PWCM

• Strategic Transformation & Rebranding

• The company completed a rebranding from LM Funding America to Power Compute, with trading under the new ticker PWCM on NASDAQ starting July 22, 2026, to reflect its new strategic focus.
• The firm is expanding into AI infrastructure and high-performance computing (HPC) hosting, leveraging its existing 26 megawatts of already energized, low-cost power capacity across two industrial sites.
• The company controls 15 megawatts in Calumet, Oklahoma (power priced at ~3.7 cents/kWh) and 11 megawatts in Columbus, Mississippi (power priced at ~3.5 cents/kWh), for a blended average of 3.6 cents/kWh. 22 megawatts of current capacity is used for Bitcoin mining, and all or part of this capacity can be converted to AI/HPC use.

• Early Operational Progress

• A deliberate small-scale proof of concept was launched in July 2026 with the acquisition of one GPU, with capacity listed on the Vast AI compute marketplace. This deployment will not generate material revenue in Q3 2026, and is intended solely to build operational experience and assess real customer demand.
• The firm is currently marketing 4 megawatts of available energized capacity at the Columbus, Mississippi site for co-location and hosting. The full 11 megawatts at this site can be converted to HPC if the firm secures a qualified customer commitment, and would redeploy existing Bitcoin mining capacity elsewhere for such an agreement.
• Management is evaluating modular containerized data center solutions for converting existing power infrastructure to GPU compute, and is engaging with vendors to enable rapid scaling when the business case is confirmed.

• Financial Position & Post-Quarter Update

• Post-quarter end, the firm refinanced and consolidated three existing debt facilities totaling $18 million into a new 30-day revolving Bitcoin-backed facility with ARCH Lending, secured by 307 Bitcoins from the company's treasury. This replaced the prior Galaxy Digital loan and other acquisition debt.
• The new ARCH facility carries a 2% APR interest rate, a substantial reduction from the prior debt's blended 13% annual rate. The structure allows the firm to hold its Bitcoin (rather than sell it to cover obligations) and retain participation in Bitcoin appreciation between contractual floor and ceiling levels, with the ability to reset levels when the facility is renewed.

• Management did not provide formal quarterly or full-year financial guidance for 2026 or future periods. The $20 to $50 million annual revenue estimate cited for a full build-out of the company's 26 megawatts of existing capacity is an illustrative opportunity estimate, not formal guidance or a forecast, and is contingent on securing substantial additional capital, signed customer contracts, and multi-year execution. • The firm confirmed that the proof-of-concept AI deployment generated no revenue in Q2 2026, and any revenue from this deployment in Q3 2026 will be immaterial, with no specific revenue projections offered for the new AI segment.

Power Compute currently operates only one core reportable segment, digital Bitcoin mining: Q2 2026 total revenue was $2.1 million, flat sequentially from Q1 2026 and up 9.8% year-over-year from $1.9 million in Q2 2025. The firm mined 27.9 Bitcoins in Q2 2026, up from 26.1 Bitcoins in Q1 2026 and 18.4 Bitcoins in Q2 2025. Mining margin after curtailment and energy sales was 29% in Q2 2026, up from 24.1% in Q1 2026 but down from 41% in Q2 2025, when average Bitcoin prices were substantially higher. The new AI infrastructure and HPC hosting segment generated no revenue in Q2 2026, and is still in the proof-of-concept stage, so it contributed 0% of total revenue for the quarter.

• The company risks being delisted from the NASDAQ capital market, and faces ongoing liquidity risks, including the need to obtain additional financing on acceptable terms to support expansion of the AI infrastructure business. • The new ARCH lending facility is a short-dated 30-day revolving facility, and there is risk that the company will not be able to renew the facility on acceptable terms when it matures. Substantially all of the company's Bitcoin holdings are pledged as collateral for this facility. • The AI infrastructure business is in an early stage, and the company has limited operating history in this new line of business, creating execution uncertainty. • Bitcoin prices are highly volatile, and the company faces significant risks related to holding Bitcoin and using Bitcoin as collateral for its debt facilities. The company can experience large swings in net income due to fair value gains/losses on digital asset holdings: Q2 2026 had a $3 million fair value loss, compared to a $3.8 million fair value gain in Q2 2025. • Realizing the full projected AI revenue opportunity requires substantial additional capital and signed customer contracts that the company has not yet secured, and execution over multiple years, with no guarantee that any of these conditions will be met. • Preliminary discussions with the Oklahoma power provider for potential capacity expansion may not result in any binding expansion agreement.

• There is some localized anti-data center sentiment in Columbus, Mississippi that could create permitting or community resistance for AI expansion at that site.

Q: It has been a few weeks since the company announced its AI/HPC hosting plan. Have you held initial discussions with potential co-location counterparties, and what is the early status of this outreach? / A: Management confirmed that the company has indeed been in discussions with multiple potential counterparties and is currently evaluating these opportunities. No definitive agreements have been reached yet, so management declined to share further specific details at this early stage.

Q: If the firm chooses to convert existing mining capacity to containerized GPU infrastructure, what does that path look like, and are there third-party parties involved? / A: Container manufacturers for HPC infrastructure require non-disclosure agreements for details of their offerings. There are also potential third-party financial partners willing to support these deployments, given high current demand and pricing for AI compute. No material developments are ready to be announced yet, as the process is still ongoing.

Q: For potential capacity expansion at existing sites, what steps are needed, and is there local pushback to developing AI data centers at these locations? / A: Local sentiment varies by site: the Oklahoma expansion site is located in an unpopulated oil patch, with no community opposition or social risk to expansion. The Columbus, Mississippi site has some minor anti-data center sentiment online, but the firm has already conducted transparent outreach with the local community and newspaper, framing the facility's ability to curtail power usage during peak demand as a benefit to local residents that avoids brownouts, and outreach has gone well so far.