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Digi Power X (TSE:DGX)
:DGX

Digi Power X (DGX) AI Stock Analysis

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TSE:DGX

Digi Power X

(DGX)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
Digihost Technology's stock score reflects a mixed outlook. The company's financial performance shows significant challenges with ongoing losses, impacting overall profitability. However, the technical analysis indicates strong upward momentum, suggesting market optimism. While the valuation is hindered by a negative P/E ratio, the earnings call and recent corporate events point to potential growth opportunities through strategic expansion and revenue diversification. Investors should weigh these opportunities against the persistent financial challenges.

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

Digi Power X Business Overview & Revenue Model

Company DescriptionDigi Power X Inc. operates as an energy infrastructure company. The Company develops cutting-edge data centers to drive the expansion of energy assets.
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
Digihost Technology faces significant financial challenges with persistent losses and negative margins. While revenue is growing, cost control is crucial to improve profitability. The balance sheet remains relatively stable with low leverage, but declining equity is a concern. Cash flows show some generation capacity, yet negative free cash flow raises sustainability issues. Strategic cost management and revenue stabilization are essential for future improvement.
Income Statement
35
Negative
The company's income statement reveals significant challenges with negative profitability and fluctuating revenues. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of -23.47%, indicating cost inefficiencies. The net profit margin stands at -38.02%, reflecting substantial losses. However, there is notable revenue growth from the previous year, suggesting some potential for recovery if costs can be controlled.
Balance Sheet
45
Neutral
The balance sheet highlights a moderate financial position with low debt levels. The debt-to-equity ratio is minimal at 0.02, indicating low leverage. However, the stockholders' equity has decreased over the years, affecting the equity ratio, which stands at 70.19%. The return on equity is negative, at -59.13%, due to continuous losses, posing a risk to shareholder value.
Cash Flow
40
Negative
Cash flow analysis shows mixed signals. The operating cash flow to net income ratio is positive, at 0.02, indicating some cash generation despite losses. However, free cash flow is negative, showing a decline in the TTM period, leading to a free cash flow to net income ratio of 0.18, which is concerning for sustainability.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue42.15M26.11M24.19M24.95M3.55M0.00
Gross Profit-9.90M-9.67M-6.80M11.13M-4.00M0.00
EBITDA-5.31M-6.52M-5.10M2.78M-2.35M0.00
Net Income-16.02M-21.89M4.33M289.35K-5.19M-269.97K
Balance Sheet
Total Assets38.62M42.15M52.60M80.03M16.52M3.90M
Cash, Cash Equivalents and Short-Term Investments588.61K479.27K1.85M915.72K31.25K152.15K
Total Debt511.31K1.45M1.42M0.005.09M0.00
Total Liabilities11.52M12.90M5.42M9.82M6.08M4.17M
Stockholders Equity27.09M29.25M47.17M70.20M10.44M-274.71K
Cash Flow
Free Cash Flow-2.89M2.68M-18.10M-42.78M-3.40M-368.17K
Operating Cash Flow376.37K5.69M-3.41M-8.86M-2.25M-368.17K
Investing Cash Flow-3.41M-7.26M-14.51M-34.72M-1.27M-2.43M
Financing Cash Flow2.76M56.11K18.86M44.47M2.25M4.10M

Digi Power X Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.52
Price Trends
50DMA
4.97
Negative
100DMA
4.61
Negative
200DMA
3.71
Positive
Market Momentum
MACD
-0.16
Negative
RSI
55.25
Neutral
STOCH
88.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DGX, the sentiment is Positive. The current price of 4.52 is above the 20-day moving average (MA) of 3.77, below the 50-day MA of 4.97, and above the 200-day MA of 3.71, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
C$3.16B220.732.88%-9.05%
65
Neutral
C$154.73M-146.14-1.32%-5.56%-124.69%
62
Neutral
C$296.53M-8.89-34.34%-23.85%35.05%
56
Neutral
C$223.69M-29.42-2.18%-4.34%31.52%
45
Neutral
C$14.56M-1.4717.18%79.56%
41
Neutral
C$2.92M-0.44-13.42%-126.00%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DGX
Digi Power X
4.19
0.98
30.53%
TSE:BB
BlackBerry
5.43
-0.35
-6.06%
TSE:STC
Sangoma Technologies
6.71
-3.94
-37.00%
TSE:MTLO
Martello Technologies Group Inc
0.01
-0.01
-50.00%
TSE:PLUR
Plurilock Security Inc
0.19
-0.21
-52.56%
TSE:HAI
Haivision Systems
6.43
1.51
30.69%

Digi Power X Corporate Events

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.

Business Operations and StrategyPrivate Placements and Financing
Digi Power X Bolsters Liquidity to Propel 2026 AI Infrastructure Expansion
Positive
Nov 3, 2025

Digi Power X has significantly strengthened its balance sheet, increasing its liquidity to $85 million, which will support its 2026 AI infrastructure development plan. The company is transitioning from cryptocurrency mining to AI-driven infrastructure, with plans to launch its retail compute platform NeoCloudz and implement the ARMS 200 platform in January 2026. This strategic shift aims to enhance Digi Power X’s market position by optimizing energy efficiency and expanding AI data center capacity, with a targeted operational capacity of 195 MW by 2027.

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.

Business Operations and StrategyFinancial Disclosures
Digi Power X to Release Q3 2025 Financial Results and Host Conference Call
Neutral
Oct 30, 2025

Digi Power X announced it will release its Q3 2025 financial results on November 13, 2025, and will provide an operational update the following day. The company will host a conference call on November 14, 2025, to discuss these results and provide further updates, reflecting its ongoing commitment to transparency and stakeholder engagement.

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.

Business Operations and StrategyExecutive/Board Changes
Digi Power X Appoints Ajay Gupta to Board, Strengthening Strategic Vision
Positive
Oct 22, 2025

Digi Power X has appointed Ajay Gupta, a seasoned wealth management executive, to its Board of Directors. Gupta’s extensive experience in wealth management and alternative investments is expected to provide strategic insights and global relationships that will support Digi Power X’s mission to lead in clean power, AI, and digital infrastructure. This appointment aligns with the company’s positioning at the intersection of AI compute growth and energy efficiency, potentially enhancing its industry standing and operational growth.

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.

Business Operations and StrategyProduct-Related Announcements
Digi Power X Expands AI Data Center Capacity and Launches NeoCloudz Platform
Positive
Oct 21, 2025

Digi Power X, a U.S. developer of high-performance computing infrastructure, is expanding its AI data center capacity with the addition of five new ARMS-200 GPU modules at its Alabama facility, enhancing its GPU-as-a-Service offerings. Additionally, the company is launching NeoCloudz, a retail compute platform providing on-demand GPU access, which will broaden its market reach and leverage its Tier III infrastructure for scalable AI and HPC capabilities. These initiatives, supported by a strong financial position, aim to strengthen Digi Power X’s market presence in AI, cloud, and blockchain workloads.

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: Feb 01, 2025