Investing.com -- The $317 million in customer prepayments Axe Compute has received represents roughly 30% to 35% of the total cost of building out its $3 billion contract book, chief executive Christopher Miglino told Investing.com.

The figure is the first indication of the capital needed to deliver contracts that Axe Compute signed largely in July, with the company reporting $3.2 million of quarterly revenue and $21.9 million in cash at the end of June in its Q2 earnings release earlier this month.

Miglino explained that the company matches financing to contracted revenue rather than building speculatively.

"Every dollar of buildout sits behind a signed, multi-year commitment, and that contract quality unlocks the rest of the capital structure," he said. "Contracts first, capital against contracts, deployment against capital."

Miglino said in the company's Q2 earnings call that the remaining funding is expected to come through project financing raised against the contracted revenue streams, a structure he described as off balance sheet.

On the customers, none of whom have been named, Miglino noted that the company is not in a position to identify them and that discretion is part of why they selected Axe Compute.

He described them as creditworthy counterparties, including one carrying an A-plus rating from S&P, operating as leading innovators in their industries with requirements covering dedicated capacity, particular GPU architectures and defined geographies.

"Mission-critical workloads don't go to whoever's cheapest," he said. "They go to whoever can be trusted to deliver, and to keep delivering."

Miglino also disclosed that the agreements with Duos Technologies (NASDAQ: DUOT), announced as covering 55 megawatts, carry expansion rights to double capacity in the same buildings to 110 megawatts over the next year.

Individual large-scale clusters typically require 20 to 60 megawatts, he stated, indicating the Duos capacity covers only part of the signed book.

Furthermore, when focusing on the digital asset position that drove the company's $17.2 million second-quarter net loss, Miglino described the holdings as a compute reserve.

Axe Compute buys compute using Aethir tokens and sells that compute on, which he characterized as a non-dilutive way to generate cash and lift returns on the GPUs it rents to customers.

The first Build revenue is due to go live within the current quarter. Once the contracts signed this year are fully deployed, Miglino said, they represent an annualized run rate above $696 million, projected for the first quarter of 2027.

"The revenue is already signed," he declared. "The job is execution."