This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated May 30, 2025 to its short form base shelf prospectus dated May 15, 2025. MIAMI, June 02, 2025 (GLOBE NEWSWIRE) -- Digi Power X Inc. (“Digi Power X” or the “Company”) (Nasdaq: DGXX / TSXV: DGX), an innovative energy infrastructure company that develops cutting-edge data centers, is pleased to provide unaudited comparative Bitcoin (“BTC”) production results for the month ended May 31, 2025, ...

Core Viewpoint - Digi Power X Inc. has announced an at-the-market sales agreement to raise up to US$100 million through the issuance of subordinate voting shares, aimed at supporting its strategic initiatives and operations [2][3][4]. Group 1: At-the-Market Offering - The ATM Agreement allows Digi Power X to issue subordinate voting shares with an aggregate offering price of up to US$100 million [3]. - A cash commission of up to 3.0% will be paid to the Agent for the services related to the ATM Equity Program [3]. - The proceeds from the ATM Equity Program will primarily be used for general corporate purposes, including funding ongoing operations, completing data center construction, repaying debt, and potential acquisitions [3][4]. Group 2: Company Position and Strategy - The CEO of Digi Power X stated that the company is in a strong position, being debt-free with solid cash reserves, and is focused on scaling its AI-ready Modular Solution platform [4]. - The company has not yet distributed any subordinate voting shares under the ATM Agreement [4]. Group 3: Regulatory and Compliance Information - The offer and sale of shares will be conducted under a prospectus supplement dated May 30, 2025, and a base shelf prospectus dated May 15, 2025, which have been filed with regulatory authorities [6]. - The ATM Equity Program will not involve sales on the TSX Venture Exchange or any other Canadian trading market [5].

Core Viewpoint - Digi Power X Inc. has announced a collaboration with Super Micro Computer, Inc. to deploy customized GPU rack solutions at its new data center in Alabama, marking a significant step in expanding its AI and high-performance computing infrastructure [1][2]. Group 1: Collaboration Details - The collaboration will initiate with an initial deployment aimed at operational readiness within 120 days, with full test operations expected in Q4 2025 [2]. - The project is set to lay the groundwork for broader expansion at the Alabama site, with plans to scale up to 22 megawatts (MW) in 2026 and 55 MW by 2027 [2]. Group 2: Company Overview - Digi Power X is described as a vertically integrated power infrastructure company focused on developing advanced data centers for high-performance computing [1]. - The company aims to drive the expansion of sustainable energy assets through its innovative energy infrastructure [3].

Core Insights - Digi Power X Inc. reported a strong financial performance for Q1 2025, with quarterly revenue of $9.3 million, a 65% increase compared to Q4 2024, and positive EBITDA of $0.5 million, indicating a return to operational profitability [3][8]. Financial Performance - Revenue for Q1 2025 reached $9.3 million, up 65% from $5.6 million in Q4 2024 [8]. - The colocation vertical grew by 256% to $5.1 million, compared to $1.4 million in Q4 2024 [8]. - The sale of energy increased by 155% to $3.4 million, up from $1.3 million in Q4 2024 [8]. - Net loss narrowed to $1.7 million, a 63% improvement from a loss of $4.6 million in Q4 2024 [8]. - Digital assets increased by 51% year-over-year to $4.4 million [8]. - Capital expenditures and energy deposits for Q1 2025 totaled $3.8 million, focused on Tier 3 data center development [8]. Strategic Development - The company owns 100% of its operational sites, providing long-term control over core assets [3]. - Digi Power X is developing a bespoke vertical Tier 3 AI data center solution, designed for next-generation NVIDIA workloads [3][4]. - The infrastructure development is in collaboration with a leader in AI data center logistics, focusing on advanced GPU architecture and energy efficiency [4]. - US Data Centers Inc., a subsidiary, is dedicated to developing the AI modular data center platform for rapid deployment across North America [5]. Market Outlook - The total value of coins mined and energy sales at the company's facilities was approximately $12.1 million in Q1 2025 [6]. - The company anticipates continued revenue growth in 2025, driven by rising demand for AI compute infrastructure and disciplined capital deployment [6]. - Digi Power X is pivoting towards Tier 3 AI data centers, which is expected to enhance shareholder value through 2025 and into 2026 [6].

Core Insights - Digi Power X Inc. is focused on developing advanced data centers for high-performance computing and aims to expand its power capacity from approximately 100MW to 200MW and beyond through existing assets and strategic acquisitions [3][4]. Monthly Production Highlights - The company reported gross energy and power revenue of approximately $0.7 million for April 2025 [6]. - Miners at the company's facilities produced around 30 BTC in April, valued at approximately $2.8 million based on a BTC price of $94,000 [6]. Operations Update - Digi Power X operates with about 100MW of available power across three sites and is actively working on expanding its capacity [3]. - The company has invested approximately $1.9 million year-to-date in capital expenditures and mining infrastructure support equipment, emphasizing a commitment to long-term growth while maintaining a disciplined capital allocation strategy [6]. Tier III HPC Data Center Update - The company is developing Tier 3 data center assets and investing in high-density compute infrastructure, with a focus on AI and HPC solutions through its subsidiary, US Data Centers, Inc. [4][5]. - The first major initiative involves transforming the existing site in Columbiana, Alabama, into a state-of-the-art Tier 3 data center to support next-generation AI and HPC workloads [5]. Financial Position - As of April 30, 2025, the company held cash, Bitcoin, and cash deposits totaling approximately $10.2 million, a slight decrease from $10.3 million on March 31, 2025 [6]. - The company maintains a clean balance sheet with zero long-term debt, which supports its capital flexibility and commitment to self-funding [6].

Core Viewpoint - Digi Power X Inc. reported significant revenue growth and maintained a strong balance sheet while remaining long-term debt free, positioning itself well for future quarters [1][2]. Financial Performance - The total aggregate revenue for Q1 2025 was approximately $12.1 million, representing a 115% increase from Q4 2024 revenue of $5.63 million [6]. - Revenue from digital currency mining was approximately $9.1 million, up 78% from $5.1 million in Q4 2024 [6]. - Revenue from energy sales reached approximately $3.0 million, a substantial increase of 436% from $0.56 million in Q4 2024 [6]. - The revenue split for the quarter was approximately 75% from mining and 25% from energy sales, indicating a commitment to diversifying revenue streams [6]. Operations Update - The company operates with approximately 100MW of available power and plans to expand to 200MW and beyond through existing assets and strategic acquisitions [4]. - Digi Power X continues to operate with zero long-term debt, enhancing its capital flexibility and commitment to self-funding [6]. Strategic Initiatives - The formation of US Data Centers, a wholly-owned subsidiary, aims to develop high-performance computing and AI-focused data centers [5][7]. - The first major initiative involves transforming the existing site in Columbiana, Alabama into a state-of-the-art Tier 3 data center to support next-generation AI and HPC workloads, with implementation planned for Q2 2025 [7].

Bitcoin Halving and Mining Rewards - The Bitcoin daily reward halved from 6.25 Bitcoin per block to 3.125 Bitcoin per block in April 2024, reducing the Corporation's potential daily earnings from approximately 900 Bitcoin to 450 Bitcoin[43]. - The next Bitcoin halving is expected in March 2028, which will further decrease the block reward to 1.5625 Bitcoin per block, potentially impacting profitability[43]. Growth Strategy and Market Diversification - The Corporation's growth strategy includes diversifying revenue sources into new markets, particularly focusing on operating data centers to support sustainable energy assets[35]. - The Corporation's plan to diversify into HPC and AI-driven processes may not be profitable and is contingent on market demand and infrastructure needs[36][38]. - The Corporation's ability to accurately predict facility requirements is crucial; overestimating could lead to reduced operating margins, while underestimating could limit growth opportunities[39]. Operational Risks and Challenges - The Corporation's profitability is highly dependent on the hashrate of its miners and the network, with increased mining difficulty potentially reducing competitiveness[45]. - The Corporation relies on a single mining pool operator, Foundry Pool, which poses risks if the operator modifies service agreements or ceases operations[49][50]. - Significant customers for the Corporation's data centers may face liquidity issues, impacting their ability to make timely payments and potentially leading to defaults[40]. - The Corporation may face heightened risks if it ceases participation in a mining pool and conducts independent mining, potentially disrupting its revenue stream[51]. - Transitioning to proof of stake validation could make the Corporation less competitive, adversely affecting its business and share value[52]. - The Corporation currently lacks binding commitments for additional financing, which may be necessary for acquiring more mining rigs and continuing operations[53]. - Failure to obtain required financing could lead to reduced operations or delays in business objectives, including equipment acquisition and strategic expansions[54]. - The Corporation may need to sell part of its cryptocurrency portfolio to cover expenses, potentially impacting profitability if sales occur at low prices[55]. - Competition from other cryptocurrency companies with greater resources may hinder the Corporation's ability to maintain profitability and operational continuity[56]. - Regulatory changes could significantly impact the Corporation's operations and the legality of cryptocurrency mining, affecting its business model[57]. - The U.S. political and economic environment may create uncertainty that adversely affects the Corporation's financial performance and operational strategy[59]. - The Corporation's mining operations could be negatively impacted by increased government influence over the Bitcoin network, affecting mining difficulty and profitability[60]. - The Corporation's reliance on electricity at commercially feasible rates poses risks, as shortages or price increases could render operations unprofitable[74]. - The Corporation's cryptocurrency inventory is at risk due to potential cybersecurity threats and hacks, which could lead to unauthorized access and loss of assets[78]. - Loss or theft of private keys required to access digital wallets may result in irreversible losses of cryptocurrencies, adversely affecting the Corporation's investments[81]. - The Corporation has identified material weaknesses in internal control over financial reporting, which could lead to misstatements in financial results and adversely affect investor confidence[95]. - The Corporation's operations may be negatively impacted by competition from other cryptocurrency investment methods, potentially limiting the market for its shares[85]. - The Corporation's ability to attract and retain key personnel is critical for its growth, and failure to do so could erode its competitive position[102]. Financial Performance and Revenue - For the year ended December 31, 2024, the Corporation reported a net loss from continuing operations of approximately $6.8 million[111]. - The Corporation generated revenues from cryptocurrency mining operations of $10,318,500 in 2024, down from $18,128,241 in 2023 and $24,190,060 in 2022, reflecting a significant decline in mining revenue due to diversification into colocation and electricity sales[168]. - The Corporation mined 188 Bitcoins in 2024 at an average price of $65,963, compared to 640 Bitcoins at an average price of $28,861 in 2023, indicating a 129% increase in Bitcoin price year-over-year[169]. - Total cost of digital currency mining in 2024 was $7,192,288, down from $15,285,347 in 2023, demonstrating a reduction in operational costs[170]. - Revenue from colocation service agreements increased to $15,790,179 in 2024, up from $1,675,269 in 2023, highlighting a successful shift in revenue strategy[170]. - Total revenue for the year ended December 31, 2024, was $37,002,263, a 41.6% increase from $26,112,908 in 2023[199]. - The Corporation's net loss for the year ended December 31, 2024, was $(6,797,718), an improvement from a net loss of $(21,885,410) in 2023[199]. - The Corporation's total assets decreased to $34,318,088 as of December 31, 2024, down from $42,147,347 in 2023[200]. Environmental and Regulatory Considerations - The Corporation aims to achieve 100% carbon neutrality by 2026 and is on track to use 100% renewable energy by 2030[149]. - The Corporation's community solar project in North Tonawanda, NY, will produce approximately 9,500,000 kWh of clean electricity annually, enough to power over 1,000 homes[163]. - Increased scrutiny regarding the Corporation's ESG practices may result in additional costs and operational risks[90]. - The Corporation's operations could be adversely affected by environmental liabilities and hazards, leading to fines and penalties[93]. - The U.S. Treasury Department proposed a 30% excise tax on mining operations, which could significantly impact the Corporation's profitability if enacted[155]. Strategic Partnerships and Investments - A strategic MOU was formalized with NANO Nuclear Energy to integrate advanced nuclear technologies at the 60 MW New York power facility, promoting zero-emission energy solutions[127]. - The Corporation entered into subscription agreements for gross proceeds of up to US$4 million in a private placement, consisting of 3,636,363 units at a purchase price of US$1.10 per unit, representing a 9% premium to the recent closing price[125]. - A private placement closed on February 7, 2025, for gross proceeds of $6,609,500, consisting of 2,503,601 SV Shares and warrants exercisable for up to 1,251,805 SV Shares at a combined price of $2.64 per SV Share[128]. Operational Capacity and Infrastructure - The Corporation's mining operations included approximately 13,000 active miners under self-mining agreements and 9,100 under colocation agreements for the year ended December 31, 2024[138]. - The Corporation's power plant in North Tonawanda has a capacity of 60 MW and an operating hashrate of 1.2 EH, while its facilities in Buffalo and Alabama have capacities of 18.7 MW and 22 MW, respectively, each with an operating hashrate of 500 PH[136]. - The acquisition of the 60 MW power plant increased the Corporation's consolidated operating capacity to approximately 90 MW, equating to about 2 EH/s of computing power[180]. - The Corporation plans to transform its facility in Columbiana, Alabama into a Tier 3 data center with a total planned capacity of 55 MW, focusing on HPC and AI workloads[187]. - The Corporation's digital custody account with Gemini holds 100% of its cryptocurrency assets, with $100 million in insurance coverage for digital assets[192]. Financial Management and Reporting - The Corporation is subject to significant legal, accounting, and financial costs as a publicly traded company, which may reduce resources available for cryptocurrency mining operations[106]. - The Corporation may face increased costs and challenges in maintaining compliance with U.S. federal securities laws if it loses its foreign private issuer status[110]. - The Corporation's tax filings are subject to audit, and evolving regulations in the cryptocurrency industry may lead to increased tax liabilities[113]. - The Corporation's management may be diverted from other business concerns due to the need to meet reporting requirements, potentially harming operations[107]. - The Corporation's limited operating history presents risks such as under-capitalization and cash shortages, affecting the likelihood of achieving consistent profitability[111]. - The Corporation does not currently engage in foreign currency hedging, exposing it to risks from currency fluctuations[116]. - The Corporation's market price for SV Shares may be volatile, influenced by external factors such as government regulation and market sentiment[105]. Cost Management and Financial Performance - General and administrative expenses significantly decreased to $476,891 in 2024 from $7,653,629 in 2023, indicating improved cost management[210]. - Cash used by operating activities increased to $17,532,344 in 2024 from $13,572,958 in 2023, primarily due to higher depreciation and amortization expenses[227]. - Cash provided in investing activities rose to $14,716,849 in 2024 from $12,007,498 in 2023, reflecting ongoing investments in equipment and digital currencies[229].

Core Insights - Digi Power X Inc. reported a record-setting year in 2024, with a 42% increase in revenue to $37.0 million, driven by growth in colocation services and diversification beyond digital currency mining [2][5] - The company achieved a significant turnaround in EBITDA, improving from a loss of $6.9 million in 2023 to a gain of $8.8 million in 2024, marking a 228% improvement [2][5] - Digi Power X is expanding its operations by forming a subsidiary focused on AI-ready Tier 3 data centers, aiming to enhance its position in the advanced computing market [2][10] Financial Performance - Revenue from digital currency mining decreased to $10.3 million in 2024 from $18.1 million in 2023 [4] - Revenue from colocation services surged by 829% to $15.8 million, compared to $1.7 million in the previous year [4][5] - The sale of energy revenue increased by 41% to $4.6 million, up from $3.3 million in 2023 [4][5] - The company reported a gross loss of $11.3 million for 2024, compared to a loss of $9.7 million in 2023 [4] - Net loss for the year was $6.8 million, an improvement from a loss of $21.9 million in 2023 [6] Operational Highlights - Digi Power X eliminated all long-term debt, including secured loan facilities and mortgage payables [5][9] - The company integrated 11,000 S21 miners into its facilities, translating to approximately 44 MW of hosting capacity [9] - Digi Power X became the anchor subscriber to a 5 MW community solar project, which will generate enough clean electricity to power over 2,500 homes annually [9] - Approximately 72% of the company's 2024 revenues were derived from services outside of digital currency mining, compared to 31% in 2023 [9] Future Outlook - The company anticipates continued revenue growth in 2025, assuming stable or rising Bitcoin prices [8] - Digi Power X's strategic pivot towards Tier 3 AI data centers is expected to generate significant shareholder value through 2025 and into 2026 [10]

Company Overview - Digi Power X Inc. is an innovative energy infrastructure company focused on developing cutting-edge data centers to support the expansion of sustainable energy assets [2] Financial Results Announcement - The company plans to announce its financial results for the fourth quarter and the year ended December 31, 2024, after markets close on March 31, 2025 [1] Operational Update - Along with the financial results, the company will provide an update on its operations at the same time [1]

Core Points - Digi Power X Inc. is changing its stock ticker symbol on the Nasdaq from "DGHI" to "DGXX" effective March 18, 2025, to enhance brand alignment [1][2] - The company's subordinate voting shares will continue to trade under the symbol "DGX" on the TSX Venture Exchange [2] Company Overview - Digi Power X is an innovative energy infrastructure company focused on developing advanced data centers to promote the growth of sustainable energy assets [4]