C2 Blockchain Swings to $2.46M Net Loss in H1 FY2026 as Crypto Holdings Plunge

C2 Blockchain, Inc., a cryptocurrency mining and staking company, posted a net loss of $2.46 million for the six months ending December 31, 2025, a sharp reversal from a loss of $12,564 in the same period a year earlier. The loss ballooned as the company absorbed $1.13 million in cryptocurrency fair value declines and $189,009 in derivative liability losses, overwhelming negligible revenue of $44. Read more earnings reports.

Revenue for the half-year consisted solely of $44 in staking rewards. The company reported no revenue in the prior-year period. Operating expenses surged to $465,624 from $12,564, driven by $465,624 in general and administrative costs.

The company's operating loss widened to $465,580 from $12,564 a year earlier. Other losses totaling $1.99 million included $676,823 in interest expense, a $189,009 loss on derivative liability changes, and a $1.13 million loss on cryptocurrency fair value adjustments.

For the quarter ending December 31, 2025, C2 Blockchain reported a net loss of $87,485 versus a loss of $4,780 in the prior-year quarter. Operating expenses for the quarter hit $162,691, up from $4,780. The company recorded $744,870 in gains from derivative liability fair value changes, partially offset by $634,961 in cryptocurrency fair value losses and $34,703 in interest expense.

Cash and cash equivalents stood at $1,177 as of December 31, 2025, down from $30 six months earlier. The company raised $2.03 million from common share sales and took on $217,000 in convertible notes during the half-year. It spent $1.66 million on cryptocurrency purchases and $60,590 on a company vehicle.

Total assets reached $659,713 as of December 31, 2025, up from $75,551 at June 30, 2025. Intangible cryptocurrency assets rose to $597,465 from $62,474, while the company added a vehicle valued at $58,570. Liabilities climbed to $1.10 million from $84,000, including $852,645 in derivative liabilities and $137,313 in net convertible loans.

The stockholders' deficit deepened to $440,915 from $8,449 six months earlier. Common shares outstanding increased to 410.5 million from 274.7 million as the company issued 135.8 million shares, including 125.7 million sold for cash and 10 million issued as loan guarantees and financing costs. Accumulated deficit ballooned to $2.76 million from $297,784.

The company burned through $453,201 in operating cash during the half-year, compared to $12,564 in the prior-year period. Investing activities consumed $1.72 million, primarily for cryptocurrency acquisitions. Financing activities generated $2.18 million, predominantly from equity sales.

Basic and diluted net loss per share was $0.01 for the six months ending December 31, 2025, versus $0.00 in the prior-year period, based on a weighted average of 374.5 million shares outstanding.