Digi Power X: From Bitcoin Mining to AI Compute — A Pivot With Cash
The Pivot: From Hash to HPC
Digi Power X (DGXX) reported its Q2 2026 results on August 14, showcasing a decisive shift away from legacy Bitcoin mining into the high-stakes arena of AI compute and colocation. The company's data center ambitions are now tangible: revenues of $6.6 million reflected the planned wind-down of mining, while $1.1 million came from the first GPU bare-metal rentals using B200 and B300 GPUs at the Columbiana, Alabama facility. “GPU revenue recognized for $1.1 million, representing the company's first GPU bare-metal rental initial fleet of B200 and B300 GPUs deployed at the Columbiana, Alabama facility” — Michel Amar, CEO · 2026-08-14 — a modest start, but a symbolic one.
The pivot is not merely a change in revenue mix; it's a change in identity. The company's keyword trajectory shows bare metal and debt financing dominating the call, replacing the power plant and self-mining language of prior quarters. The CEO's focus on financial engineering — engaging Goldman Sachs for syndicated debt and raising capital through an ATM — underscores the strategic intent to scale without diluting shareholders.
The Balance Sheet: From Negligible to Substantial
The most striking shift is on the balance sheet. A year ago, the company had $1.7 million in cash and $37 million in total assets. Today, it holds approximately $150 million in cash and cash equivalents, no long-term debt, and total assets of $279 million. “We have no long-term debt. Total assets of $279 million versus $37 million a year ago.” — Michel Amar, CEO · 2026-08-14 The company has already deployed about $110 million in CapEx toward the Alabama AI campus, including equipment deposits for the Cerebras contract.
This balance sheet strength is the foundation for the next phase. The company is in advanced debt financing discussions, aiming to recoup a portion of the CapEx and preserve cash for expansion. The CEO's commitment to limiting dilution is a recurring theme, and he notes that most ATM capital was raised at prices above the current stock price.
This stands in contrast to prior quarters when survival was the goal.I think we raised most of our ATM capital early Q2 at an average of ... much higher of our stock price today. I think our last ATM draw was at $7.25 or $7.50 a share. So we did not draw any dollars below that.
Execution and Catalyst: Alabama and Beyond
The immediate catalyst is the Columbiana campus: Phase 1 (15 MW) targeting ready-for-service in December 2026, and Phase 2 (25 MW) by end of Q1 2027. The CEO confirmed that all long lead equipment has been secured and deliveries are ahead of schedule. “We are actually few weeks earlier than schedule. So we feel very confident that we will be ready by December for Phase 1.” — Michel Amar, CEO · 2026-08-14 The company expects Q3 revenue to more than double sequentially, driven by GPU rentals and colocation.
Beyond Alabama, the pipeline is ambitious: a New York footprint (60 MW in North Tonawanda, 18 MW in Buffalo) grandfathered under the moratorium, allowing conversion to colocation without power expansion. “We are grandfathered in New York. We cannot expand our current footprint of power. But our goal is to just convert another colocation deal of 40 to 50 megawatts and GPU-as-a-Service or bare-metal for another 8 to 10 megawatts.” — Michel Amar, CEO · 2026-08-14 North Carolina land is being prepared for 150-200 MW by decade's end, and a letter of intent with the 1.3 GW Pleasants Power Station site is progressing cautiously. This pipeline is consistent with the global surge in AI data centers, though the tape shows that theme has cooled in the last 30 days.
Riding the AI Infrastructure Wave
The company is now a micro-cap player in a red-hot but crowded field. Its first GPU revenue and substantial cash position are advantages, but the path to profitability will require flawless execution and access to capital. The CEO's bullishness is palpable: “We have all the cards in our hands. A little bit of faith from our shareholders, the same faith that I give to my company... we will be in a very amazing situation in the next 3 months to 6 months.” — Michel Amar, CEO · 2026-08-14 For a stock that has been flat over the past week, the coming quarters will determine whether this is a genuine turnaround or a well-financed gamble.