# Q1

#CapitalFlowsBackToAltcoins High-Performance Computing (HPC).
The headline loss of $1.3 billion is significant, but a deeper look at the balance sheet reveals that much of this is driven by accounting standards rather than a collapse in operational efficiency.
## Q1 2026 Financial Snapshot## Deconstructing the $1.3 Billion Loss
It is important to differentiate between "cash burn" and "accounting loss." The staggering deficit this quarter was primarily fueled by:
Mark-to-Market Adjustments: Approximately $1 billion of the loss stems from non-cash fair value adjustments on their Bitcoin holdin