Digi Power X NASDAQ: DGXX said its first-quarter 2026 results reflected a strategic transition away from cryptocurrency mining and toward AI computing infrastructure, with management highlighting positive adjusted EBITDA, a debt-free balance sheet and the start of AI-related revenue in May.
Chief Executive Officer Michel Amar said the quarter marked “an inflection point” for the company as it deliberately reduced legacy crypto mining operations to make room for AI compute and colocation revenue. Revenue for the three months ended March 31, 2026, was $6.8 million, which management said reflected the planned wind-down of legacy operations.
The company reported adjusted EBITDA of $1.1 million for the quarter, compared with negative adjusted EBITDA of $1.3 million in the prior-year period. Amar said the improvement reflected disciplined capital management, with adjusted EBITDA calculated after deducting non-cash items from the company’s net loss.
Balance Sheet Strengthens as Company Maintains No Long-Term Debt
As of March 31, 2026, Digi Power X reported cash and cash equivalents of $71.4 million, working capital of $67.2 million and digital asset holdings of $13.6 million, up 208% year over year. Net fixed assets were $26 million, up 29% from the prior year, which management attributed to capitalized investment at the company’s Columbiana, Alabama facility.
During the Q&A portion of the call, Amar described March 31 cash as approximately $73 million. Management also said the company had no long-term debt as of March 31 and continued to have no debt as of May 15.
The company gave updated liquidity figures for May 15, stating in prepared remarks that it had “approximately under $25 million” in cash and cash equivalents, about $15 million in digital assets and roughly $45 million in year-to-date capital expenditures deployed toward GPU equipment and data center build-out, primarily at Columbiana. Later in the call, Amar referred to approximately $125 million in cash and $15 million in digital assets, describing the balance sheet as the strongest in the company’s history.
Amar said the company is in discussions with lenders and has signed a term sheet with a lender as it seeks to fund future data center growth through debt financing rather than additional equity dilution. He said management is considering a 70/30 loan-to-cash financing structure for future development.
Strategic Pivot From Bitcoin Mining to AI Infrastructure
Amar called the decision to transition from Bitcoin mining to AI infrastructure “the most consequential strategic decision in company history.” He said Bitcoin mining economics had become increasingly compressed and cyclical, while demand for AI compute infrastructure was entering a period of significant growth tied to model training and inference scaling.
Management said Digi Power X has spent years assembling power-rich sites in Alabama, Niagara Falls, North Carolina and Buffalo. Amar said the company’s ownership of substations, utility interconnections and a combined-cycle gas power plant acquired in 2022 gives it a speed-to-market advantage for AI infrastructure projects.
“We don’t need to wait for an interconnection with the utility,” Amar said, adding that the company’s power assets helped it secure and move quickly on a major contract with what he described as a major frontier AI company.
AI Revenue Begins With NeoCloudz GPU Offering
Digi Power X said NeoCloudz, its GPU cloud business, began generating its first AI revenue in May 2026 through an initial deployment of NVIDIA B200 and B300 GPUs at the Alabama facility. Amar said the first bare-metal GPU rental contract went live on the day of the call after the company received, tested, commissioned and delivered the GPUs to its customer.
The company said it executed a 24-month bare-metal GPU rental agreement with SubQuadratic AI and delivered on time. Amar credited coordination among NVIDIA, Supermicro and Digi Power X’s Alabama team for meeting the service date.
Management said the first GPU contract represented slightly less than 1 megawatt of capacity and that the company expects to deliver an additional 6 megawatts by the end of 2026, with revenue potentially beginning in the fourth quarter of 2026 or the first quarter of 2027.
Columbiana Campus and Power Capacity Plans
The company is targeting the first phase of its Columbiana, Alabama AI campus to be ready for service in December 2026, with completion expected in the first quarter of 2027. Amar said the first colocation phase is expected to be about 15 megawatts, followed by an additional 25 megawatts in the first quarter of 2027, for a total of 40 megawatts.
Amar said the colocation business is structured as a modified lease model and includes a 10-year contract valued at $1.1 billion, expandable to $2.5 billion, with what he described as one of the world’s top chipmakers. He said the structure is intended to provide stable income without requiring the same level of GPU capital expenditures.
The company said it currently has about 210 megawatts connected to the grid and expects total secured capacity of approximately 393 megawatts across owned sites after additional capacity comes online. Amar also referenced a previously announced letter of intent involving a 1.3-gigawatt power plant in West Virginia, which he said the company is better positioned to explore for potential expansion in 2028 through 2030.
Management Outlines Multi-Year Revenue Goals
Amar said Digi Power X’s strategy is to convert its available power into AI revenue through both colocation and GPU-as-a-service offerings. He emphasized that access to power is a key bottleneck for many companies in the AI infrastructure market.
Management outlined the following goals:
- 2027: 90 megawatts of colocation and 10 to 12 megawatts of GPU-as-a-service, for a targeted annual run rate of about $300 million.
- 2028: An additional 50 megawatts of colocation and 20 megawatts of GPU bare-metal capacity, for a targeted annual run rate of $450 million to $500 million.
- 2029: An additional 100 megawatts of colocation and 50 megawatts of GPU bare-metal capacity, for a targeted annual run rate of $800 million to $1 billion.
Amar said those targets depend on the company securing the financial strength and debt financing instruments needed to support the build-out. He said Digi Power X is receiving interest from institutions, partners and lenders as it pursues its growth plan over the next 36 months.
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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