Axe Compute Inc.

Axe Compute Inc. (NASDAQ: AGPU) has undergone a significant strategic shift in late 2025, expanding its business to include a Compute Services and Treasury Management segment, which is now the priority and management's focus. This new segment aims to provide customers with access to graphics processing unit (GPU) compute capacity for artificial intelligence (AI) and other high-performance computing workloads through a distributed network model, primarily utilizing infrastructure made available by the Aethir network. The company also adopted a digital asset treasury strategy focused on the Aethir token (ATH), the native utility token of the Aethir network, to support its participation in the Aethir ecosystem. The global compute market is estimated to be valued at over $1 trillion in 2026 ¹, with a compound annual growth rate of approximately 9.9% ², and is expected to nearly double in value by 2032 ³. Specifically, the AI compute market is anticipated to reach a total value in excess of $1 trillion by 2034 ⁴, with worldwide AI spending forecast to total $2.52 trillion in 2026 ⁵. The company believes the current supply-demand imbalance in the GPU market, characterized by North American data center vacancy rates at a record low of 1.6% ⁶ and average GPU procurement lead times of 36 to 52 weeks ⁷, creates a significant opportunity.

The company's competitive position in the Compute Services and Treasury Management segment is supported by its globally distributed network, 48-hour provisioning capability, flexible contract structures, and an asset-light operating model. The integration of ATH token settlement also creates an additional economic incentive structure. In its legacy Drug Discovery Services segment, the company believes its proprietary AI-driven PEDAL™ platform, which leverages a biobank of over 150,000+ tumor samples ⁸ and multi-omic historical tumor data, provides a competitive advantage and a barrier to entry for competitors in the drug response prediction space. The company also highlights its 3D modeling technology, which accurately reconstructs the organ-specific 3D tissue microenvironment.

The core business model of Axe Compute Inc. revolves around two operating segments: Compute Services and Treasury Management, and Drug Discovery Services. The Compute Services segment generates revenue primarily through reserved GPU capacity contracts, where customers commit to capacity on a prepaid basis, typically under 12- to 36-month terms ⁹. Pricing is structured on a per-GPU per-hour basis ¹⁰. The Treasury Management strategy involves acquiring and holding ATH, staking the majority of these holdings to earn yield, purchasing locked ATH at a discount, and selling ATH to fund working capital and general corporate needs. The Drug Discovery Services segment generates revenue from Contract Research Organization (CRO) services related to the development of 3D tumor-specific in vitro models for oncology drug discovery and research, with revenue generally recognized when data and reports are provided to customers. This segment also includes clinical diagnostic testing services through its Helomics Corporation subsidiary, offering tumor profiling and biomarker tests for gynecological cancers.

The Compute Services and Treasury Management segment provides enterprises, AI developers, and large-scale workload operators with on-demand access to high-performance GPU compute infrastructure through a network encompassing global locations and over 435,000 GPUs ¹¹. The company operates on an asset-light model, not owning or operating physical data centers, and integrates ATH tokens as a settlement mechanism, earning an additional 20% revenue in the form of additional ATH when purchasing new ATH in the open market ¹². As of December 31, 2025, the company held approximately 2.837 billion unlocked ATH with a fair market value of $24.4 million ¹³, and a right to receive 3.511 billion locked ATH with a fair market value of $15.5 million ¹⁴ after applying a discount for lack of transferability and control.

The Drug Discovery Services segment, also referred to as the 'legacy' business, focuses on supporting the discovery and development of optimal cancer therapies. It utilizes the proprietary AI-driven PEDAL™ platform, which combines a biobank of over 150,000+ tumor samples ¹⁵ with AI active machine learning and multi-omic historical tumor data to build predictive models of tumor drug response. This segment also develops tumor-specific 3D cell culture models and offers clinical diagnostic testing services, including Tumor Drug Response Testing (ChemoFx™) and Genomic Profiling Testing (BioSpeciFx), through its Helomics Corporation subsidiary. The company announced in February 2026 that it is exploring strategic alternatives for this business ¹⁶.

For the fiscal year ended December 31, 2025, Axe Compute Inc. reported total revenue of $125,284 ¹⁷, an increase from $84,812 ¹⁸ in 2024. The company recorded a significant loss on digital assets of $152,490,550 ¹⁹ in 2025, compared to no such losses in 2024. Cost of revenues was $72,622 ²⁰ in 2025, a decrease from $78,285 ²¹ in 2024. General and administrative expenses increased by $18,688,561 ²² to $25,924,358 ²³ in 2025 from $7,235,797 ²⁴ in 2024, primarily due to a $16.5 million ²⁵ increase in stock-based compensation, of which $15.4 million ²⁶ related to warrants issued for the Strategic Advisor Agreement. Research and development expenses decreased slightly to $2,147,222 ²⁷ in 2025 from $2,241,461 ²⁸ in 2024. Sales and marketing expenses decreased by $426,952 ²⁹ to $406,247 ³⁰ in 2025 from $833,199 ³¹ in 2024. The total operating loss for 2025 was $180,915,715 ³², significantly higher than the $10,303,930 ³³ operating loss in 2024. Other income (expense) resulted in a net expense of $51,937,932 ³⁴ in 2025, primarily due to a $52,735,000 ³⁵ loss related to the change in fair value of the derivative instrument from the Crypto PIPE. Net loss for 2025 was $233,095,203 ³⁶, compared to $12,664,388 ³⁷ in 2024. Diluted EPS was $(13.37) ³⁸ in 2025, compared to $(34.83) ³⁹ in 2024. Cash and cash equivalents as of December 31, 2025, were $10,790,850 ⁴⁰, and total assets were $52,888,346 ⁴¹. Total liabilities were $5,171,391 ⁴². The company had an accumulated deficit of $413,521,474 ⁴³ as of December 31, 2025.

Comparing year-over-year, revenue increased by $40,472 ⁴⁴ from 2024 to 2025, primarily due to the completion of a tumor-specific 3D model in 2025. The most significant shift in business mix and financial performance was the adoption of the digital asset treasury strategy in September 2025, leading to a $152,490,550 ⁴⁵ loss on digital assets in 2025, which was not present in 2024. This also contributed to a substantial increase in general and administrative expenses due to stock-based compensation related to warrants for the Strategic Advisor Agreement. The total operating loss widened significantly from $10,303,930 ⁴⁶ in 2024 to $180,915,715 ⁴⁷ in 2025. Net cash used in operating activities of continuing operations decreased slightly to $9,876,039 ⁴⁸ in 2025 from $10,103,084 ⁴⁹ in 2024, primarily due to lower cash operating losses and decreases in cash used in working capital. Net cash used in investing activities of continuing operations increased substantially to $32,616,819 ⁵⁰ in 2025 due to digital asset purchases, compared to $9,510 ⁵¹ in 2024. Net cash provided by financing activities of continuing operations increased to $52,006,573 ⁵² in 2025 from $3,939,194 ⁵³ in 2024, driven by the Cash PIPE Offering and other equity issuances.

Significant operational developments during the period include the sale of assets related to its wholly owned subsidiary, Skyline Medical Inc. (formerly the Eagan operating segment), to DeRoyal Industries, Inc. on March 20, 2025 ⁵⁴. The company completed a one-for-fifteen (1-for-15) reverse stock split on September 29, 2025, effective September 30, 2025 ⁵⁵. On October 8, 2025, the company closed two private investment in public equity (PIPE) transactions totaling approximately $343.5 million ⁵⁶ to support its digital asset treasury strategy. This included approximately $50.8 million ⁵⁷ in cash and approximately $173.3 million ⁵⁸ in discounted value of in-kind contributions of locked and unlocked ATH. The company changed its corporate name from Predictive Oncology Inc. to Axe Compute Inc. on December 11, 2025 ⁵⁹, and its common stock began trading under the ticker symbol "AGPU" on December 12, 2025 ⁶⁰. In February 2026, the company announced it is exploring strategic alternatives for its Legacy Business ⁶¹ and appointed Christopher Miglino as Chief Executive Officer, effective February 9, 2026 ⁶².

Management expects operating losses to continue in the near term while the company scales its compute services and Treasury Strategy. The recent strategic pivot into compute services and adoption of the Treasury Strategy make prediction of future operating results difficult, and period-to-period comparisons of operating results should not be relied on as predictive of future results.

The company's primary growth area is its Compute Services and Treasury Management segment, which provides access to GPU compute capacity for AI and other high-performance computing workloads. The global compute market is projected to reach approximately $2.4 to $3.3 trillion by 2030 to 2033 ⁶³, representing compound annual growth rates of approximately 16% to 20% ⁶⁴. Worldwide AI spending is forecast to total $2.52 trillion in 2026 ⁶⁵, a 44% increase year-over-year ⁶⁶. The company's strategy involves acquiring additional ATH in the open market and earning yield on its ATH treasury holdings by engaging in ATH staking and other activities. The company also aims to purchase locked ATH at a discount to the current spot price and sell ATH holdings to fund working capital and general corporate needs. In March 2026, the company executed contracts with several enterprise customers to provide access to remote GPU compute capacity on an hourly basis, with service periods ranging from one month to approximately two years ⁶⁷.

Regarding its operational outlook, the company's asset-light operating model for Compute Services allows it to scale compute capacity in response to customer demand without material capital expenditure. The company depends on the availability of high-performance GPU hardware, primarily from NVIDIA Corporation, and aims to maintain relationships with multiple hardware and infrastructure providers across its network of over 200 locations ⁶⁸ to mitigate single-supplier and single-facility concentration risk. The company had 13 full-time employees and 1 part-time employee as of December 31, 2025 ⁶⁹.

For capital allocation, the company intends to utilize proceeds from equity and debt financings to purchase and hold ATH. As of December 31, 2025, approximately $18,330,000 ⁷⁰ remained available for sales of common stock under its At The Market (ATM) Sales Agreement. Additionally, the company has the right to sell up to $10 million ⁷¹ in shares of its common stock to Yorkville under a Standby Equity Purchase Agreement (SEPA) ⁷². The company currently intends to retain any future earnings to support the development and expansion of its business and does not anticipate paying cash dividends in the foreseeable future.

Management has flagged several structural headwinds and execution risks. The success of its digital asset treasury strategy is uncertain and requires specialized employee skillsets and operational, technical, and compliance infrastructure. The Aethir network evolves rapidly, and frequent upgrades and protocol changes may require significant adjustments and unanticipated costs. The concentration of ATH holdings limits risk mitigation, and the price of ATH is highly volatile and unpredictable, influenced by cryptocurrency market sentiment, macroeconomic conditions, and regulatory actions. ATH may also have limited liquidity, particularly for locked holdings, which could impair the company's ability to sell at favorable prices. Advances in AI model efficiency could reduce demand for GPU compute, adversely affecting the Aethir network and the value of its compute business. Geopolitical tensions and trade restrictions, especially between the United States and China, could disrupt GPU supply chains and limit the addressable market. The energy and environmental demands of data centers and GPU compute infrastructure may constrain market growth and result in increased regulatory costs or operational limitations. Demand for GPU compute is highly concentrated among a small number of large technology companies and governments, and any reduction in their expenditures could disproportionately affect the compute market.

Geographic, regulatory, and macro factors identified as constraints include the uncertain regulatory regime for digital assets in the U.S. and elsewhere. Regulatory changes could require the company to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns. The company is subject to a mandatory Nasdaq panel monitor for one year from December 1, 2025 ⁷³, and if it falls out of compliance with the Stockholders' Equity Requirement again within this period, it will not be permitted to provide a plan of compliance or be granted additional time to regain compliance ⁷⁴.

The company faces material risks including continued negative operating cash flows and significant capital needs, with future financing potentially being highly dilutive. Risks related to recent and future acquisitions include integration difficulties and failure to realize anticipated benefits. The success of the digital asset treasury strategy is uncertain due to the volatile and unpredictable changes in the price of ATH, the expected growth of the ATH ecosystem, and the availability of staking opportunities. The concentration of ATH holdings enhances these risks, as adverse developments specific to ATH, its protocol, or network could have a disproportionate impact on financial condition. ATH may have limited liquidity, impairing the ability to sell holdings at favorable prices, especially for locked ATH. The price of ATH is correlated with broader cryptocurrency market conditions and macroeconomic factors, amplifying exposure to market-wide risks. Disruption to the Aethir network or unanticipated difficulties could negatively impact ATH value. Legal, commercial, regulatory, and technical uncertainties surrounding ATH and other digital assets, including potential new laws or interpretations requiring registration as a money services business or money transmitter, could lead to increased compliance costs or operational shutdowns. Advances in AI model efficiency could reduce GPU compute demand, adversely affecting the Aethir network. Geopolitical tensions and trade restrictions, particularly between the United States and China, could disrupt GPU supply chains and limit the addressable market. The energy and environmental demands of data centers may constrain market growth and increase regulatory costs. Demand for GPU compute is highly concentrated among a few large technology companies and governments, making the company vulnerable to reductions in their expenditures. The ongoing process to sell the Legacy Business may not be completed on favorable terms or at all, potentially causing disruption, reducing its value, and exposing the company to liabilities or transition costs. The company's common stock could be delisted from the Nasdaq Capital Market if it fails to meet listing requirements, hindering liquidity and potentially lowering prices. Security breaches, data loss, and other disruptions to business or third-party service providers could compromise sensitive information, leading to liability and reputational damage. The company's ability to use net operating loss and tax credit carryforwards may be limited by Internal Revenue Code Sections 382 and 383, with a preliminary Section 382 base limitation of approximately $435,000 ⁷⁵ and an aggregate limitation of approximately $4,600,000 ⁷⁶ over the applicable five-year recognition period after consideration of deemed realized built-in gains.

Management's message to shareholders emphasizes a significant strategic pivot towards high-performance enterprise artificial intelligence infrastructure and a digital asset treasury strategy, with the Compute Services and Treasury Management segment now being the company's priority. The company is actively exploring strategic alternatives for its Legacy Business, including a potential sale, partnership, licensing arrangement, joint venture, or other transaction involving its biobank platform and related operations, reflecting a focus on maximizing value from non-core legacy assets. Management acknowledges the inherent volatility and unpredictability of the ATH market and the challenges in forecasting future operating results due to the strategic shift. The company has strengthened its liquidity position through recent capital raises, including approximately $343.5 million ⁷⁷ from PIPE transactions, and believes its current liquidity sources, including $10.8 million ⁷⁸ in cash and cash equivalents and $24.4 million ⁷⁹ in digital assets, are sufficient for at least the next twelve months. Key strategic priorities include continuing to acquire additional ATH in the open market, earning yield through staking and other activities, and leveraging its asset-light model to scale GPU compute capacity. Management also highlights the importance of maintaining relationships with hardware and infrastructure providers to mitigate supply chain risks.