DarkHorse Technologies, formerly known as Sphere 3D Corp, reduced its bitcoin holdings from $3.26 million at the end of 2025 to zero as of September 30, 2026 The company roughly doubled its c
DarkHorse Technologies, the company formerly known as Sphere 3D Corp and now trading on Nasdaq under the ticker DRK, disclosed in a quarterly earnings release filed November 6, 2026 that it has fully exited its bitcoin position, reducing holdings from $3.26 million at the end of 2025 to exactly zero as of September 30, 2026. The filing describes the move as a strategic decision to reduce bitcoin exposure as the company redirects its focus toward power and data-center infrastructure serving artificial intelligence workloads.
The company’s bitcoin position had already seen volatility before being fully wound down: a $203,000 gain on fair value during the third quarter alone, against a nine-month net loss on the position of $613,000, underscoring that the final exit followed a period of fluctuating, rather than steadily appreciating, returns from the holding. Rather than continuing to ride that volatility, the company chose to exit the position entirely.
In place of bitcoin, DarkHorse has been building out contracted power capacity for data centers, which the filing shows roughly doubled to approximately 100 megawatts following a new contract in Kentucky. That expansion reflects a broader pivot toward serving the computing infrastructure needs of artificial intelligence workloads, a direction a number of companies with roots in bitcoin mining or crypto-adjacent hardware have pursued this year as demand for AI compute capacity has grown.
The company’s name change accompanies a completed business combination with Cathedra Bitcoin that closed June 1, 2026, part of a broader corporate restructuring alongside the strategic pivot away from holding bitcoin directly. Third-quarter revenue came in at $3.0 million against a net loss of $5.8 million, figures that reflect a company still in an earlier, infrastructure-building phase of its new AI-focused strategy rather than one yet generating returns proportional to its expanded power commitments.
Fully exiting a bitcoin treasury to redeploy capital and attention toward AI infrastructure represents one of the more complete reversals among companies that have previously held bitcoin on their balance sheets, standing in sharp contrast to peers still actively accumulating. The full earnings release is filed as an exhibit on SEC EDGAR.
This post first appeared in A Former Storage-Tech Company Zeroes Out Its Bitcoin Treasury to Chase AI Data Centers Instead
