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BGDE, Big Digital Energy Inc.

Capital Markets & Asset Management capital-intensive UnprofitableDistress / turnaround

Big Digital Energy Inc. is a technology company focused on digital infrastructure platforms, headquartered in the United States.

Big Digital Energy Inc. designs, builds and operates next-generation digital infrastructure platforms for enterprise customers and for its own purposes.

Big Digital Energy Inc. provides services spanning artificial intelligence ("AI"), high-performance computing ("HPC"), digital assets including Bitcoin mining, and other intensive compute applications.

Latest annual: FY2025 10-K

BGDE · Big Digital Energy Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$40M

−32.9% YoY · 55% 5-yr CAGR

Vital signs · TTM

Cash & investments $16M

Cash burn · annual $25M

Runway 8 mo

Gross margin 37%

Next report By 11/13 · the 10-Q for the quarter ended late September · due within 45 days of period end · has filed ~45 days after · the wire records it on arrival

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Digital colocation revenue (66%), Energy management revenue (30%) and Digital assets mining revenue (5%).
Situation: Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has reached 90750% at its best but run negative through the cycle (median −53%) on a 39% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 24% of sales, a real and recurring claim on owners that the GAAP margin understates. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −39%, above 15% in 0 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Digital colocation revenue is 66% of revenue, with Energy management revenue the other meaningful line at 30%.

Revenue by product line, FY2025

Digital colocation revenue66%$26M
Energy management revenue30%$12M
Digital assets mining revenue5%$2M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

Most recent quarterly filing 10-Q filed Aug 14, 2026 Source at SEC EDGAR →

Revenue down 35.5% year over year

figures computed from the filing's XBRL

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
										Income statement
$6K	($4K)	$3K	$4M	$44M	$84M	$44M	$59M	$40M	$27M	RevenueRevenue
—	—	—	$1M	$34M	$37M	$15M	$20M	$17M	$10M	Gross profitGross prof.
—	—	—	29%	77%	43%	34%	34%	44%	37%	Gross marginGross mgn
n/m	n/m	n/m	56%	37%	31%	44%	31%	57%	90%	SG&A / revenueSG&A/rev
n/m	n/m	n/m	10%	—	—	—	—	—	2%	R&D / revenueR&D/rev
($1M)	($4M)	($3M)	($2M)	($43M)	($44M)	($60M)	($31M)	($19M)	($28M)	Operating incomeOp. inc.
n/m	n/m	n/m	−54.9%	−97.3%	−52.3%	−138.4%	−52.6%	−48.5%	−101.3%	Operating marginOp. mgn
($3M)	($3M)	($11M)	($5M)	($45M)	($54M)	($53M)	($45M)	($24M)	—	Pretax incomePretax
($3M)	($3M)	($3M)	($5M)	($45M)	($53M)	($60M)	($46M)	($24M)	($22M)	Net incomeNet inc.
										Cash flow & returns
($1M)	($2M)	($2M)	($185K)	$23M	$14M	($3M)	$4M	($7M)	($25M)	Operating cash flowOp. cash
—	—	—	$5M	$14M	$63M	$38M	$18M	$6M	$5M	Depreciation & amortizationD&A
$2M	($218K)	$568K	$9K	$31M	$806K	$9M	$18M	$2M	($15M)	Working capital & otherWC & other
$4K	$5K	—	$6M	$77M	$50M	$5M	$2M	$149K	$126K	CapexCapex
66.7%	−125.0%	—	123.8%	175.1%	59.2%	12.3%	3.3%	0.4%	0.5%	Capex / revenueCapex/rev
($1M)	($2M)	—	($6M)	$9M	($36M)	($8M)	$2M	($7M)	($25M)	Owner earningsOwner earn.
n/m	n/m	—	−128.0%	20.2%	−42.3%	−18.1%	2.7%	−17.7%	−90.9%	Owner earnings marginOE mgn
($1M)	($2M)	—	($6M)	($54M)	($36M)	($8M)	$2M	($7M)	($25M)	Free cash flowFCF
n/m	n/m	—	−128.0%	−122.8%	−42.3%	−18.1%	2.7%	−17.7%	−90.9%	Free cash flow marginFCF mgn
($4K)	$253K	—	($6M)	($128M)	($33M)	$11M	($1M)	($110K)	—	Investing cash flowInv. cash
$2M	$5M	($360K)	$6M	$110M	$14M	($5M)	($830K)	$14M	—	Financing cash flowFin. cash
$17K	$1K	—	$26K	($206K)	($223K)	($19K)	—	—	—	Exchange-rate effectFX
$187K	$3M	—	$534K	$4M	($5M)	$4M	$2M	$7M	—	Change in cashΔ cash
—	—	—	-30%	-31%	-33%	-75%	-76%	-45%	-43%	ROICROIC
—	-1547%	—	-67%	-39%	-68%	-207%	—	—	-178%	Return on equityROE
—	n/m	—	−67%	−39%	−68%	−207%	—	—	−178%	Retained to equityRetained/eq
										Balance sheet
$215K	$3M	$724K	$4M	$6M	$4M	$4M	$6M	$13M	$16M	Cash & investmentsCash+inv
$43K	$306K	$369K	$1M	—	$11M	$33M	$39M	$32M	$15M	Accounts payablePayables
$590K	$3M	$1M	$2M	$11M	$20M	$20M	$26M	$27M	$33M	Current assetsCur. assets
$4M	$3M	$641K	$2M	$20M	$36M	$53M	$62M	$59M	$46M	Current liabilitiesCur. liab.
0.2×	1.1×	1.8×	0.8×	0.6×	0.6×	0.4×	0.4×	0.5×	0.7×	Current ratioCurr. ratio
$5K	$8K	$7K	$7M	$77M	$91M	$58M	$28M	$23M	—	Net PP&ENet PP&E
$595K	$3M	$1M	$10M	$145M	$133M	$85M	$61M	$57M	$60M	Total assetsAssets
—	—	—	—	—	$28M	$39M	$42M	$50M	$55M	Total debtDebt
—	—	—	—	—	$24M	$34M	$36M	$37M	$39M	Net debt / (cash)Net debt
-67.3×	—	—	—	-26.0×	-7.3×	-19.8×	-10.1×	-5.7×	-7.5×	Interest coverageInt. cov.
—	$3M	—	$2M	$31M	$57M	$54M	$65M	$61M	—	Total liabilitiesTotal liab.
—	—	—	($27K)	($165K)	($906K)	$1M	—	—	—	Noncontrolling interestsNCI
($3M)	$212K	—	$8M	$115M	$77M	$29M	($3M)	($3M)	$12M	Shareholders’ equityEquity
316.7%	n/m	n/m	5.5%	51.3%	3.6%	24.9%	23.7%	22.6%	25.6%	Stock comp / revenueSBC/rev
										Per share
17.2M	28.2M	52.6M	35.5M	46.9M	63.5M	78.3M	4.5M	5.9M	5.2M	Shares out (diluted)Shares
$0.00	$-0.00	$0.00	$0.13	$0.93	$1.33	$0.56	$13.30	$6.76	$5.25	Revenue / shareRev/sh
$-0.17	$-0.12	$-0.07	$-0.14	$-0.96	$-0.83	$-0.77	$-10.35	$-4.02	$-4.24	EPS (diluted)EPS
$-0.08	$-0.08	—	$-0.16	$0.19	$-0.56	$-0.10	$0.36	$-1.20	$-4.77	Owner earnings / shareOE/sh
$-0.08	$-0.08	—	$-0.16	$-1.15	$-0.56	$-0.10	$0.36	$-1.20	$-4.77	Free cash flow / shareFCF/sh
$0.00	$0.00	—	$0.16	$1.64	$0.79	$0.07	$0.44	$0.03	$0.02	Cap. spending / shareCapex/sh
$-0.18	$0.01	—	$0.21	$2.45	$1.21	$0.37	$-0.73	$-0.53	$2.39	Book value / shareBVPS

The diluted share count moved ×1.64 into 2018 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.86 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1/1.48 into 2020 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1/17.57 into 2024 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Share counts before TTM are restated ×5 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+243.5%/yr	+122.0%/yr
Capital spending / share	+79.7%/yr	−30.4%/yr

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2021FY2024

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $24M loss into ($7M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($24M)	($46M)	($60M)	($53M)	($45M)
Depreciation & amortizationnon-cash charge added back	+$6M	+$18M	+$38M	+$63M	+$14M
Stock-based compensationreal costnon-cash, but a real cost	+$9M	+$14M	+$11M	+$3M	+$22M
Working capital & othertiming of cash in and out, other non-cash items	+$2M	+$18M	+$9M	+$806K	+$31M
Cash from operations	($7M)	$4M	($3M)	$14M	$23M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$149K	−$2M	−$5M	−$50M	−$14M
Owner earnings	($7M)	$2M	($8M)	($36M)	$9M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$63M
Free cash flow	($7M)	$2M	($8M)	($36M)	($54M)
Owner-earnings marginowner earnings ÷ revenue	-18%	3%	-18%	-42%	20%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $9M), owner earnings is nearer ($16M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -5.7×

Does not cover its interest

Operating income ($19M) ÷ interest expense $3M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $37M

Net debt against an operating loss

Cash $13M − debt $50M

What this means
Netting $13M of cash and short-term investments against $50M of debt leaves $37M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -39%

Below average through the cycle

6-yr median, range -76%–-30%; -45% latest = NOPAT ($15M) ÷ invested capital $34M

Industry peers: median -36%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran -45% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -18%

Consumes cash through the cycle

7-yr median margin, range -128%–55325%; latest ($7M) = operating cash ($7M) − maintenance capex $149K

Industry peers: median -36%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -18% of revenue this year, a -18% median across 7 years. Treating stock comp as the real expense it is (less $9M of SBC) leaves ($16M).
Are earnings backed by cash? ($7M)

Loss, and burning cash

Net income ($24M) · cash from operations ($7M)

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.03×

Harvesting

Capex $149K ÷ depreciation & amortization as filed $6M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $40M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.47×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $50M vs ($31M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (9-yr record) · 9 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record —

Uninterrupted dividends · no dividend line tagged in the data

What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-7.66/share (latest year $-4.18), the averaged base the calculator's gate runs on, and book value is $-0.55/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 9

What this means
Lost money in 9 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 4 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −13200% → −80% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −13200% early to −80% lately, median −55% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2019 · −105666.7% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$33M

Cash & short-term investments$16M
Other current assets$16M

Current liabilities$46M

Debt due within a year$30M
Accounts payable$15M
Other current liabilities$2M

Current ratio0.71×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.71×stricter: inventory excluded

Cash ratio0.35×strictest: cash alone against what's due

Working capital($14M)the cushion left after near-term bills

Debt due this year vs. cash$30M due · $16M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Jun 30, 2026 balance sheet

Cash runway0.7 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Revenue, latest quarter vs. a year ago−35.5%the freshest read on whether the business is still growing

Current ratio, recent quarters0.4× → 0.7×

Deeper floors

Tangible book value$12Mequity stripped of goodwill & intangibles

Net current asset value($15M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$58M$2M of it operating leases

From the company's latest filing.

How the cash was used, 2017–2025

Over the record, the business generated $28M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$140M · 507%

Source of funding−$112M
Reinvestment and shareholder returns ran $112M beyond the operating cash the business generated, so the gap was financed off the balance sheet.
Net change in share count−69.7%
The diluted count fell from 17M to 5M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2022	$2.0M	$991k	($36M)
2023	$11.6M	$20.5M	($8M)
2023	$5.6M	$2.0M	($8M)
2024	$20.3M	$2.6M	$2M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$9M
The slice of the business handed to employees in shares in fiscal 2025, 22.6% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Capital Markets & Asset Management

The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
BGINBgin Blockchain Limited	$67M	60%2y	27.0%	-211%2y	-69%
GPGIGPGI Inc.	$60M	53%	30.4%	136%2y	27%
GREELVulcan Infrastructure and Power Inc.	$59M	—	-16.2%	-193%	—
ARBKArgo Blockchain plc	$47M	—	-35.8%	-36%	-144%
BGDEBig Digital Energy Inc.	$40M	39%	-52.6%	-39%	-18%
MATHMetalpha Technology Holding Limited	$37M	35%3y	8.5%	-19%	-4%
SBETSharplink Inc.	$28M	31%	-179.6%	-308%	-171%
JFU9F Inc.	$20M	76%3y	-31.6%	-5%	32%
Group median	—	46%	-23.9%	-37%	-18%

The price

What a price has to assume.

What the price implies

reverse-DCF

Big Digital Energy Inc. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0%

Revenue, delivered38%/yr’20→’25

Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−91%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh BGDE against another business →

The owners of BGDE: the meeting and the votes →

Cite: Owner Scorecard, "Big Digital Energy Inc. (BGDE), the owner's record," https://ownerscorecard.com/c/BGDE, data as of 2026-08-17.

Manual order: ← BGC its page in the Manual BGS →

Industry order: ← BGC the Capital Markets & Asset Management chapter BGIN →