Digi Power X Conference: CFO touts $78.5M cash surge, AI data center pivot and 60MW hydro approval

Key Points

• Balance sheet strength: Cash rose to $78.5 million from $1.7 million year-over-year, working capital increased to $86.3 million and shareholders’ equity to $123 million, and management says the company has no long-term debt and can self-fund an initial $40 million capex program.
• Strategic pivot to AI: Digi Power X is shifting from Bitcoin mining to AI data centers, leveraging owned power generation and a regulatory approval for 60 MW of upstate New York hydropower within a total site power capacity of 400 MW.
• Revenue timing and activation targets: The company expects its first AI revenues as early as end‑April 2026, aims to activate 90 MW of colocation and 10 MW of GPU-as-a-Service (100 MW total) in 2026–27, and plans to finance GPU expansion via customer deposits and equipment lease financing.

Digi Power X NASDAQ: DGXX Chief Financial Officer Paul Ciullo said the company’s fiscal 2025 results reflected what he described as a “transformational year,” highlighted by a significantly strengthened balance sheet and a strategic pivot away from Bitcoin mining toward artificial intelligence-focused data center infrastructure.

Fiscal 2025 results and balance sheet changes

Ciullo said the company’s cash position increased to $78.5 million in 2025 from $1.7 million in 2024, which he characterized as an increase of more than 4,000%. He also reported year-end working capital of $86.3 million, compared to negative working capital of $3.1 million in the prior year.

According to Ciullo, shareholders’ equity rose 453% to $123 million from $22.3 million at the end of fiscal 2024. He added that the company has “no long-term debts outside of our normal course payables.”

On the revenue side, Ciullo said colocation revenue grew 11% to $17.5 million in 2025, while energy revenue increased 186% to $13.2 million. He framed both as core building blocks for the company’s AI data center build-out, rather than “legacy segments.”

Strategic pivot from crypto mining to AI infrastructure

Ciullo said Digi Power X transitioned from Bitcoin mining to AI infrastructure as part of a strategy to use its existing power infrastructure to generate higher revenues. He said the pivot is intended to allow the company to “get a much higher multiple through AI data centers” by leveraging existing infrastructure.

Ciullo also noted that the company owns its own power generation, which he said supports both energy sales and AI infrastructure growth.

Power access and positioning for AI demand

Asked how Digi Power X is positioning to capture AI infrastructure demand at scale, Ciullo emphasized three areas:

• Balance sheet strength: Ciullo said the company’s working capital position and balance sheet provide flexibility as it pursues growth.
• Hydropower allocations in New York: He said the company received regulatory approval for 60 megawatts of hydroelectric power capacity in upstate New York that is “available for immediate deployment.” Ciullo argued that clean, low-cost hydropower is highly sought after for AI workloads as customers pursue sustainability mandates, and he described power as the “gating constraint” for global AI data center expansion.
• Financing approach for GPUs: Ciullo said the company’s GPU fleet expansion is designed to be financed through customer deposits and equipment lease financing, and he said the company expects positive cash flows from the first day of GPU deployment.

Expansion plans, sites, and funding approach

Ciullo said the company’s balance sheet enables Digi Power X to self-fund an initial capital expenditure program of $40 million in fiscal 2026 and beyond, while moving quickly on site acquisition and permitting without relying on third-party lenders. He also described the company’s “zero debt status” as a competitive advantage amid investor concerns about interest expense and refinancing risk.

On site capacity, Ciullo said Digi Power X has an Alabama site with 70 MW approved and more than 50 acres, an upstate New York site with 60 MW of approved hydropower, and a North Carolina site with 40 acres. He added that across its sites, the company has “total power capacity available” of 400 MW, which he called a substantial asset base that management is “systematically activating.”

Ciullo also outlined key accomplishments during fiscal 2025:

• Regulatory approval for 60 MW of hydroelectric power capacity in upstate New York.
• North Carolina expansion through acquisition of an additional 20 acres, bringing the site to 40 acres with zoning approval for advanced AI data center deployment.
• Alabama site development, including 70 MW approved and a contract to acquire 33 additional adjacent acres.
• Establishment of US Data Centers Inc., with Digi Power X holding a majority equity stake as of Dec. 31, 2025; Ciullo said this structure offers “meaningful upside” as USDC raises independent growth capital “without diluting Digi shareholders.”
• $11 million invested in AI infrastructure during 2025, including $6.6 million in “tier three asset projects” in Columbiana, Alabama, supporting what he described as the operational foundation for the company’s ARMS 200 platform and NeoCloudz’s GPU-as-a-Service revenues.

AI revenue timing and activation targets

Looking ahead, Ciullo said Digi Power X expects to generate its first AI revenues “as early as the end of April 2026,” contingent on completion of GPU testing underway at its Columbiana, Alabama facility.

He also said the company is in final discussions on a colocation agreement that, if executed, would be a milestone in the transition to recurring AI infrastructure revenues. Ciullo noted that the company has signed a non-binding letter of intent and that negotiations and legal review of definitive documentation are ongoing. He added that any definitive agreement and transactions remain subject to conditions including completion of due diligence.

For 2026 and 2027, Ciullo said the company’s strategic goal is to activate 90 MW of colocation capacity and 10 MW of GPU-as-a-Service capacity, representing 100 MW of total live AI infrastructure across its multi-site portfolio.

About Digi Power X NASDAQ: DGXX

Digihost Technology Inc operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.

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