Ionic Digital raised $400 million in a private placement on June 26, positioning the company for a direct listing on Nasdaq as its revenue model shifts decisively toward AI infrastructure. The company reported $51.4 million in revenue for the first quarter of 2026, with digital infrastructure leasing accounting for $44.0 million compared to just $7.4 million from Bitcoin mining. A year earlier, Ionic's revenue came entirely from mining, which generated $41.1 million in the first quarter of 2025. The revenue shift reflects Ionic's decision to repurpose its flagship Ward County site in West Texas for AI and high-performance computing under a 126-month lease with Nscale, committing 234 megawatts of current power capacity and representing about $1.95 billion of contracted revenue. Ionic was incorporated in January 2024 to acquire mining assets from Celsius Mining, the affiliate of bankrupt crypto lender Celsius Network, and began operations on Feb. 1, 2024.
Ionic Digital Enters 126-Month Nscale Lease for 234 MW at Ward County Site
Ionic entered into a 126-month "triple net" lease with Nscale in October 2025, committing the full 234 megawatts of current power capacity at Ward County. The company received its first payment in November 2025, while monthly fixed lease payments are scheduled to begin in August 2026. Payments under the lease represent about $1.95 billion of contracted revenue.
Ionic amended the Nscale lease in February 2026 to add a contractual obligation for Nscale to lease another 89 MW if the capacity becomes available, at the same price per megawatt. If Ionic secures that additional capacity in the second half of 2027, total contracted revenue under the Nscale agreement would rise to about $2.6 billion. The company cautioned that the added power remains subject to regulatory approval and that Nscale faces no penalty if Ionic cannot deliver it.
Nscale has a right of first refusal on additional Ward County capacity, while Nscale has granted Microsoft an option for additional power at the property if it becomes available starting in the second half of 2027.
Bitcoin Mining Operations Scaled Back to 2.0 EH/s in Q1 2026
As of March 31, the company owned about 120,600 miners with a total nameplate hashrate of 12.2 EH/s, but only about 23,200 miners were active, contributing 2.0 EH/s. That compares with about 116,500 active miners and 8.9 EH/s of contributed hashrate a year earlier.
The company mined 95.7 bitcoin during the first quarter of 2026 and sold none, compared with 1,331 bitcoin mined during 2025. In 2025, Ionic sold 1,009 bitcoin at an average price of $100,547, generating $101.5 million in gross proceeds.
Ionic said it is consolidating what remains of its mining operations around four Midland-area sites in Texas: East Stiles, Garden City, Rebel and Stiles. Together, the sites represent 112 MW of current power capacity across about 59.5 acres, with another 10 MW expected at East Stiles in 2027. The company said it intends to bring those sites to market for HPC and AI development and may eventually wind down bitcoin mining over time, although it has not set a timetable or committed to exiting mining.
Ionic Digital Plans $40M to $64M Capital Spending for Site Expansion
Ionic expects capital spending of about $40 million through the first half of 2027 for the current 234 MW plus the additional 89 MW, and about $64 million for a full 700 MW buildout. It plans to fund the work with cash on hand and, if needed, sales of bitcoin held in treasury. The company is seeking to expand the Ward County property to as much as 700 MW.
As of March 31, the company had $34.9 million of cash and cash equivalents, $192.1 million of cryptocurrency assets and $554.0 million of total assets. Total liabilities were $17.2 million. The filing also said Ionic had no debt and held 2,815.6 bitcoin in treasury as of March 31.
Ionic Digital Completes $400M Private Placement on June 26
Ionic completed a $400 million private placement on June 26, before an estimated $16.8 million in transaction fees. The company sold about 7.55 million shares of Series A convertible preferred stock at $53 per share, along with three tranches of warrants to buy about 1.01 million Class A shares each at exercise prices of $63.60, $74.20 and $87.45. The preferred shares convert into Class A common stock upon a Nasdaq listing or other qualifying public-market transaction. Investors agreed not to transfer the preferred stock, the converted Class A shares, the warrants or warrant shares at prices below $70 per share for six months after listing, subject to limited exceptions.
Ionic Digital Registers Direct Listing on Nasdaq Under Ticker IOND
The company's proposed public listing would be structured as a direct listing on the Nasdaq Global Select Market under the ticker "IOND," rather than a traditional underwritten IPO. The filing registers the resale of up to 10.8 million shares held by selling stockholders. Ionic said it will not receive proceeds from those sales. About 37.2 million additional outstanding Class A shares may also be freely sold in the public market under securities-law exemptions tied to the Celsius bankruptcy process.
Ionic initially outsourced parts of its mining operations to Hut 8, but terminated that master services agreement in December 2024 and took operational control of its sites.
FAQ
What did Ionic Digital report for Q1 2026 revenue?
Ionic Digital reported $51.4 million in revenue for the first quarter of 2026, with digital infrastructure leasing accounting for $44.0 million and Bitcoin mining contributing $7.4 million. A year earlier, Ionic's revenue came entirely from mining, which generated $41.1 million in the first quarter of 2025.
How much contracted revenue does the Nscale lease represent?
The 126-month lease with Nscale for 234 megawatts at Ward County represents about $1.95 billion of contracted revenue. Ionic amended the lease in February 2026 to add a contractual obligation for Nscale to lease another 89 MW if available, which would raise total contracted revenue to about $2.6 billion if Ionic secures the additional capacity in the second half of 2027.
When did Ionic Digital complete its $400 million private placement?
Ionic Digital completed a $400 million private placement on June 26, before an estimated $16.8 million in transaction fees. The company sold about 7.55 million shares of Series A convertible preferred stock at $53 per share, along with warrants to buy Class A shares at exercise prices of $63.60, $74.20 and $87.45.
