Prairie Operating Co. Reports Decreased Net Losses in Q1 2023 and Boosts Liquidity with Preferred Stock Issuance

Prairie Operating Co. (ticker: CRKR), a company involved in cryptocurrency mining, has reported encouraging financial results for the first quarter of 2023, with decreased net losses and increased liquidity. In its unaudited interim condensed consolidated financial statements, CRKR revealed net losses from continuing operations of $971,366 for Q1 2023, compared to $3,095,699 for the same period in 2022.

Improved Financial Position Through Merger and Stock Issuance

CRKR’s financial position significantly improved following its merger and related transactions on May 3, 2023, during which the company raised $17.3 million through the issuance of preferred stock. A majority of these proceeds remain within CRKR post-merger, providing additional liquidity for business operations. As of March 31, 2023, the company held cash and cash equivalents of $27,020 and reported a working capital deficit of approximately $14 million, alongside an accumulated deficit of approximately $62 million.

Based on management’s assessment of various factors, including CRKR’s current cash position and its ability to manage spending, the company is expected to have sufficient liquidity for its operations for at least the next 12 months. The financial statements were prepared on a going concern basis, meaning that they assumed CRKR will continue as a going concern without considering any potential future effects on the recoverability and classification of assets or liabilities.

Cryptocurrency Mining Operations Drive Revenue

Dominating CRKR’s revenue stream is its cryptocurrency mining operations. The company contracts with mining pool operators to provide computing power for mining pool participants, which in turn earns the company a fractional share of the fixed cryptocurrency awards received by the pool operator for successful block addition to the blockchain. CRKR recognizes revenue from its cryptocurrency mining activities when it receives a confirmed share of an award, measuring the noncash consideration at fair value on the date of receipt.

Potential Changes in Accounting Policies

However, CRKR’s current accounting policies for cryptocurrencies may be subject to change due to a lack of definitive GAAP guidance or an alternative accounting framework for the accounting of cryptocurrency revenues or holdings. If the Financial Accounting Standards Board (FASB) enacts authoritative guidance, CRKR may be required to modify its policies, which could impact the company’s financial position and results from operations.


In summary, Prairie Operating Co. has demonstrated improved financial performance for the first quarter of 2023, exhibiting a significant reduction in net losses and increased liquidity resulting from its recent merger and preferred stock issuance. With management’s confidence in CRKR’s ability to maintain adequate liquidity for the next 12 months, the company appears to be in a healthy position for continued operation and potential growth in the burgeoning cryptocurrency mining industry.

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