Digi Power X Inc.

What they do

Through its U.S. operating subsidiaries, the company develops data centers and operates power facilities, including combined cycle and high-capacity substations, to serve industrial clients and energy markets. It also earns revenue from Bitcoin mining, selling mined Bitcoin through a third-party broker, and since 2026 has begun renting GPU bare-metal compute capacity. Its head office is in Miami, Florida, and it is incorporated in British Columbia, Canada.

Revenue drivers

• Colocation services and legacy mining — The largest piece of Q2 2026 revenue at approximately $3.6 million of the $6.6 million total, reflecting data center colocation and the legacy Bitcoin mining business.
• Energy sales — Generated approximately $1.9 million in Q2 2026, tied to the company's power facilities and substations.
• GPU rental / AI compute — First AI compute revenue of approximately $1.1 million in Q2 2026 from about five weeks of GPU bare-metal operations, following roughly $30 million invested in GPU infrastructure representing about 0.6 MW of deployed capacity.
• Contracted AI data center revenue — A 10-year AI data center agreement represents approximately $1.1 billion of contracted future revenue, with an option that could raise total potential contract value to approximately $2.5 billion.

Recent performance

For Q2 2026, revenue was approximately $6.6 million, down from $8.1 million in the prior-year quarter, split roughly $3.6 million colocation and legacy mining, $1.9 million energy sales, and $1.1 million GPU rental. The company reported a net loss of approximately $14.4 million for Q2 2026, while Adjusted EBITDA was positive at approximately $3.3 million versus approximately $0.1 million a year earlier. Full-year 2025 revenue was $34.2 million with a net loss of $28.4 million, versus 2024 revenue of $37.0 million and a net loss of $12.4 million. At June 30, 2026, total assets were $279.6 million, total liabilities $14.5 million, and shareholders' equity $265.0 million.

Strategy

Management describes Q2 2026 as an inflection point in the transformation into an AI infrastructure company, prioritizing execution on the Alabama Tier III AI data center. The company invested approximately $30 million in GPU infrastructure in the quarter and reports approximately $110 million of year-to-date capital investment and equipment deposits. It has engaged Goldman Sachs to syndicate debt financing for the Alabama data center and says it is in advanced discussions with lenders. Stated priorities are delivering Alabama on schedule, scaling the GPU compute platform, and developing power-secured sites for 2027 and beyond.

Risks

• Customer concentration — The company states it depends on significant customers for its data centers, and the approximately $1.1 billion contracted AI data center revenue rests on a single 10-year agreement.
• Diversification execution risk — The filing states the company's diversification into operating data centers may not prove successful, and the Tier III data center plan involves significant risks many of which are beyond its control.
• Bitcoin mining economics — The bitcoin block reward halves roughly every four years, reducing coins received per block, and mining revenue is tied to volatile Bitcoin prices and rising network difficulty.
• Mining pool and liquidity dependence — The company relies on a third-party mining pool operator whose insolvency or cessation of operations could have a material adverse effect, and the company may need to sell its cryptocurrency portfolio to pay expenses or raise financing on unfavorable terms.

Outlook

Management expects the Alabama Tier III AI data center Phase 1, representing 15 MW of IT load, to be delivered in December 2026, followed by Phase 2 of an additional 25 MW in March 2027, for up to 40 MW. The company reported cash and cash equivalents of approximately $150 million as of August 14, 2026, up from $142.4 million at June 30, 2026, with no debt, and is pursuing debt financing syndicated with Goldman Sachs. It cites growth in 2027 and beyond from GPU compute scaling and power-secured sites.