Ionic Digital (IOND) investor relations material

Strategic transformation and market positioning

• Transitioned from Bitcoin mining to a data center-first model focused on high-performance computing (HPC) and AI, leveraging existing power assets for immediate market entry and monetizing powered sites.

• Controls 822 MW of market-ready or near-ready utility power, with 346 MW currently energized and 323 MW contracted, primarily in West Texas, with a right of first refusal on 377 MW for future expansion at Ward County.

• Secured a 10-year, $2.6 billion triple net lease with Nscale, backed by an NVIDIA guarantee for the first five years and strategic interest from Microsoft, including an option for Microsoft to expand capacity.

• Embedded growth plan includes expanding Ward County to 700 MW and converting four Midland sites from Bitcoin mining to AI data centers, with active blueprints and proven models.

• Positioned to serve the next wave of AI demand, particularly inference and agentic workloads, with a focus on distributed, latency-sensitive enterprise needs and a data center-first leadership team.

Financial foundation and capital allocation

• Operates with a debt-free balance sheet and $630 million in liquidity, bolstered by a recent $400 million private placement at a $2.4 billion post-money valuation from tier-1 investors.

• Expects $251 million in annual contracted revenue at full ramp, with operating margins of 98%-99% due to the capital-light, triple net lease structure, and robust site-level EBITDA margins of 68%-72% projected for 2026.

• Revenue mix shifted from 95% mining in 2025 to 85% digital infrastructure leasing in Q1 2026 as Nscale lease revenue recognition began, with gross margin rising from 38% to 88%.

• Capital allocation priorities: expand Ward County, convert Midland, pursue disciplined acquisitions in major metros for sub-100 MW sites, and reinvest cash flow for growth, with bitcoin treasury managed to support growth.

• Shareholder returns expected to focus on share repurchases rather than dividends in the near term.

Governance and public market readiness

• Seven-member board with six independent directors; single-class share structure ensures alignment between voting power and economic interest, with independent audit, compensation, and nominating/governance committees.

• Direct listing on Nasdaq (ticker: IOND) prioritizes liquidity for legacy shareholders without dilution, enabled by strong funding and no need to raise capital.

• Management and board have extensive public company and capital markets experience, with robust internal controls, SOX compliance, and audit-ready financials.

• Chair/CEO roles are split, and shareholder engagement includes one vote per share and the ability for holders of 25% of voting power to call special meetings.