The $1.1B colocation agreement and NeoCloudz going live validate the AI pivot thesis. Monitor the 10-Q for Phase 1 colocation revenue ramp and any updates on the $175M ATM drawdown pace. The FY2027 $250-300M revenue target implies a ~10x revenue multiple on current market cap — execution risk is high but the setup is compelling. Watch for debt financing announcements to reduce ATM dilution.
Price Chart
Executive Summary
Digi Power X reported Q1 2026 revenue of $6.8M (down 27% YoY from $9.3M) and a GAAP net loss of $(4.7)M, wider than the $(1.6)M loss in Q1 2025. Adjusted EBITDA turned positive at $1.1M vs $(1.3)M a year ago. The headline numbers reflect the planned wind-down of legacy crypto mining revenue as the company pivots to AI infrastructure. The transformative event is the signing of a $1.1B, 10-year AI colocation agreement and the NeoCloudz GPU cloud going live with first AI revenues in May 2026, providing a clear path to the FY2027 revenue target of $250-300M. The balance sheet remains fortress-like with ~$125M cash, $15M in digital assets, and zero long-term debt, though a $175M ATM offering filed 7 days ago introduces ongoing dilution risk.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $6.8M vs $9.3M YoY (-27%), reflecting planned wind-down of legacy crypto mining
- GAAP net loss $(4.7)M vs $(1.6)M YoY, driven by pre-revenue AI infrastructure investment
- Adjusted EBITDA turned positive at $1.1M vs $(1.3)M YoY, a $2.4M improvement
- Signed a $1.1B, 10-year AI colocation agreement with a leading AI infrastructure company
- NeoCloudz GPU-as-a-Service went live in May 2026, generating first AI revenues from NVIDIA B200/B300 GPUs
- Cash and equivalents ~$125M with $15M in digital assets and zero long-term debt as of report date
- $45M YTD capex deployed at Columbiana, Alabama facility for GPU equipment and data center buildout
- FY2027 revenue target of $250-300M: colocation $80-200M, GPUaaS up to $100M annualized run-rate, energy ~$12M
- ATM offering filed May 8, 2026 increased capacity to $175M, with $72.4M already sold — ongoing dilution risk
- Working capital $67.2M vs $(0.8)M a year ago, a $68M YoY improvement
Financial Impact
Transformational: $1.1B colocation contract + NeoCloudz live revenue + $125M cash fortress. FY2027 revenue target of $250-300M vs FY2025 total revenue of $34.2M.
Risk Factors
- Ongoing ATM dilution: $72.4M of $175M already sold, with 3% commission to A.G.P.
- FY2027 revenue target of $250-300M is aspirational and depends on timely Phase 1/2 colocation commissioning and GPU deployment
- GAAP net loss widening to $(4.7)M from $(1.6)M YoY; profitability timeline uncertain
- Legacy crypto mining revenue declining faster than AI revenue ramps — Q1 revenue fell 27% YoY
- No analyst consensus available for Q1 2026; market expectations are unanchored
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-057139 |
| Document: ea0290789-8k_digi.htm | 0001213900-26-057139 |
| Document: 0001213900-26-057139-index-headers.html | 0001213900-26-057139 |
| Document: 0001213900-26-057139-index.html | 0001213900-26-057139 |
| Document: 0001213900-26-057139.txt | 0001213900-26-057139 |
| 8-K Data (Synthetic) | 0001213900-26-057139 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | EFFECT | $3.66 $2.96 | ▲ +19.13% | ▲ +22.30% | $2.22 (+39.34%) |
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Mar 31, 2026 29w ago | 8-K | $2.16 $3.11 | ▲ +43.98% | ▲ +34.26% | $2.22 (+2.78%) |
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