately $64 million for a full buildout of 700 MW. It plans to finance the work with available cash and, if necessary, with sales of bitcoins held in cash. Nscale has a right of first refusal on additional capacity in Ward County, while Nscale has granted Microsoft an option for additional power on the property if it becomes available beginning in the second half of 2027.
As of March 31, the company had $34.9 million in cash and cash equivalents, $192.1 million in cryptocurrency assets, and $554.0 million in total assets. Total liabilities were $17.2 million. The filing also states that Ionic had no debt and held 2,815.6 bitcoins in cash as of March 31.
The company’s proposed public listing would be structured as a direct listing on the Nasdaq Global Select Market under the symbol “IOND”, rather than a traditional underwritten IPO. The filing records the resale of up to 10.8 million shares held by the selling shareholders. Ionic said it would not receive proceeds from these sales. Approximately 37.2 million additional outstanding Class A shares may also be freely sold in the public market under Securities Act exemptions related to Celsius’ bankruptcy process.
Prior to listing, Ionic completed a $400 million private placement on June 26, before transaction fees estimated at $16.8 million. The company sold approximately 7.55 million shares of Series A convertible preferred stock at $53 per share, along with three tranches of warrants to purchase approximately 1.01 million shares of Class A stock each at exercise prices of $63.60, $74.20 and $87.45. Preferred stock is converted into Class A common stock upon a Nasdaq listing or other qualifying public market transaction. Investors have agreed not to transfer preferred shares, converted Class A shares, warrants or warrant shares at prices less than $70 per share for six months after listing, subject to limited exceptions.
Ionic was incorporated in January 2024 to acquire the mining assets of Celsius Mining, the mining subsidiary of bankrupt crypto lender Celsius Network. It began operations on February 1, 2024, after acquiring the assets and assuming certain liabilities under the confirmed reorganization plan of Celsius. Ionic initially outsourced a portion of its mining operations to Hut 8 (NASDAQ: HUT), but terminated this master services agreement in December 2024 and took operational control of its sites.
This article was first published in The Energy Mag. The original article can be viewed here. The Energy Mag (formerly The Miner Mag) provides news, data and insight on the connection between energy, computing and markets.
