Big Digital Energy, Inc. Common Stock (NASDAQ:BGDE) reported higher third-quarter revenue as it advanced plans to develop artificial intelligence infrastructure at its Hood County, Texas, site. Executives said the project still needs definitive agreements, financing and additional engineering before commercial deployment.
Revenue rose to approximately $8.7 million from $6.2 million in the second quarter, an increase of 41%, Chief Operating Officer Cody Smith said on the company’s Nov. 5 earnings call. The company is using Bitcoin mining to generate revenue from its existing power capacity while pursuing AI and high-performance computing projects.
Big Digital had approximately 169 megawatts of energized capacity across its operating portfolio, Smith said. Chief Executive Officer Phil Stanley said the company is also evaluating opportunities within an affiliated Six Thirty AI development pipeline of approximately 584 megawatts, though those assets are not part of Big Digital’s current portfolio.
Hood County Moves Toward Development
Big Digital’s Hood County site is held by Texas Load House, a 50/50 joint venture with 10NetZero. The site has approximately 17 megawatts of energized capacity and a potential path to 111 megawatts, executives said.
Texas Load House signed a nonbinding letter of intent with Tensor IQ covering up to 17 megawatts of gross capacity. The framework contemplates an initial deployment of nearly 8,000 NVIDIA B300 graphics processing units, while the current phase-one design calls for 6,336 GPUs, Stanley said.
Executive Chairman Josh Kilgore said the first build-out would involve retooling an existing industrial building at the site. He described an initial deployment of about 6,300 to 6,400 GPUs, with an additional set of roughly 1,000 in the initial build-out.
Based on indicative terms and assuming full utilization, the proposed arrangement could generate more than $550 million in aggregate powered lease-related revenue for Texas Load House over an initial 15-year term, Stanley said. If two five-year extensions were exercised on the same indicative economics, that figure could reach approximately $1.1 billion over 25 years. Those figures are projections for the joint venture, not signed contract revenue.
Stanley stressed that the letter of intent is not a signed customer contract. Remaining work includes commercial terms, customer diligence and credit support, engineering, financing, approvals and definitive documentation. He said the company was in discussions with prospective offtake partners and expected to execute a lease by the end of the fourth quarter.
The company gave differing deployment targets during the call. In his prepared remarks, Stanley said planning assumptions targeted availability in the third quarter of 2027. During the question-and-answer session, he described availability in the second quarter of 2027 as a target rather than a commitment.
Stanley said an approved load study would bring the site to 74 megawatts, while additional capacity could come from behind-the-meter generation using a natural gas pipeline on the property. Kilgore said the electrical source strategy remained under evaluation and that expansion was subject to validation by the Electric Reliability Council of Texas.
Cash Declines as Operating Burn Improves
Big Digital ended September with approximately $3.1 million in cash, down from $16.3 million at June 30. Kilgore attributed the decline primarily to the roughly $10 million Hood County acquisition through Texas Load House.
The company also lent its joint venture partner $4.9 million to fund part of its acquisition contribution. Smith said 10NetZero repaid the loan in full, with interest, in October and retained its 50% ownership stake.
Stockholders’ equity fell to approximately $8.5 million from $12.4 million at the end of June. Smith said Nasdaq requires the company to maintain at least $5 million in stockholders’ equity each quarter for a 12-month monitoring period beginning with the quarter ended June 30. He said the June result satisfied the first test and the September figure was the next measurement.
Kilgore said average monthly cash burn from operating activities fell to approximately $850,000 in the third quarter from $3.4 million during the first six months of the year. Smith said the company’s goal is to reach cash break-even by year-end.
Legacy matters involving the Marshall loan, W Capital loan and Celsius remain in litigation, Smith said. He declined to characterize their outcomes before resolution.
Financing and Share Authorization in Focus
Executives said development will require substantial capital. Big Digital is considering project-level debt, joint venture and strategic capital, customer-backed structures and institutional financing, Kilgore said.
Kilgore said financing conditions had become more difficult over the preceding 90 days, but lenders remained interested in projects with signed leases. He said models the company was working on contemplated yields on cost of 25%, 30% or 40%, depending on factors including location, clients and construction type.
Asked about an amended proxy contemplating authorization of up to 600 million shares, Kilgore said Big Digital had fewer than 6.5 million common shares outstanding and 90 million authorized as of September 30. He said the company’s Series D financing requires it to reserve shares for conversions and warrant exercises and to seek shareholder approval for an increase in authorized shares by November 14. Authorization does not itself mean shares are issued, he noted.
Stanley said any acquisition of affiliated assets would undergo third-party valuation, independent director review and recusal of principals with an interest in the assets. He added that the board had engaged outside legal counsel and that a special transaction committee would assess the economics of such a deal.
About Big Digital Energy, Inc. Common Stock (NASDAQ:BGDE)
Mawson Infrastructure Group Inc develops and operates digital infrastructure for digital currency on the bitcoin blockchain network in the United States. It engages in digital currency or bitcoin self-mining, customer co-location and related services, and energy markets, as well as operates data center facilities. The company is based in Midland, Pennsylvania.
