0001213900-26-057115
SEC filingDigi Power X reported a net loss of $4.65M in Q1 2026, widening from $1.63M a year ago, as revenue fell 27% amid the transition from crypto mining to AI infrastructure.
Digi Power X's Q1 2026 revenue totaled $6.79M, a 26.8% decline from $9.28M in Q1 2025. The drop was driven by a 40.5% fall in colocation services ($3.03M vs $5.08M) as the company repurposed a hosting site for AI infrastructure, and a near-cessation of cryptocurrency mining revenue ($47.7K vs $765.9K) as mining operations were scaled back. Sale of energy rose slightly to $3.72M from $3.43M, reflecting higher grid prices and reduced internal mining consumption.
Gross loss improved to $0.80M (11.8% of revenue) from $1.52M (16.4% of revenue) in the prior year, driven by lower power costs as mining activity declined. However, operating expenses (including foreign exchange gains and digital currency revaluation) rose to $5.14M from $2.89M, primarily due to a $3.76M loss on revaluation of digital currencies (vs $0.45M loss) and a $1.62M increase in general and administrative expenses. Net loss widened to $4.65M from $1.63M, and EPS was -$0.07 compared to -$0.05.
As of March 31, 2026, total assets were $126.9M, down from $134.1M at year-end 2025, mainly due to a $20.7M decrease in cash and cash equivalents (from $78.5M to $57.8M). Digital currencies fell to $13.6M from $14.8M, reflecting revaluation losses. Property, plant and equipment increased to $26.2M from $23.0M, as the company invested $15.2M in capital expenditures during the quarter. Long-term deposits and other assets rose to $24.3M from $13.7M, primarily equipment deposits for AI projects.
Total liabilities declined to $8.0M from $10.9M, driven by a reduction in accounts payable and accrued liabilities ($3.7M vs $6.4M) and a slight decrease in warrant liabilities. Shareholders' equity attributable to common shareholders was $118.0M, down from $123.3M, due to the net loss and foreign currency translation losses. The company had positive working capital of $67.2M, including digital currencies of $13.6M.
Operating cash flow was negative $6.40M in Q1 2026, an improvement from negative $10.11M in Q1 2025, primarily due to a smaller net loss adjusted for non-cash items and less working capital outflow. Investing activities used $16.17M, including $15.17M for property, plant and equipment and $1.00M for an investment in Alpha Square Fund. Financing activities provided $1.91M from contributions from non-controlling interest. Free cash flow (operating cash flow minus capex) was negative $21.57M.
The company's cash burn reflects heavy capital spending on AI data center buildout. Subsequent to quarter end, the company raised $102.9M through at-the-market equity sales, strengthening its liquidity position to fund the Cerebras agreement and other initiatives.
Management emphasized the strategic pivot from cryptocurrency mining to AI-driven infrastructure. Key developments include:
Management noted that the company's ability to continue as a going concern depends on executing its AI strategy, obtaining financing for Phase 2, and managing operating expenses. No quantitative guidance was provided.
Segmented performance: The cryptocurrency mining segment generated only $47.7K in revenue (none from Bitcoin, only Ethereum staking) and an EBITDA loss of $66K, reflecting the wind-down of mining. Sale of energy contributed $3.72M in revenue but an EBITDA loss of $1.68M, due to power costs. Colocation services generated $3.03M in revenue and an EBITDA loss of $1.46M, as margins were compressed by infrastructure transition. The AI data center segment had no revenue or costs yet.
Share-based compensation was $1.35M, of which $699K related to RSUs and $654K to stock options. General and administrative expenses included $1.84M in office and administrative costs, $1.01M in professional fees, and $128K in regulatory fees. The company held 166 Bitcoin (cost basis $14.3M) and 1,013 Ethereum (cost basis $3.0M). Warrant liabilities were remeasured at $2.08M, with a $0.78M gain recognized. Subsequent events included the Cerebras agreement and substantial equity issuance.