DTCX

Business Context and Reporting Period

Datacentrex, Inc. (DTCX) filed its Form 10-Q for the quarterly period ended March 31, 2026. The Company, formerly Thumzup Media Corporation, completed a reverse recapitalization merger with Dogehash Technologies Inc. in December 2025. Datacentrex operates as a digital infrastructure company focused on Scrypt-based proof-of-work mining (primarily Dogecoin and Litecoin) and utilizes a hashrate marketplace model where settlement is typically received in Bitcoin. As of March 31, 2026, the Company operated a fleet of 3,094 Scrypt ASIC miners across four domestic colocation facilities.

Key Financial Metrics

Adjusted EBITDA: The Company reported an Adjusted EBITDA loss of $(1,708,382) for Q1 2026, compared to $(119,155) in Q1 2025.

Material Changes vs. Prior Period

• Revenue Growth: Revenue increased by approximately 1,265% year-over-year, driven by the expansion of the mining fleet from initial deployment in 2025 to 3,094 units in 2026 and the transition to a hashrate marketplace monetization model.
• Expense Expansion: Operating expenses surged by 1,311% to $5.53 million. This was primarily due to a $3.1 million increase in depreciation and amortization (reflecting the larger in-service fleet) and $1.16 million in stock-based compensation, which was non-existent in the prior year.
• Digital Asset Volatility: The Company recognized a net unrealized and realized loss on digital assets of $1.21 million in Q1 2026, compared to a negligible loss of $899 in Q1 2025. This loss significantly impacted the bottom line despite operational revenue growth.
• Liquidity Position: Cash balances increased dramatically from $193,032 in Q1 2025 to $42.5 million in Q1 2026, largely due to a public offering closed in March 2026.

Guidance, Outlook, and Risks

Capital Raise: On March 26, 2026, the Company closed a public offering raising approximately $20.2 million in gross proceeds (4.51 million common shares and 5.575 million pre-funded warrants). As of March 31, 2026, $11.15 million related to the pre-funded warrants was recorded as a receivable and subsequently received in April 2026.

Operational Outlook: Management expects future treasury concentration to favor Bitcoin over time. The Company maintains a stable fleet of 3,094 miners with no material additions or removals in Q1 2026. Strategic focus includes potential vertical integration into power ownership to improve margins.

Risks and Contingencies:

• Market Volatility: Revenue and asset valuations are highly sensitive to digital asset price fluctuations and network difficulty adjustments.
• Infrastructure Competition: Rising demand for data center power from AI and High-Performance Computing (HPC) sectors may increase colocation costs or reduce availability.
• Regulatory and Tariff Risks: Uncertainty regarding U.S. tariffs on Chinese-manufactured ASIC hardware and evolving digital asset regulations pose significant risks to supply chains and operations.
• Related Party Transactions: The Company entered into a services agreement with IRTH Communications, LLC (controlled by Robert Haag), paying $40,000 in Q1 2026 and granting stock options.

Investor Verification Checklist

• Pre-Funded Warrant Proceeds: Verify the receipt of the $11.15 million in warrant proceeds recorded as a receivable at quarter-end (confirmed received April 2, 2026).
• Digital Asset Valuation: Review the fair value methodology for the $5.36 million digital asset holding, noting the $1.21 million unrealized loss recognized in the period.
• Depreciation Policy: Confirm the two-year useful life assigned to mining equipment, which drives the significant non-cash depreciation expense ($3.29 million).
• Colocation Costs: Assess the sustainability of the $1.67 million cost of revenue (primarily power and hosting) relative to current hashrate revenue rates.
• Preferred Stock Terms: Review the Second Amended and Restated Certificate of Designation for Series A Preferred Stock, specifically the conversion rate adjustment to 23 shares of common stock and the $2.00 reference rate.