AVAX One drops Alberta data-centre plan to focus on AVAX treasury
The Alberta proposal carried an estimated US$30M to US$35M cost, while token revaluation drove the quarterly profit.
Julian Okafor
A proposed 10-megawatt Alberta computing project has been dropped as its sponsor concentrates capital on a single blockchain token. AVAX One Technology Ltd. NASDAQAVX, an Avalanche-token treasury and bitcoin miner, said in its Nov. 12 results it was ending modular data-centre plans, including an Alberta proposal previously estimated at US$30 million to US$35 million.
The company reported holding 14,170,184 AVAX tokens and equivalents at Sept. 30. Approximately 99.7 per cent was actively staked, generating a reported annualized yield of about 5.85 per cent. The strategic review directs capital and resources toward that treasury rather than the proposed computing expansion.
For the quarter ended Sept. 30, net income was US$49.9 million, including a US$55.1 million unrealized gain on digital assets. Revenue was US$2.4 million, so the reported profit depended heavily on changes in token valuations.
AVAX One shares NASDAQAVX closed at US$4.19 on Nasdaq at 4:00 p.m. EST on Nov. 12. That close preceded the company's results release at 4:05 p.m. EST and therefore does not measure the market's response to the decision.
Alberta Plan Targeted Delivery In Early 2027
The abandoned Alberta proposal had targeted powered land ready for an end customer's deployment in the first quarter of 2027. AVAX One's April 20 announcement described a letter of intent, with a definitive agreement still to be negotiated within 30 days.
That proposal distinguished at least 10 megawatts of total site power from at least seven megawatts of mission-critical power. It prioritized existing natural-gas generation assets near Calgary, with grid interconnection where viable and backup systems supporting the planned power architecture.
The April 20 estimate put project costs at approximately US$30 million to US$35 million, with payments tied to milestones. Those milestones included site selection, feasibility, permitting, procurement, construction and commissioning, rather than a single payment for a completed data centre.
The April 20 estimate represents planned project expenditure rather than a quantified cash saving. AVAX One reported US$8.5 million in cash and cash equivalents at Sept. 30.
Token Gains Exceeded Quarterly Net Income
For the quarter ended Sept. 30, AVAX One reported revenue up from approximately US$526,000 a year earlier. Staking rewards contributed US$1.8 million, while bitcoin mining remained another revenue source despite the decision to abandon modular data-centre development.
The company reported approximately US$4.7 million in adjusted operating expenses for the quarter ended Sept. 30, excluding digital-asset valuation changes and transaction losses. It separately disclosed a US$483,000 realized loss on digital-asset transactions during that period.
The US$55.1 million unrealized gain for the quarter ended Sept. 30 reflected a change in the market value of digital assets, rather than token-sale proceeds. Holding and staking AVAX leaves shareholders exposed to token-price changes as well as the income generated by staking.
In the Nov. 12 results, the company reiterated its 2026 revenue forecast of US$11 million to US$12 million under its stated current-spot-price scenario. That scenario assumes AVAX at US$9 and bitcoin at US$70,000. Those are assumptions in the Nov. 12 guidance, rather than independently verified market quotations.
Debt Elimination Also Involved Share Conversions
AVAX One said it eliminated more than US$14.9 million of convertible debt in the quarter ended Sept. 30 through repayments, conversions and redemptions. The amount therefore represents a reduction in outstanding debt across several mechanisms.
"During the quarter, we eliminated more than $14.9 million of outstanding convertible debt and subsequently eliminated the remaining approximately $970,000 after quarter end," interim chief executive and chief operating officer Pete Wylie said in the Nov. 12 release.
Outstanding convertible debt was zero as of Nov. 3, according to the company. That disclosure concerns convertible debt specifically and does not establish that the company had no other liabilities.
The Nov. 12 release also reported October repurchases of approximately 710,000 shares. The average purchase price was US$5.46, including fees and commissions. These purchases occurred after the quarter-end cash measurement.
Bit Digital, Inc. NASDAQBTBT, an Ethereum treasury and AI infrastructure investor, reported US$27.1 million in third-quarter revenue on Nov. 12. Cloud services contributed US$18.1 million, illustrating the operating revenue alongside token exposure at a company retaining both strategies.
Mugglehead's Nov. 12 coverage of Bit Digital's ether holdings and computing investment traced that combination through its quarterly results. AVAX One's decision instead removes its proposed Alberta development from its capital-allocation plans.
Read more: Bit Digital reports third-quarter revenue and cash
The next reporting period ends on Dec. 31, 2026, AVAX One's fiscal year-end. That period will test its full-year revenue forecast as capital allocation shifts toward the AVAX treasury.
