Revenue Collapse And Persistent LossesScale has deteriorated sharply with revenue effectively zero in recent periods and recurring net losses. The collapse reduces operating leverage, impairs margin sustainability, and creates uncertainty about the firm’s core ability to generate durable, repeatable revenue absent material business changes.
Negative Operating Cash Flow / Cash BurnSustained negative operating cash flow consumes equity and limits reinvestment capacity. Even with no debt, ongoing cash burn increases funding and execution risk, constrains capital for miner maintenance or expansion, and raises the probability of dilution or asset sales to fund operations.
Business Exposed To Crypto Network And Price VolatilityMining revenues structurally depend on external variables like coin price and network difficulty that the company cannot control. This creates persistent revenue volatility, complicates multi-quarter planning, and makes margins and cash generation highly sensitive to industry conditions.