tiprankstipranks
Trending News
More News >
Digi Power X (TSE:DGX)
NEO-L:DGX

Digi Power X (DGX) AI Stock Analysis

Compare
59 Followers

Top Page

TSE:DGX

Digi Power X

(NEO-L:DGX)

Select Model
Select Model
Select Model
Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
C$3.50
▼(-7.65% Downside)
Action:ReiteratedDate:01/17/26
The score is primarily held back by weak financial performance—persistent losses, negative gross profit, shrinking equity, and renewed cash burn. Technicals are mixed/neutral with some near-term strength but negative MACD and resistance at longer moving averages. Valuation remains uncertain due to the negative P/E and no dividend yield data.
Positive Factors
Low leverage
Very low reported debt (about $0.2M in 2024) reduces near-term financial risk and interest burden, giving management more runway to repair operations or obtain financing. Low leverage supports resilience during restructuring and limits forced asset sales while other issues are addressed.
Top-line scaling since 2020
The company has demonstrated the ability to grow revenue materially from 2020 levels, indicating market demand and execution capability. This historical scaling suggests a foundation to rebuild margins if cost structure and project economics are corrected, favoring medium-term recovery potential.
Proven positive cashflow year (2023)
A year with positive operating and free cash flow shows the business can be self-funding under certain operating conditions. That demonstrates underlying potential in the business model and project cash economics, meaning management can target reproducible operational fixes to restore sustainable cash generation.
Negative Factors
Negative gross profit and losses
Sustained negative gross profit across multiple years indicates core unit economics are broken: revenue is insufficient to cover direct costs. That prevents operating leverage from restoring profitability and means top-line growth alone won't fix margins without structural changes to costs or pricing.
Eroding equity base
A large decline in equity reduces the firm's loss-absorbing capacity and limits flexibility to fund projects or withstand setbacks. This contraction heightens the likelihood of dilutive equity raises or constrained capital access, impairing strategic options and long-term investment capacity.
Volatile cash flow and 2024 outflow
Recurrent negative and volatile operating and free cash flow, culminating in a very large outflow in 2024, creates persistent liquidity risk. This forces reliance on external capital, raises refinancing risk, and hampers investment in maintenance or growth, threatening medium-term operational continuity.

Digi Power X (DGX) vs. iShares MSCI Canada ETF (EWC)

Digi Power X Business Overview & Revenue Model

Company DescriptionDigi Power X Inc., an energy infrastructure company, develops data centers to drive the expansion of energy assets in the United States. The company operates in three segments: Cryptocurrency Mining, Sales of Energy, and Colocation Services. It also mines for cryptocurrency. In addition, the company is involved in power provision and space rental to customers; and sale of electricity. It serves industrial clients and energy markets. The company was formerly known as Digihost Technology Inc. and changed its name to Digi Power X Inc. in March 2025. Digi Power X Inc. is headquartered in Miami, Florida.
How the Company Makes MoneyDigihost Technology makes money primarily through its cryptocurrency mining operations. The company's revenue model revolves around the mining of digital currencies, particularly Bitcoin, which is achieved by solving complex mathematical problems using high-powered computing hardware. Once mined, these cryptocurrencies can be held as assets on the company's balance sheet or sold in the market for revenue. Additionally, Digihost may engage in strategic partnerships and collaborations to optimize energy usage, reduce operational costs, and enhance profitability. The company's earnings are influenced by factors such as cryptocurrency market prices, mining difficulty, and energy costs.

Digi Power X Earnings Call Summary

Earnings Call Date:Nov 15, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with substantial revenue growth and diversification into colocation services and energy sales. However, this was somewhat offset by a decrease in digital mining revenue and operational downtime due to maintenance. Overall, the company is positioned well for future growth amidst challenges.
Q3-2024 Updates
Positive Updates
Revenue Growth and Expansion
Revenue grew 104% year-over-year to $31.4 million for the 9 months ended September 30, 2024. Expansion of megawatt footprint and colocation agreements with U.S.-based Bitcoin miners are expected to drive future growth.
Positive EBITDA Increase
EBITDA for the 9 months ended September 2024 was $5.5 million positive, representing a nearly 3.5x increase compared to the same period in 2023.
Successful Colocation Service Launch
Colocation service segment produced revenue of $10.7 million in fiscal year 2024, compared to $0 in 2023, highlighting a successful entry into a new revenue stream.
Energy Sales Growth
Energy sales segment produced $10.3 million in revenue, up from $1.7 million in the same period in 2023, utilizing behind-the-meter generation bidding programs.
Negative Updates
Digital Mining Revenue Decline
Digital mining business saw a year-over-year revenue decline from $13.5 million to $10.3 million, primarily due to a reduction in Bitcoin mine following the halving event.
Maintenance-Related Downtime
The company experienced a significant maintenance period at its North Tonawanda power plant, reducing operations for two-thirds of the September quarter.
Company Guidance
In the third quarter of 2024, Digihost reported significant growth and strategic developments. The company's revenue surged by 104% year-over-year, reaching $31.4 million for the nine months ending September 30, 2024, driven by expanding their megawatt footprint and strengthening partnerships with prominent U.S.-based Bitcoin miners. The adjusted EBITDA for the year stood at $3 million, with a positive $5.5 million EBITDA showing a 3.5x increase from the previous year. Digihost's energy infrastructure strategy has led to a consolidated power capacity of approximately 100 megawatts, with a mining hash rate of 3 EH, and plans to expand this capacity significantly in the coming months. Looking forward, the company aims to enhance its high-performance computing capabilities, expecting high-performance computing to be a primary value driver for its power assets. Additionally, Digihost is advancing infrastructure at its Colombiana, Alabama plant, aiming to expand capacity from 22 megawatts to 55 megawatts, and anticipates regulatory approval in New York to double its capacity from 60 megawatts to 120 megawatts.

Digi Power X Financial Statement Overview

Summary
Despite manageable leverage, fundamentals are pressured: negative gross profit in 2022–2024, net losses in 2023–2024, shrinking equity (from ~70.2M in 2021 to ~21.7M in 2024), and volatile/negative operating and free cash flow (notably large outflow in 2024).
Income Statement
34
Negative
Revenue scaled up meaningfully versus 2020 and improved from 2023 to 2024 (annual revenue rose to ~37.0M from ~26.1M), but the latest year showed a revenue decline versus the prior year (negative growth in 2024). Profitability is the core issue: gross profit is negative in 2022–2024, and net income swung from a profit in 2022 to large losses in 2023 and remained negative in 2024—suggesting an unstable earnings profile despite higher revenue.
Balance Sheet
62
Positive
Leverage appears manageable: total debt is low in recent years (about 0.2M in 2024) and was also modest in 2022–2023, which reduces financial risk. However, the equity base has contracted materially over time (from ~70.2M in 2021 to ~21.7M in 2024) alongside recurring losses, and total assets have also trended down from 2021–2024—signaling weakening balance-sheet capacity even with low debt.
Cash Flow
24
Negative
Cash generation is the weakest area. Operating cash flow has been volatile and frequently negative (notably negative in 2024), and free cash flow is negative in most years with a very large outflow in 2024. While 2023 showed positive operating cash flow and free cash flow, it did not persist, indicating that the business is not yet consistently self-funding and may require external capital or improved operating performance to stabilize liquidity.
BreakdownMar 2025Dec 2023Dec 2022Dec 2021Mar 2021
Income Statement
Total Revenue37.00M26.11M24.19M24.95M3.55M
Gross Profit-11.35M-9.67M-6.80M11.13M-4.00M
EBITDA8.91M-6.52M13.83M2.78M-2.35M
Net Income-6.80M-21.89M4.33M289.35K-5.19M
Balance Sheet
Total Assets34.32M42.15M52.60M80.03M16.52M
Cash, Cash Equivalents and Short-Term Investments1.70M341.27K1.85M915.72K31.25K
Total Debt204.36K1.45M1.42M0.005.09M
Total Liabilities12.34M12.90M5.42M41.77M6.08M
Stockholders Equity21.70M29.25M47.17M70.20M10.44M
Cash Flow
Free Cash Flow-21.32M2.68M-18.10M-42.78M-3.40M
Operating Cash Flow-17.53M5.69M-3.41M-8.86M-2.25M
Investing Cash Flow14.72M-7.26M-14.51M-34.72M-1.27M
Financing Cash Flow4.18M56.11K18.86M44.47M2.25M

Digi Power X Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.79
Price Trends
50DMA
3.71
Positive
100DMA
4.69
Negative
200DMA
4.05
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.53
Neutral
STOCH
88.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DGX, the sentiment is Neutral. The current price of 3.79 is above the 20-day moving average (MA) of 3.38, above the 50-day MA of 3.71, and below the 200-day MA of 4.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DGX.

Digi Power X Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
C$269.21M1,254.82-1.32%-5.56%-124.69%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
C$2.81B43.052.88%-9.05%
59
Neutral
C$207.61M-28.58-2.18%-4.34%31.52%
46
Neutral
C$265.66M-8.03-34.34%-23.85%35.05%
45
Neutral
C$2.92M-0.41-13.42%-126.00%
45
Neutral
C$11.81M-3.8417.18%79.56%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DGX
Digi Power X
3.79
1.74
84.88%
TSE:BB
BlackBerry
4.84
-1.48
-23.42%
TSE:STC
Sangoma Technologies
6.35
-0.78
-10.94%
TSE:MTLO
Martello Technologies Group Inc
0.01
-0.01
-50.00%
TSE:PLUR
Plurilock Security Inc
0.13
-0.18
-59.02%
TSE:HAI
Haivision Systems
10.05
5.54
122.84%

Digi Power X Corporate Events

Business Operations and StrategyProduct-Related Announcements
Digi Power X Advances AI Infrastructure Strategy with PTC 2026 Presence and ARMS 200 Rollout
Positive
Jan 20, 2026

Digi Power X announced its participation in the PTC 2026 conference in Honolulu, where President Alec Amar will engage with global digital infrastructure leaders to highlight the company’s role in building energy and data center backbones for AI, cloud, and global connectivity. The company also reported that deployment of its ARMS 200 AI-Ready Modular Solution platform is underway at select U.S. Tier III facilities, positioning Digi Power X as an AI-focused critical infrastructure provider by enabling faster, standardized rollout of high-density, liquid-cooled GPU capacity for AI factories and services such as GPU colocation and GPU-as-a-service, which could strengthen its competitive standing in the rapidly evolving AI data center market.

The most recent analyst rating on (TSE:DGX) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Digi Power X Targets AI Infrastructure Growth With PTC Appearance and ARMS 200 Rollout
Positive
Jan 20, 2026

Digi Power X announced its participation in the PTC 2026 conference in Honolulu, positioning the company among global digital infrastructure decision-makers as it seeks to deepen relationships with industry leaders, potential partners, and institutional stakeholders at the intersection of energy, data centers, and telecommunications. At the same time, the company has begun deploying its ARMS 200 AI-Ready Modular Solution platform across select U.S. Tier III facilities, a standardized, full-stack AI infrastructure architecture that integrates multi-megawatt grid power, modular AI pods, high-density GPU racks, and liquid-cooled, low-latency fabrics, reinforcing Digi Power X’s strategic shift toward becoming an AI-focused critical infrastructure provider and enabling faster, more predictable rollout of AI capacity for colocation and GPU-as-a-Service models.

The most recent analyst rating on (TSE:DGX) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Digi Power X Reaches Settlement With H.C. Wainwright Over Financing Dispute
Negative
Jan 10, 2026

Digi Power X Inc. has entered into a settlement agreement with H.C. Wainwright & Co., LLC to resolve a dispute over compensation related to a registered direct financing completed in July 2025. Under the terms of the agreement, Digi Power X will pay a cash fee of approximately US$840,000 and issue warrants to Wainwright for up to 269,231 subordinate voting shares at an exercise price of US$2.85 per share for five years, subject to TSX Venture Exchange approval, a move that clarifies lingering financing obligations and may have implications for the company’s capital structure and future shareholder dilution.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and Strategy
Digi Power X Signs LOI for 1.3 GW Power Plant Partnership to Power AI Infrastructure
Positive
Jan 7, 2026

Digi Power X has entered into a non-binding letter of intent with Omnis Pleasants LLC, owner of the 1.3 GW Pleasants Power Station in West Virginia, to pursue a strategic partnership aimed at supporting large-scale AI and high-performance computing infrastructure. The proposed deal includes a comprehensive load and interconnection study of up to 1.3 GW, a potential long-term lease of up to 200 acres for deploying Digi Power X’s proprietary ARMS modular Tier III data center platform, and a framework for mutual equity exchange that could see Digi Power X acquire more than a 10% stake in the power plant entity, alongside a joint hydrogen-transition feasibility study for its New York power assets. The parties plan to begin the load study within 30 days and work toward definitive agreements within about 90 days, underscoring Digi Power X’s strategy to secure large, grid-connected power assets to underpin its AI infrastructure growth and energy-transition initiatives.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Digi Power X Leverages 1,150% Liquidity Surge to Accelerate Shift into AI Data Centers
Positive
Jan 6, 2026

Digi Power X reported a 1,150% year-over-year increase in liquidity to approximately $100 million as of January 1, 2026, driven by cash, crypto holdings, and deposits, while remaining debt-free. This strengthened balance sheet is intended to self-fund its 2026 AI infrastructure buildout, including deployment of high-efficiency Tier III AI data centers and power capacity expansion across U.S. locations. Operationally, the company has begun rolling out its ARMS 200 modular AI-ready data center platform, with the first system now being installed and tested at its Alabama site to host a high-density NVIDIA B200 GPU cluster. Digi Power X also plans to launch its NeoCloudz GPU-as-a-Service platform in the first quarter of 2026, offering scalable GPU compute to AI startups, enterprises, research institutions and developers, a move that marks a strategic transition from crypto mining toward becoming a provider of cloud-based AI infrastructure services.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Digi Power X Appoints New CTO to Boost AI Infrastructure
Positive
Dec 8, 2025

Digi Power X has appointed Jagan Jeyapaul as its new Chief Technology Officer, a move expected to enhance the company’s technological capabilities and strengthen its position in the AI infrastructure sector. With Jeyapaul’s extensive experience in secure, high-availability cloud environments, the company aims to accelerate its Tier-3 modular data-center deployments and scale AI infrastructure, positioning itself as a global leader in modular AI data-center solutions and advanced GPU compute platforms.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Digi Power X Advances AI Infrastructure with New GPU Cluster and NeoCloudz Launch
Positive
Dec 3, 2025

Digi Power X announced the deployment of its first NVIDIA B200 GPU cluster in Alabama, marking a significant step in its AI infrastructure roadmap. The company plans to launch its NeoCloudz platform in Q1 2026, providing scalable GPU compute access for AI startups and enterprise teams, and aims to expand its global distribution through collaboration with Supermicro. This strategic shift is part of Digi Power X’s transition from cryptocurrency mining to AI-focused infrastructure, with a phased deployment plan to utilize its nearly 200 MW of available power capacity.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and Strategy
Digi Power X Grants Stock Options and RSUs to Key Personnel
Positive
Nov 20, 2025

Digi Power X announced the grant of 1,430,000 stock options and 700,000 restricted share units to its officers, directors, management, key consultants, and employees. This move is part of the company’s stock option and restricted share unit plans, with stock options exercisable at C$5.00 for five years and RSUs vesting over three years. The announcement is expected to impact the company’s operations by potentially enhancing employee retention and aligning interests with stakeholders, thereby strengthening its market position.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Digi Power X Achieves Profitability and Advances AI Infrastructure Plans
Positive
Nov 13, 2025

Digi Power X reported positive net earnings for Q3 2025, marking a significant turnaround from the previous year, with a strong balance sheet and no long-term debts. The company expanded its digital currency holdings and invested heavily in AI infrastructure, including the commencement of its first ARMS 200 Tier III AI data center pod and a partnership with Super Micro Computers for a GPU cluster deployment. These strategic moves aim to enhance Digi Power X’s position in the AI infrastructure market, with increased energy sales revenue and operational efficiencies contributing to improved margins.

The most recent analyst rating on (TSE:DGX) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Digi Power X stock, see the TSE:DGX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 17, 2026