Z Squared Inc. Reports 81% Revenue Increase Amid Strategic Shift to Digital Asset Mining

Z Squared Inc., formerly known as Coeptis Therapeutics Holdings, Inc., reported its financial results for the three months ended March 31, 2026, revealing a significant increase in revenue compared to the same period in the previous year. The company generated $113,771 in sales, a 81% increase from $62,874 in the first quarter of 2025. The gross profit for the quarter was $68,615, up from $17,718 in the prior year. However, the company continued to experience substantial losses, reporting a net loss of $4,020,896, compared to a net loss of $3,420,941 in the same quarter of 2025.

Operating expenses decreased slightly to $3,983,259 from $4,074,702 year-over-year, primarily due to a reduction in professional services expenses. However, this was offset by increases in general and administrative expenses and stock-based compensation, which rose to $1,416,178 from $597,731 in the previous year. The company’s interest expense also saw a significant decline, dropping to $5,257 from $71,491, reflecting the satisfaction of certain notes payable.

Z Squared has undergone significant strategic changes, including a merger with Z Squared, Inc. on April 24, 2026, which resulted in a shift in its business focus from biopharmaceuticals to digital asset mining. The merger was accompanied by a spin-out of the company’s biopharmaceutical operations, which were distributed to shareholders. Following the merger, Z Squared's primary business now involves cryptocurrency mining operations, including the mining of Dogecoin and Litecoin, with facilities located in North Carolina, South Carolina, and Iowa. The company is also exploring expansion into power generation, data center development, and high-performance compute hosting.

As of March 31, 2026, Z Squared had cash reserves of $5,211,188, a decrease from $5,674,302 at the end of 2025. The company utilized $1,758,887 in cash for operating activities during the quarter but generated $591,519 from investing activities and $704,254 from financing activities. Despite these cash inflows, the company reported an accumulated deficit of $113,870,346, raising concerns about its ability to continue as a going concern. Management indicated that future operations would require additional capital to sustain business activities and achieve profitability.

Looking ahead, Z Squared's management expressed optimism about its new business model and the potential for growth in the digital asset mining sector. However, they acknowledged the challenges associated with entering new markets and the need for substantial capital investment. The company is also pursuing a strategic acquisition of Skycore Digital LLC, which could further enhance its digital infrastructure capabilities. The successful execution of these plans will be critical for Z Squared as it navigates its transition and seeks to establish a sustainable and profitable business model.