Descrypto Holdings Inc reported QQ1 2026 revenue of $2,982 and a gross profit of $2,982, implying a gross margin of 100% on the reported line item. However, the quarter featured a heavy fixed cost base, resulting in an operating loss of $1,046,997 and a net loss of $1,047,229. EBITDA was negative at $1,046,997 with a margin of approximately -351.1%. The quarter’s negative profitability is primarily driven by General and Administrative expenses totaling $1,049,979, which dwarfed the top-line revenue. On the cash flow side, operating cash flow was negative at $(730,988), while financing activities provided a substantial inflow of $5,809,985, yielding a net increase in cash of $1,808,489 and ending cash of $2,113,609. The company’s liquidity is therefore heavily dependent on external financing to sustain operations while it executes its stated strategy to identify and acquire blockchain technology companies and hold digital assets. Management commentary on near-term revenue traction remains sparse in the provided transcript, underscoring execution risk inherent in an early-stage, capital-intensive strategy.