Avax One Technology Ltd. Common Shares (NASDAQ:AVX) said its first quarter marked a transition period as the company broadens its business from digital assets and Bitcoin mining into AI and high-performance computing infrastructure, while continuing to build its Avalanche-focused treasury strategy.
On the company’s earnings call for the quarter ended March 31, 2026, Chief Executive Officer Jolie Kahn said Avax One is repositioning itself as a “power-first digital infrastructure company,” with a strategy centered on behind-the-meter power assets, modular AI and HPC data centers, Bitcoin mining operations and an Avalanche digital-asset treasury.
Alberta AI and HPC project remains central to strategy
Avax One is advancing its first 10-megawatt, Tier 3-ready critical power facility in Alberta, Canada. Kahn said the site is designed around dedicated flared natural gas generation, battery energy storage integration and modular microgrid architecture.
The company previously engaged BlueFlare Energy Solutions to support front-end engineering and design work and recently selected Ascend Consulting as project engineer. Kahn said Ascend will lead engineering and design as the project moves from conceptual planning into detailed engineering and deliverables related to the Alberta Electric System Operator.
Kahn said the project remains on schedule for deployment readiness during the first quarter of 2027. She described Alberta as an attractive power and infrastructure market, citing demand for AI and HPC deployments in the region.
During the question-and-answer session, Kahn said Avax One is considering two potential paths for the Alberta development: starting from the ground up or acquiring a facility where some permitting and engineering work is already complete. She said the latter could save approximately two to four months. She added that if the company begins from scratch, permitting and engineering would occur first, followed by construction and tenant discussions.
Kahn said the company’s goal is to have its first microgrid center operating with a tenant by the end of the first quarter of next year. She also said the model could potentially be repeated in parallel across multiple sites if financing and suitable locations are available.
Management sees opportunity outside hyperscale data centers
Kahn said Avax One’s focus is on workloads in the range of one to 50 megawatts that require dedicated capacity but may be underserved by hyperscale economics and traditional colocation providers. She said the modular approach is intended to allow the company to scale in phases aligned with customer demand and capital efficiency, rather than pursue multibillion-dollar campuses.
When asked whether Avax One intends to operate sites for its own use, Kahn said the company views its model as an alternative to hyperscalers and does not plan to own sites for its own purposes. Instead, she said the goal is to develop sites and bring in tenants that use the capacity for AI, HPC, compute or related applications.
On the power side, Kahn said the company expects the facility to operate behind the meter using flared natural gas, with redundancy from a battery energy storage system and the ability to connect to the grid in rare circumstances if needed. She said further details, including any water requirements, would come from engineering work led by Ascend.
Revenue rises on staking and Bitcoin mining
Chief Financial Officer Chris Polimeni said total revenue for the first quarter of 2026 rose to $2.5 million from approximately $300,000 in the prior-year quarter. The increase was primarily driven by the company’s Avalanche treasury strategy, which generated approximately $1.9 million in staking rewards, along with about $600,000 in revenue from Bitcoin mining.
Total operating expenses were $47.1 million, compared with $2.1 million in the first quarter of 2025. Polimeni said the 2026 quarter included $43.3 million in non-cash charges, including:
- $36.3 million in unrealized losses from changes in the market value of digital assets;
- $5.3 million in losses on digital asset transactions related to deployment of AVAX tokens into Treehouse network tAVAX tokens;
- $1.1 million in impairment of liquid staking tokens;
- $300,000 of depreciation and amortization expense;
- $300,000 tied to vesting of shares issued in 2025 to certain board advisors, board members and executives.
The company also incurred approximately $200,000 in one-time, non-recurring charges related to reorganizing and restructuring back-office operations, including severance, stay bonuses and duplicative costs.
Polimeni said that after adjusting for non-cash charges and one-time costs, adjusted operating loss was $1.1 million. Net loss was $46.4 million, or $0.48 per diluted share, compared with a net loss of approximately $145,000, or $10.50 per diluted share, in the prior-year quarter. Adjusted net loss was $2.9 million, or $0.03 per diluted share.
Avalanche treasury remains a strategic pillar
Kahn said the company continues to view its Avalanche treasury as a core part of the business, describing it as a source of yield generation, ecosystem alignment and strategic optionality. She cited institutional and public-sector activity on Avalanche, including tokenized real-world assets, fund tokenization, stablecoin settlement support and government title digitization, as examples of the network’s growing role in financial infrastructure.
Polimeni said Avax One held approximately 14 million AVAX tokens as of March 31, with a net value of approximately $125 million. Since launching its digital asset treasury strategy in November, the company has generated approximately $2.7 million in staking revenue, representing an annualized yield of about 6%.
In response to analyst questions, Polimeni said Avax One has deployed 830,000 Avalanche tokens into Treehouse, a DeFi protocol using the BENQI platform. He said the strategy is designed to generate additional yield through interest rate arbitrage involving sAVAX and tAVAX, with the tokens converted back to AVAX when unwound.
Asked how the Avalanche treasury connects to the data center build-out, Kahn said the company can operate the two strategies in parallel while exploring future integration. She said Avalanche protocols can run with relatively small amounts of power compared with some other blockchain protocols, which could allow Avax One to run protocols within its planned 10-megawatt microgrid data centers.
Liquidity, capital allocation and Nasdaq compliance
Polimeni said Avax One had $16.5 million in cash and cash equivalents at quarter-end. Including $5.4 million in restricted cash and a $5 million escrow receivable balance, total liquidity was $26.9 million, compared with approximately $27.5 million at the end of December 2025. He said management believes the balance provides roughly three years of operating runway without external capital and without considering company revenue.
Kahn said Bitcoin mining remains the company’s legacy business and may continue to provide short-term cash flow while the data center strategy develops. She said capital allocation decisions will be reviewed with the board on a case-by-case basis, with the first data center as a near-term priority.
Kahn also addressed the company’s Nasdaq listing status, saying the Nasdaq Listing Qualifications Panel granted Avax One an exception period to regain compliance with the minimum bid price requirement. She said the company has until July 6 to maintain a closing bid price above $1 for 10 consecutive days and is seeking shareholder approval for a reverse stock split at its annual meeting later this month.
In closing remarks, Kahn said Avax One remains focused on execution across AI and HPC infrastructure and the Avalanche-based on-chain economy, adding that the company expects to update investors on its progress during its next earnings call in August.
About Avax One Technology Ltd. Common Shares (NASDAQ:AVX)
AVAX One Technology Ltd is a public company offering investors regulated access to the Avalanche (AVAX) ecosystem. By integrating the reliability of U.S. capital markets with the growth potential of decentralized finance, it seeks to create a bridge between traditional and digital finance. It focuses on building a digital-asset treasury, fostering innovation, and investing in decentralized financial technologies that benefit from the Avalanche network.
