Core Viewpoint - 2025 was a transformational year for Digi Power X as the company shifted from a digital asset mining focus to a power-backed AI infrastructure and Tier-3 data-center platform to meet the growing global demand for AI compute while still maintaining its digital asset mining operations [2] Strategic Transformation - Digi Power X executed a strategic pivot towards AI-ready, modular data-center infrastructure through its subsidiary, US Data Centers Inc., emphasizing the importance of secured power, scalable infrastructure, and flexible compute platforms for long-term value creation in the AI economy [3] ARMS 200 Deployment - The company completed the design and build-out of its flagship modular Tier-3 AI data-center pod, ARMS 200, which is expected to begin deployment in Q1 2026 at its Alabama facility, marking a transition to revenue-generating infrastructure [5] Power Portfolio & Infrastructure - Digi Power X expanded its power footprint significantly in 2025, securing 70 MW in Upstate New York, 123 MW in North Tonawanda, and 18.7 MW in Buffalo, with plans for 200 MW available for future development targeted for 2028-2029 [6][7][8] AI Compute and Customer Pipeline - The company advanced its AI compute roadmap and continued development of its GPU-as-a-Service platform, NeoCloudz™, while engaging in advanced negotiations with customers for 2026 to support contracted utilization as ARMS 200 and future deployments come online [9][12] Strengthened Leadership - Digi Power X strengthened its executive team by appointing Jagan Jeyapaul as Chief Technology Officer, who brings extensive experience in enterprise infrastructure and will lead the company's technology initiatives [10] Financial Strength - The company expects to end 2025 with a strong balance sheet, including cash and liquidity exceeding $100 million, no long-term debt, and year-to-date capital expenditures of approximately $13.5 million focused on infrastructure and AI readiness [13]

Core Insights - Digi Power X Inc. is advancing its AI infrastructure roadmap, focusing on the deployment of its ARMS 200 Tier III modular data center platform and launching its GPU-as-a-Service platform NeoCloudz in Q1 2026 [2][3][11] Deployment and Infrastructure - The deployment of the ARMS 200 platform will commence in Q1 2026 across U.S. Tier III facilities, marking a shift from cryptocurrency mining to AI-optimized infrastructure [3] - The first NVIDIA B200 GPU cluster has been completed at the Alabama campus, optimized for high-density integration, liquid cooling, low-latency networking, and multi-megawatt scalability [7][8] Patent and Collaboration - The company has filed a patent application for the ARMS 200 platform with the USPTO, covering key components of the architecture [4] - Digi Power X is collaborating with Supermicro to integrate the ARMS 200 modular cluster line, enabling global distribution through Supermicro's enterprise channel [5][6] AI Transition and Capacity - The company is converting its existing power capacity into Tier III AI infrastructure, targeting 195 MW operational by 2027, including 140 MW of critical Tier III AI capacity [12] - A phased deployment plan is in place for 2026, with specific targets for each quarter [16] Financial Position - As of November 30, 2025, the company reported total liquidity of approximately $97 million, up from $85 million on October 31, 2025, positioning it to accelerate its AI infrastructure development [14][16] - The company holds approximately 123 BTC and 1,000 ETH, with a fair market value of around $3 million for ETH, and has generated significant revenue from its mining activities [20] Market Strategy - The company is utilizing its at-the-market equity offering to raise capital for its AI infrastructure strategy, enhancing its ability to scale operations and pursue growth initiatives [17]

Financial Data and Key Metrics Changes - Working capital increased from $500,000 in Q3 2024 to $15 million in Q3 2025 [4] - Net income turned positive at $300,000 compared to a loss of $6.4 million in the previous year [4] - EBITDA was positive at $1.9 million, with adjusted EBITDA at $0.8 million [4] - Digital assets, specifically Bitcoin holdings, rose by 143% to 97 Bitcoin, while total digital currency value increased by 213% year over year to $15.4 million [4] Business Line Data and Key Metrics Changes - Energy revenue grew by 112% year over year to $8.7 million [5] - Cost of revenue and depreciation decreased by $9.3 million year to date [5] Market Data and Key Metrics Changes - The company has over $90 million in cash, Bitcoin, Ethereum, and equivalents, representing the strongest liquidity in its history [5] - Current power availability includes 55 megawatts in Alabama and 141.7 megawatts in upstate New York, totaling close to 200 megawatts for 2026 [6] Company Strategy and Development Direction - The company is transitioning into AI infrastructure, with plans for a scalable high-density AI compute ecosystem [6][7] - The ARMS 200 Tier 3 AI pod assembly began in Q4 2025, with deployment across all Tier 3 sites starting in January 2026 [5] - The NeoCloud Z GPU-as-a-Service platform is set to launch in January 2026, targeting smaller AI developers and research institutions [17] Management's Comments on Operating Environment and Future Outlook - The management expects AI revenues to reach approximately $65 million in 2026, driven by colocation and GPU-as-a-Service offerings [8][9] - The company anticipates energy sales to contribute significantly to revenues, with $8.9 million year to date from energy sales [9] - Management emphasized the transformational nature of 2026 for the company, with a focus on developing AI infrastructure [14] Other Important Information - The company has no long-term debt and is completely debt-free, with the lowest payables recorded [10] - The ARMS platform is designed for rapid deployment and customization, allowing for faster scaling compared to traditional hyperscale solutions [12][14] Q&A Session Summary Question: What are your expectations in AI revenues in 2026 and 2027? - The company estimates roughly $50 million in revenues from colocation and an additional $15 million from GPU-as-a-Service, totaling about $65 million in AI revenues for 2026 [8][9] Question: What are the current debts? - The company confirmed it holds no long-term debts and has no obligations that could negatively impact its financial position [10] Question: How is your current cash holding? - The company holds over $90 million, primarily in cash, with some holdings in Bitcoin and Ethereum, which supports its modular system development [11] Question: Can you please describe the ARMS AI-ready modular solution platform? - The ARMS platform is a proprietary modular system developed for rapid deployment, designed for various chip types, primarily NVIDIA [12][14] Question: Can you please go into some detail on your relationship with Supermicro Computers Inc.? - The company has developed a strong partnership with Supermicro for optimized service racks and software integration, enhancing operational efficiency [15][16] Question: Can you please describe the retail compute platform NeoCloud, who the potential customers or end users will be? - NeoCloud is aimed at smaller AI developers and research institutions, expected to contribute 20%-25% of total revenue, with a focus on high-margin GPU-as-a-Service offerings [17][18]

Financial Data and Key Metrics Changes - Working capital increased from $500,000 in Q3 2024 to $15 million in Q3 2025 [4] - Net income improved to +$300,000 compared to a loss of $6.4 million in the previous year [4] - EBITDA was positive at $1.9 million, with adjusted EBITDA at $0.8 million [4] - Total digital currency value rose by 213% year-over-year to $15.4 million, with Bitcoin holdings increasing by 143% to 97 Bitcoin [4] Business Line Data and Key Metrics Changes - Energy revenue grew by 112% year-over-year to $8.7 million [5] - Cost of revenue and depreciation decreased by $9.3 million year-to-date [5] - The first ARMS 200 tier 3 AI pod assembly is set to begin in Q4 2025, with online activation expected in Q1 2026 [4][5] Market Data and Key Metrics Changes - Current power availability includes 55 MW in Alabama and 141.7 MW in Upstate New York, totaling close to 200 MW for 2026 [6] - An additional 200 MW is anticipated in North Carolina by 2028 [6] Company Strategy and Development Direction - The company is transitioning into AI infrastructure, with a focus on building a scalable high-density AI compute ecosystem [6][7] - The NeoCloud Z platform, a GPU-as-a-Service offering, is set to launch in January 2026 [5][18] - The company aims to deploy 55 MW of AI infrastructure by Q4 2026, with a phased approach to deployment [6] Management's Comments on Operating Environment and Future Outlook - Management expects AI revenues to reach approximately $65 million in 2026, driven by colocation and GPU-as-a-Service offerings [8][9] - The company is currently debt-free and holds over $90 million in cash and equivalents, providing strong liquidity for future developments [10][11] Other Important Information - The ARMS platform is designed for rapid deployment and customization, allowing for faster scaling compared to traditional hyperscale solutions [12][14] - The partnership with Supermicro is crucial for the integration of optimized service racks and software, enhancing operational efficiency [15][16] Q&A Session Summary Question: What are your expectations in AI revenues in 2026 and 2027? - Management estimates about $50 million in revenues from colocation and an additional $15 million from GPU-as-a-Service, totaling approximately $65 million in AI revenues for 2026 [8][9] Question: What are the current debts? - The company confirmed it has no long-term debts and is completely debt-free [10] Question: How is your current cash holding? - The company holds over $90 million, primarily in cash, with some holdings in Bitcoin and Ethereum [11] Question: Can you please describe the ARMS AI-ready modular solution platform? - The ARMS platform is a proprietary modular system developed for rapid deployment, capable of supporting various chip types, primarily NVIDIA [12][13] Question: Can you please go into some detail on your relationship with Supermicro Computers Inc.? - The partnership with Supermicro focuses on integrating optimized service racks and software, which is essential for the company's modular systems [15][16] Question: Can you please describe the retail compute platform NeoCloud, who the potential customers or end users will be? - NeoCloud is aimed at smaller AI developers and research institutions, providing GPU-as-a-Service and expected to contribute 20%-25% of total revenue [17][18]

Financial Data and Key Metrics Changes - Working capital increased from $500,000 in Q3 2024 to $15 million in Q3 2025 [4] - Net income turned positive at $300,000 compared to a loss of $6.4 million in the previous year [4] - EBITDA was positive at $1.9 million, with adjusted EBITDA at $0.8 million [4] - Digital assets, specifically Bitcoin holdings, rose by 143% to 97 Bitcoin, while total digital currency value increased by 213% year over year to $15.4 million [4] Business Line Data and Key Metrics Changes - Energy revenue grew by 112% year over year to $8.7 million [5] - Cost of revenue and depreciation decreased by $9.3 million year to date [5] Market Data and Key Metrics Changes - The company has over $90 million in cash, Bitcoin, Ethereum, and equivalents, representing the strongest liquidity in its history [5] - Current power availability includes 55 megawatts in Alabama and 141.7 megawatts in upstate New York, totaling close to 200 megawatts for 2026 [6] Company Strategy and Development Direction - The company is transitioning into AI infrastructure, with plans for a scalable high-density AI compute ecosystem [6] - The ARMS 200 Tier 3 AI pod assembly began in Q4 2025, with deployment across all Tier 3 sites starting in January 2026 [5] - The NeoCloud Z GPU-as-a-Service platform is set to launch in January 2026, targeting smaller AI developers and research institutions [16] Management's Comments on Operating Environment and Future Outlook - Management expects AI revenues to reach approximately $65 million in 2026, driven by colocation and GPU-as-a-Service offerings [8][9] - The company is positioned for growth with a focus on AI infrastructure and energy sales, which accounted for over 35% of revenues in Q3 2025 [9] Other Important Information - The company has no long-term debt and is completely debt-free, with the lowest payables recorded [10] - The ARMS platform is designed for rapid deployment and customization, allowing for faster scaling compared to traditional hyperscale solutions [12][13] Q&A Session Summary Question: What are your expectations in AI revenues in 2026 and 2027? - Management estimates roughly $50 million in revenues from colocation and an additional $15 million from GPU-as-a-Service, totaling about $65 million in AI revenues for 2026 [8][9] Question: What are the current debts? - The company confirmed it holds no long-term debts and has no obligations that could harm its financial position [10] Question: How is your current cash holding? - The company holds over $90 million, primarily in cash, with some holdings in Bitcoin and Ethereum [11] Question: Can you please describe the ARMS AI-ready modular solution platform? - The ARMS platform is a proprietary modular system developed for rapid deployment, designed for various chip types, primarily NVIDIA [12][13] Question: Can you please go into some detail on your relationship with Supermicro Computers Inc.? - The company has developed a strong partnership with Supermicro for optimized service racks and software integration, which aids in reducing operational costs [14][15] Question: Can you please describe the retail compute platform NeoCloud, who the potential customers or end users will be? - NeoCloud is aimed at smaller AI developers and research institutions, expected to contribute 20%-25% of total revenue, with a focus on high-margin GPU-as-a-Service offerings [16][17]

Core Insights - Digi Power X Inc. reported significant financial improvements for Q3 2025, including a working capital position of $15.1 million, a 2,731% increase from Q3 2024, and a positive net income of $0.3 million compared to a net loss of $6.4 million in the same quarter last year [4][21]. Financial Performance - The company achieved an EBITDA of $1.9 million in Q3 2025, up from a negative EBITDA of $2.5 million in Q3 2024, indicating improved operational efficiency [4][23]. - Total digital currency holdings reached $15.4 million, a 213% increase from $4.9 million in Q3 2024, with Bitcoin holdings valued at $11.2 million and Ethereum at $4.2 million [4][21]. - Revenue from colocation services surged to $13.5 million in the first nine months of 2025, compared to $3.6 million in the same period of 2024 [21]. Strategic Developments - The company is transitioning from cryptocurrency mining to AI-driven infrastructure, with plans to deploy its ARMS 200 Tier III AI data center pod by Q1 2026 [4][5]. - Digi Power X has received approval for an additional 60 MW of power capacity in New York, enhancing its energy infrastructure for future AI expansion [4][10]. - The company is in discussions with potential AI customers to secure long-term infrastructure contracts, although no contracts have been finalized yet [8]. Capital Expenditures and Investments - Approximately $3.1 million was invested in capital expenditures during Q3 2025, up from $1.5 million in Q3 2024, as the company transitions one facility into an AI-Tier III data center [4][21]. - The company has eliminated all long-term debts and reduced accounts payable by over $3.8 million since the end of 2024, strengthening its balance sheet [4][21]. Future Outlook - The company anticipates scaling its AI colocation services to 40 MW of critical IT load capacity by 2026, with further expansion planned for 2027 [12][14]. - Digi Power X aims to launch its NeoCloudz platform in January 2026, providing on-demand access to GPU compute for developers and enterprises [8][14].

Summary of Digi Power X Conference Call Company Overview - **Company Name**: Digi Power X - **Industry**: Energy Infrastructure and Bitcoin Mining - **Stock Ticker**: DGXX (NASDAQ), traded on TSX Venture in Canada - **Market Capitalization**: Approximately $120 million - **Shares Outstanding**: About 44.7 million shares - **Current Stock Price**: Around $2.70 - **Debt Status**: No debt on the balance sheet - **Cash and Crypto Holdings**: Approximately $30 million in cash, Bitcoin, and Ethereum [2][3][4] Core Business Segments - **Power Generation**: Owns a combined cycle power plant and generates predictable revenues from power generation assets [4][10] - **Bitcoin Mining Operations**: Operates Tier 1 data centers and is transitioning to Tier 3 high-performance computing (HPC) data centers [3][4] - **Tier 3 Data Centers**: Focus on building out Tier 3 infrastructure, which is expected to drive future revenues [4][5][17] Market Position and Valuation - **Valuation Disparity**: Currently trading at $1.20 per megawatt, compared to peers at $6.77 per megawatt, indicating potential for significant valuation increase [6][21] - **Future Projections**: If successful in transitioning operations, potential market cap could rise to $375 million based on Tier 3 data center valuations [22] Key Assets - **Alabama Facility**: Transitioning from a 22 megawatt Bitcoin mining operation to a 55 megawatt Tier 3 data center [17][22] - **North Tonawanda Power Plant**: 60 megawatt peaker power plant with potential to increase output to 120 megawatts [10][11] - **Buffalo Site**: 19 megawatt operation powered by hydropower [8] - **North Carolina Development Property**: Valuable site adjacent to a Duke Energy switch yard and a Google data center [9] Revenue Streams - **Revenue Breakdown**: Approximately one-third from crypto mining, one-third from energy sales, and one-third from colocation services [22] - **Electricity Costs**: Competitive electricity cost at $0.04 per kilowatt, with potential sales back to the grid at $0.11-$0.12 per kilowatt during peak demand [10][12] Strategic Collaborations and Innovations - **Partnership with Supermicro**: Aids in retrofitting the Alabama facility and enhances credibility in the market [18][40] - **ARMS 200 Technology**: New AI Ready Modular Solution aimed at providing scalable data center solutions [19][20] - **Provisional Patent**: Filed for ARMS technology, indicating potential for future revenue from selling these modular solutions [20] Future Outlook and Risks - **Execution Risks**: Key risks include securing qualified labor for construction and meeting timelines and budgets for facility transitions [37][39] - **Customer Acquisition**: Ongoing discussions with potential clients for the Alabama facility, with a focus on securing credible tenants to drive valuation re-rates [29][39] Conclusion Digi Power X is positioned to capitalize on the growing demand for energy infrastructure and high-performance computing, with a strong focus on transitioning its operations to Tier 3 data centers. The company’s strategic partnerships and innovative technologies are expected to enhance its market position and drive future growth.

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Core Insights - Digi Power X Inc. has achieved Tier III certification for its ARMS 200 modular AI data center platform, positioning itself among a select few globally to offer such certified solutions [3][11] - The company plans to deliver its first Tier III certified ARMS 200 pod to its Alabama facility by the end of November 2025, with commissioning scheduled for December 2025 [3][11] - Digi Power X is expanding its cryptocurrency holdings and reported a cash and digital asset balance of approximately $29 million as of September 30, 2025, maintaining its Bitcoin and Ethereum positions [8][10] Production and Operations Update - For September 2025, Digi Power X reported production of approximately 25 BTC, valued at about $2.8 million based on a BTC price of $113,300 [14] - The company has increased its Bitcoin inventory from approximately 85 BTC to 100 BTC, representing an 18% increase over the previous month [8] - The company operates with approximately 100 MW of available power across three sites, with plans to expand to over 200 MW through organic growth and acquisitions [10] Strategic Partnerships and Infrastructure - Digi Power X has strengthened its partnership with Supermicro to integrate AI-optimized rack-scale systems into its ARMS platform, enhancing its position as a turnkey provider of Tier III-ready AI infrastructure [5] - Each ARMS unit is designed for rapid deployment within approximately 180 days, offering a faster path to AI capacity compared to traditional data centers [4] Financial Position and Investments - The company has invested approximately $5.8 million year-to-date in capital expenditures and mining infrastructure support equipment, including about $0.3 million in September [14] - Digi Power X's Ethereum position is currently staked to generate an annualized return of roughly 3%, providing an additional revenue stream while maintaining exposure to Ethereum's long-term appreciation potential [8]

Core Insights - Digi Power X Inc reported strong financial results for August, with revenues of $3.5 million from Bitcoin mining and energy trading, and a cash balance exceeding $29 million [1][5][6] - The company is valued at over $100 million with an annualized run rate exceeding $40 million, indicating strong growth momentum [2][6] - The ongoing conversion of the Alabama facility into a tier three AI data center is progressing well, with expectations to announce a tenant by the end of the year [7][9] Financial Performance - Revenues for August reached $3.5 million, driven by Bitcoin mining and energy trading activities [1][5] - The company holds a cash balance of over $29 million, which includes US dollars, Bitcoin, and Ethereum [1][5] - Ethereum holdings have increased significantly, with over 1,000 ether acquired, reflecting a 93% month-over-month growth [5][6] Strategic Developments - The Alabama facility is being converted into a tier three AI data center, with a power capacity of 40MW and total power availability of 55MW [8] - The company is collaborating with Super Micro to implement AI-ready modular solution pods that can scale from half a megawatt to the full capacity of the site [8] - Discussions are ongoing with major institutions for project financing, anticipated to be on favorable terms [9] Market Position - There is increasing institutional interest in Digi Power X, with new research coverage initiated by Alliance Global Partners [10][11] - The company is experiencing heightened demand in the cryptocurrency space, which is described as "white hot" [11] - The focus remains on executing the development of the Alabama facility and securing tenants [11]