0001213900-26-037677
SEC filingDigi Power X is pivoting from bitcoin mining to AI infrastructure, with revenue declining 8% YoY and net loss widening to $28.4M.
Digi Power X Inc. describes itself as an innovative energy infrastructure company that develops cutting-edge data centers to drive the expansion of sustainable energy assets. With multiple sites, including state-of-the-art combined cycle and high-capacity substations, the company taps into and enhances the energy grid, supporting both industrial clients and broader energy markets. Digi Power X focuses on developing, owning, and operating data center facilities and delivering enterprise colocation and AI/GPU infrastructure services. The Corporation also owns a 60 MW gas fired power plant in North Tonawanda that currently operates as a peaker plant providing the grid with electrical power in times of peak demand.
The filing does not explicitly define separate reporting segments. However, the company operates two primary business activities: digital currency mining (bitcoin) through mining pool participation, and the development and operation of data centers for high-performance computing (HPC) and AI workloads. No revenue share by segment is disclosed.
Key products and platforms include: the ARMS 200 (AI-Ready Modular Solution), a proprietary modular Tier 3 AI data-center pod designed for rapid deployment and supporting next-generation AI GPUs and liquid cooling; NeoCloudz™, a GPU-as-a-Service platform offering flexible high-performance compute access; and a Gemini exchange account used for holding and transacting digital currencies, with approximately 51 bitcoins and 1,010 Ethereum as of March 31, 2026. The company also utilizes cold storage solutions for digital asset security.
The company's go-to-market strategy involves offering colocation services and GPU-as-a-Service via NeoCloudz. For the year ended December 31, 2025, the Corporation primarily recognized revenues with organizations in the digital currency space. As of that date, the number of active miners under self-mining and colocation agreements was approximately nil and 9,700, respectively. The company is in advanced negotiations with customers for 2026 covering both AI data-center colocation and GPU-as-a-Service offerings, though no contracts are guaranteed.
The digital currency mining industry is highly competitive. Named competitors in bitcoin mining include Riot Platforms, Inc., MARA Holdings, Inc., Bitfarms Ltd., Argo Blockchain Plc, Hut 8 Corp., HIVE Digital Technologies Ltd., and Cipher Digital Inc. As the company expands into large-scale data centers for HPC and AI, it also faces competition from established operators such as Equinix, Inc., Digital Realty Trust, Inc., and CoreWeave, Inc., as well as certain bitcoin mining peers.
Strategic pillars articulated in the filing include: pivoting from a solely digital asset mining-focused business into a power-backed AI infrastructure and Tier 3 data-center platform; deploying the ARMS 200 modular data-center pod at the Alabama facility in the second quarter of 2026; expanding the power portfolio to 123 MW in North Tonawanda, 18.7 MW in Buffalo, 70 MW in Alabama, and 200 MW available in North Carolina for future development; developing the NeoCloudz GPU-as-a-Service platform; and achieving 100% carbon neutrality by 2026 and 100% renewable energy by 2030 through initiatives like the Digigreen program and community solar subscriptions.
As of March 31, 2026, the Corporation employed 17 individuals and engaged 18 consultants and contractors. The company strives to attract professionals with expertise in digital assets, technology, engineering, compliance, and finance. No employees are represented by a labor union, and no work stoppages have been experienced.
For the year ended December 31, 2025, Digi Power X reported total revenue of $34.2 million, an 8% decline from $37.0 million in 2024. The decrease was driven by a 66% drop in bitcoin mining revenue to $3.5 million (from $10.3 million) as the company mined only 34 bitcoins versus 188 in the prior year, reflecting a deliberate strategic pivot toward colocation and AI infrastructure. Colocation revenue grew 11% to $17.5 million, and energy sales surged 186% to $13.2 million, partially offsetting the mining decline. Cost of revenue decreased 23% to $37.4 million, primarily due to lower depreciation on nearly fully depreciated mining equipment and reduced mining-related costs at the Alabama site as it transitioned to a Tier III data center.
Net loss widened to $28.4 million from $12.4 million in 2024, driven by a dramatic swing in operating expenses from a $0.4 million gain to a $23.1 million expense. Key drivers included an $8.0 million share-based compensation expense (up from $2.5 million), a $4.1 million loss on digital currency revaluation (vs. a $0.9 million gain in 2024), a $3.5 million foreign exchange loss (vs. a $5.2 million gain), and a $3.1 million loss on warrant liability revaluation. Basic and diluted loss per share was $(0.64) versus $(0.40) in the prior year.
The company operates three primary revenue segments. Bitcoin mining revenue fell sharply as management prioritized colocation and AI data center development over proprietary mining. Colocation services revenue increased 11% YoY, supported by existing hosting agreements, though Q4 2025 colocation revenue declined versus Q4 2024 due to the transition of one hosting location to AI buildout. Energy sales from the natural gas combined cycle plant more than doubled, benefiting from the plant selling power to the grid at peak rates during 2025, compared to being offline for maintenance in Q4 2024. The company also held 133 bitcoins and 1,009 Ethereum as of December 31, 2025, with a combined inventory value of $14.8 million.
Management outlined a clear strategic pivot from cryptocurrency mining to AI-driven infrastructure. The company plans to deploy 55 MW of power toward AI projects by Q4 2026, with 5 MW in Q1 2026, 15 MW in Q2, and 30 MW in Q3. Key milestones include full activation of the first ARMS 200 Tier III AI data center pod in Q2 2026 and the first NVIDIA B200 GPU cluster becoming fully operational in Q2 2026 in partnership with Super Micro Computers. The company also launched its retail compute platform NeoCloudz in January 2026. Digi Power raised $114.5 million in financing during 2025 to fund this transition, including a $91.5 million ATM program. The company targets 100% carbon neutrality by end of 2026 and 100% renewable energy by 2030. Management noted that additional financing may be required to fund the AI data center initiative and the ongoing transition from cryptocurrency mining.
Digi Power X Inc. ended 2025 with a strong liquidity position. Cash and cash equivalents stood at $78.5 million, a dramatic increase from $1.7 million at year-end 2024, primarily fueled by equity offerings. Digital currencies (Bitcoin and Ethereum) totaled $14.8 million, measured at fair value (Level 1). Total assets increased to $134.1 million from $34.3 million. The company had no outstanding debt (loans payable, mortgage, or lease liabilities) as of December 31, 2025, reflecting deleveraging. Shareholders' equity rose to $123.3 million from $22.3 million, driven by share issuances and warrant exercises.
The company disclosed a purchase commitment of $5.3 million for high-performance computers related to its Tier III AI data center project. The equipment is expected to ship within one year. Subsequent to year-end, a payment of $4.5 million was made under this agreement. No other material commitments were noted.
There were no share buybacks or dividends during the year. Capital expenditures totaled $17.3 million (cash flow basis), including $6.2 million in property, plant, and equipment additions and $11.1 million in deposits for equipment, largely attributed to the AI data center build-out. Debt decreased by $0.1 million as the remaining loan payable was fully repaid.
The company operates four reporting segments: cryptocurrency mining, sales of energy and electricity, colocation services, and Tier III AI data centers. For 2025, cryptocurrency mining generated $3.5 million in revenue (down 65.8% YoY), with a net loss of $7.5 million. Sales of energy and electricity brought $13.2 million (up 21.1%), with a net loss of $14.2 million. Colocation services contributed $17.5 million (up 10.6%), with a net loss of $6.6 million. The AI data center segment was in development, with no revenue and $0 net loss, holding $11.0 million in assets. All segments are located in the United States.
Digi Power X Inc. faces significant risks from its strategic pivot into AI and HPC data center operations. This expansion diverts capital, personnel, and power capacity from core bitcoin mining, potentially limiting hashrate growth and market share. The company also relies on a single mining pool (Foundry Pool), exposing it to unilateral term changes or payment cessation. Bitcoin halving events (last in April 2024, next in March 2028) reduce block rewards, and profitability depends on hashrate, network difficulty, and bitcoin price. The company may need to sell cryptocurrency holdings at unfavorable prices to fund operations.
Regulatory uncertainty is high: cryptocurrencies may be restricted or outlawed; the company could be deemed a money services business, triggering compliance costs. The loss of foreign private issuer status as of January 1, 2026 increases SEC reporting, US GAAP compliance, and Section 16 insider reporting obligations. U.S. trade policies and tariffs on mining equipment imports add cost pressures. Environmental regulations and taxes targeting energy consumption could increase operating costs.
Material weaknesses in internal control over financial reporting were identified for prior years, posing risks of misstated financial statements. The company has a limited operating history and reported a net loss of $28.4 million for 2025. It may need additional financing, which could be dilutive or impose restrictive covenants. PFIC and CFC tax rules could adversely affect U.S. holders.
Cryptocurrency holdings are exposed to cybersecurity threats, hacks, and loss of private keys. The company’s expansion into AI/HPC introduces risks from rapidly evolving regulations and potential misuse of AI technologies. Technological obsolescence in mining hardware requires continuous capital investment.
The bitcoin mining and data center markets are highly competitive, with larger, better-capitalized rivals. The company’s ability to attract data center customers depends on demand for HPC/AI services, which is uncertain. Momentum pricing and volatility in cryptocurrency markets could adversely affect the value of mined coins.
No cash flow statement was included in the provided document excerpt. The filing references the Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024 at page F-6, but the actual data is missing. Therefore, no analysis of operating cash flow, investing, financing, or capital expenditures can be performed. It is recommended to obtain the full filing to assess the cash flow trends.