{
  "@context": "https://frontierpicks.com/schemas/dossier.v1.json",
  "ticker": "DGXX",
  "name": "Digi Power X Inc. Subordinate Voting Shares",
  "url": "https://frontierpicks.com/dossiers/DGXX/",
  "json_url": "https://frontierpicks.com/dossiers/DGXX.json",
  "status": "DORMANT",
  "current_conviction": "LOW",
  "archetype": {
    "code": "a4",
    "n": 4
  },
  "current_thesis": "Digi Power X's shift from bitcoin mining to AI data center hosting is still more likely to lag the S&P 500 over three months: tenant access to Alabama Phase 1 on 15 December 2026 and the $200 million debt closing in the fourth quarter settle it.",
  "invalidation_trigger": "A daily close above $3.20, over the 50-day average of closes, which would show the shares leading the S&P 500 again. Cerebras taking access to Alabama Phase 1 on 2026-12-15 with the $200 million debt closed would also show it.",
  "catalyst_date": "2026-12-15",
  "portfolio": null,
  "pick": null,
  "themes": [
    "ai-datacenter-infrastructure",
    "gpu-cloud-neoclouds",
    "bitcoin-miners"
  ],
  "tags": [],
  "sources": [],
  "caveats": [
    {
      "claim": "Third-quarter net income of $1.0 million was materially supported by digital currency and warrant valuation gains, per the company; operating results excluding them were a gross loss.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-11-13"
    }
  ],
  "source_links": [
    {
      "title": "Digi Power X Inc. - Form 8-K - FY2026",
      "url": "https://www.sec.gov/Archives/edgar/data/0001854368/000121390026119211/ea031212101ex99-1.htm",
      "date": null
    },
    {
      "title": "Digi Power X Q3 Earnings Call Highlights",
      "url": "https://www.marketbeat.com/instant-alerts/transcript-digi-power-x-q3-earnings-call-highlights-2026-11-13/",
      "date": "2026-11-13"
    },
    {
      "title": "Digi Power X reports US$5.66M in quarterly AI revenue",
      "url": "https://mugglehead.com/digi-power-x-third-quarter-ai-revenue-columbiana-financing/",
      "date": null
    },
    {
      "title": "Finviz",
      "url": "https://finviz.com/news/401609/digi-power-x-announces-200-million-debt-financing-commitment-to-support-completion-of-alabama-ai-data-center-and-provides-expansion-update",
      "date": null
    }
  ],
  "evidence": [
    {
      "claim": "Third-quarter 2026 revenue was $12.25 million, up 85% from the second quarter; AI revenue was $5.66 million (46.2% of the total), made up of $3.20 million Tier III colocation and $2.46 million GPU rental.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-09-30"
    },
    {
      "claim": "Net income was $1.0 million, which the company said was materially supported by a $7.1 million digital currency revaluation gain and a $1.5 million warrant fair value gain; GAAP gross loss was $2.41 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $0.6 million.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-09-30"
    },
    {
      "claim": "Cash, cash equivalents and digital currencies were $119.6 million, including $24.5 million of digital currency; borrowings were nil and working capital was $103.0 million.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-09-30"
    },
    {
      "claim": "Cerebras is expected to access the 15 megawatt Phase 1 on 2026-12-15, with billing from January 2027; Phase 1 fees average about $40 million a year (about $402 million over ten years). Phase 2 (25 megawatts) is targeted for March 2027 and remains conditional.",
      "source": "Company results release and earnings call, 2026-11-13",
      "as_of": "2026-11-13"
    },
    {
      "claim": "The $200 million project-level debt commitment, received 2026-10-13, is expected to close in the fourth quarter of 2026; the company says there is no assurance it closes on the anticipated terms or at all.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-11-13"
    },
    {
      "claim": "Planned 2027 capital spending is about $350 million, mainly for about 10 megawatts of AI inference capacity and Phase 2; the company targets a $250–300 million annualized revenue run-rate by the end of the third quarter of 2027, subject to adequate financing.",
      "source": "Company results release, 8-K filed 2026-11-13",
      "as_of": "2026-11-13"
    },
    {
      "claim": "Over the four quarters to 2026-09-30, operating cash flow was −$6.0 million, capital spending $160 million and free cash flow −$166 million; the diluted share count rose 128.9% from a year earlier.",
      "source": "Form 10-Q for the third quarter of 2026, filed 2026-11-13",
      "as_of": "2026-09-30"
    },
    {
      "claim": "Chief Executive Officer Michel Amar bought 20,000 shares at $2.76 on 2026-10-14 in an open-market purchase.",
      "source": "SEC Form 4 filed 2026-10-15",
      "as_of": "2026-10-14"
    }
  ],
  "view_changes": [],
  "frame": {
    "as_of": "2026-11-15",
    "business": "Digi Power X hosts AI computing for tenants, rents GPUs, sells energy and hosts bitcoin miners, earning colocation fees, rentals and power sales. Revenue was $12.25 million in the quarter to 2026-09-30, per its results release.",
    "change": {
      "now": "On 2026-11-13 the company reported third-quarter revenue of $12.25 million, up 85% from the second quarter, and said Cerebras gets access to Alabama Phase 1 on 2026-12-15.",
      "next": "Billing starts in January 2027. About $350 million of 2027 capital spending is planned against $119.6 million of cash, equivalents and digital currencies, so it leans on the $200 million debt and tenant prepayments.",
      "linked": "Cerebras is the counterparty to the 10-year take-or-pay contract of about $1.07 billion across both phases. Goldman Sachs (GS) syndicates the $200 million project loan."
    },
    "priced_in": "At the 2026-11-13 close (filed inputs to 2026-11-13) the shares trade at 4.0 times sales and 0.8 times book value, for an enterprise value of $136 million with no debt reported; free-cash-flow yield is −71.7%. That holds only if Alabama billing starts in January 2027 and gross margin turns positive.",
    "links": {
      "customers": [],
      "suppliers": [],
      "competitors": []
    }
  },
  "filed_numbers": {
    "as_of": "2026-11-13",
    "sector": "Financial Services",
    "financials": {
      "status": "ok",
      "reason": null,
      "close_date": "2026-11-13",
      "latest_quarter": "2026-09-30",
      "figures": {
        "revenue": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-13",
              "restated": null,
              "value_musd": 12.2,
              "yoy_pct": 50.3
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-14",
              "restated": null,
              "value_musd": 6.6,
              "yoy_pct": -18.3
            },
            {
              "end": "2026-03-31",
              "filed": "2026-05-15",
              "restated": null,
              "value_musd": 6.8,
              "yoy_pct": -26.8
            },
            {
              "end": "2025-12-31",
              "filed": "2026-11-13",
              "restated": null,
              "value_musd": 8.7,
              "yoy_pct": null
            },
            {
              "end": "2025-09-30",
              "filed": "2026-11-13",
              "restated": null,
              "value_musd": 8.1,
              "yoy_pct": null
            },
            {
              "end": "2025-06-30",
              "filed": "2026-08-14",
              "restated": null,
              "value_musd": 8.1,
              "yoy_pct": null
            }
          ]
        },
        "gross_margin": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-13",
              "restated": null,
              "pct": -19.7
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-14",
              "restated": null,
              "pct": -83.3
            },
            {
              "end": "2026-03-31",
              "filed": "2026-05-15",
              "restated": null,
              "pct": -11.8
            },
            {
              "end": "2025-12-31",
              "filed": "2026-11-13",
              "restated": null,
              "pct": -8.7
            },
            {
              "end": "2025-09-30",
              "filed": "2026-11-13",
              "restated": null,
              "pct": -10.5
            },
            {
              "end": "2025-06-30",
              "filed": "2026-08-14",
              "restated": null,
              "pct": -1.1
            }
          ]
        },
        "operating_margin": {
          "status": "not available"
        },
        "pretax_income": {
          "status": "not reported"
        },
        "net_income": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "four_quarters_end": "2026-09-30",
          "value_musd": 1,
          "four_quarters_musd": -35.1
        },
        "operating_cash_flow": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "first_end": "2025-12-31",
          "value_musd": -6
        },
        "capital_spending": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "first_end": "2025-12-31",
          "value_musd": 159.8
        },
        "free_cash_flow": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "first_end": "2025-12-31",
          "value_musd": -165.8
        },
        "diluted_share_change": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "base_end": "2025-09-30",
          "pct": 128.9
        },
        "cash": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "value_musd": 95.2
        },
        "debt": {
          "status": "none reported"
        },
        "net_cash": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "value_musd": 95.2,
          "note": "no debt reported"
        },
        "deferred_revenue": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "value_musd": 13.4,
          "yoy_pct": null
        },
        "backlog": {
          "status": "not reported"
        },
        "receivables": {
          "status": "ok",
          "end": "2025-12-31",
          "filed": "2026-03-31",
          "value_musd": 1.1
        },
        "inventory": {
          "status": "not reported"
        },
        "equity": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-13",
          "value_musd": 279.9,
          "label": "including non-controlling interests"
        },
        "market_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-12",
          "basis_filed": "2026-11-13",
          "value_musd": 231.2
        },
        "enterprise_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-12",
          "basis_filed": "2026-11-13",
          "value_musd": 136,
          "note": "no debt reported"
        },
        "ev_sales": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-12",
          "basis_filed": "2026-11-13",
          "multiple": 4,
          "note": "no debt reported"
        },
        "ev_ebit": {
          "status": "not available"
        },
        "pe": {
          "status": "not meaningful"
        },
        "pb": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-12",
          "basis_filed": "2026-11-13",
          "multiple": 0.8
        },
        "fcf_yield": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-12",
          "basis_filed": "2026-11-13",
          "pct": -71.7
        }
      }
    },
    "short_interest": {
      "status": "ok",
      "settlement": "2026-10-15",
      "published": "2026-10-26",
      "short_pct_of_outstanding": 5.07,
      "days_to_cover": 1.9,
      "change_pct": -16.7
    },
    "insiders": {
      "status": "ok",
      "as_of": "2026-11-15",
      "windows": [
        {
          "days": 90,
          "status": "ok",
          "from": "2026-08-18",
          "bought_usd": 165856,
          "sold_usd": 0,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        },
        {
          "days": 365,
          "status": "ok",
          "from": "2025-11-16",
          "bought_usd": 165856,
          "sold_usd": 383057,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        }
      ]
    }
  },
  "body_markdown": "## Current Thesis\n\nDigi Power X's shift from bitcoin mining to artificial-intelligence (AI) data center hosting is still more likely to lag the S&P 500 than lead it over the next three months. Tenant access to Alabama Phase 1 on 2026-12-15 and the close of the $200 million project debt, which the company expects in the fourth quarter of 2026, settle it.\n\nThe third-quarter report of 2026-11-13 showed real growth. Revenue was $12.25 million, up 85% from the second quarter, and AI revenue was $5.66 million, or 46.2% of the total, per the company's release. The shares closed at $2.28 on 2026-11-13, up from $2.21 on 2026-11-12, and are down 41.2% over three months from $3.88 on 2026-08-17.\n\nQuality of earnings and funding carry the rest of the case. Net income of $1.0 million was materially supported by a $7.1 million digital currency revaluation gain and a $1.5 million warrant gain, while GAAP gross loss was $2.41 million. A Benzinga headline of 2026-11-13 put third-quarter sales below the $14.638 million analyst estimate.\n\n## Bull Case\n- **Revenue is turning toward AI.** Third-quarter 2026 revenue of $12.25 million compares with about $6.6 million in the second quarter. AI revenue of $5.66 million was made up of $3.20 million Tier III colocation and $2.46 million GPU rental, per the 2026-11-13 release.\n- **A dated delivery path exists.** The company said on 2026-11-13 that Cerebras gets access to the 15 megawatt Phase 1 on 2026-12-15, with billing from January 2027. Phase 1 fees average about $40 million a year over a ten-year take-or-pay term.\n- **Long-range contract value is large.** The company puts the two-phase Cerebras contract at about $1.07 billion, with an extension option it says could lift the total to about $2.5 billion. Phase 2 adds about $58.5 million a year and stays conditional.\n- **Insiders bought in the open market.** SEC Form 4 filings show Chief Executive Officer Michel Amar bought 20,000 shares at $2.76 on 2026-10-14 and 20,000 shares at $3.60 on 2026-08-19. President Alec Amar bought 10,000 shares at $3.86 on 2026-08-20.\n- **The balance sheet carries no debt.** At 2026-09-30 cash and short-term investments were $95 million, with $24.5 million more in digital currency, and no debt was reported. Equity of $280 million works out to $2.76 a share against a $2.28 close on 2026-11-13.\n\n## Bear Case\n- **The financing is not closed.** The $200 million commitment of 2026-10-13 is still subject to definitive documentation and lender diligence, and the company says there is no assurance it closes on the anticipated terms or at all.\n- **Capital needs outrun cash.** The company plans about $350 million of capital spending in 2027 against $119.6 million of cash, equivalents and digital currencies at 2026-09-30. Free cash flow was −$166 million over the four quarters to 2026-09-30.\n- **Profit rests on gains.** Third-quarter net income of $1.0 million followed a $7.1 million digital currency gain and a $1.5 million warrant gain. Filed gross margin was −19.7% in the quarter, after −83.3% in the quarter to 2026-06-30.\n- **Dilution has already been heavy.** The diluted share count rose 128.9% from a year earlier in the quarter to 2026-09-30, per the 10-Q filed 2026-11-13.\n- **Phase 2 and the run-rate target are conditional.** The company's target of a $250–300 million annualized revenue run-rate by the end of the third quarter of 2027 is subject to adequate financing, and about $143 million of it rests on current operations and the Cerebras contract.\n\n## Setup & Price Structure\n\nThe last close was $2.28 on 2026-11-13. Recent closes were $2.21 on 2026-11-12, $2.28 on 2026-11-11, $2.16 on 2026-11-10, $2.24 on 2026-11-09 and $2.08 on 2026-11-06.\n\nThe shares trade below the 50-day average of closes ($3.14) and the 200-day average ($3.91) as of 2026-11-13. The 52-week closing low of $1.89 on 2026-03-30 sits 17% below the last close. The 52-week intraday high of $9.20 on 2026-05-13 sits well above, and the last close is 75.2% below it.\n\nAt the 2026-11-13 close the market value was $231 million against book equity of $280 million, a price-to-book ratio of 0.8. Jones Trading's Buy rating and $8.00 target, set when it initiated coverage on 2026-09-28, sit far above the share price.\n\n## Catalyst Calendar\n\n- **2026-12-15:** Cerebras takes access to Alabama Phase 1 (15 megawatts); power and liquid-cooling commissioning starts. Delivery on this date starts the path to billing in January 2027 under the roughly $1.07 billion contract; a slip into 2027 breaks the timing case.\n- **2026-12-31 (est.):** Expected close of the $200 million project debt financing (company guides to the fourth quarter of 2026). Closing would fund the Alabama build and Phase 2 without large new share sales; failure would revive dilution concerns.\n- **2027-01-31 (est.):** First billing to Cerebras for Phase 1. Shows the first revenue from the colocation contract that the 2027 run-rate target relies on.\n- **2027-03-31 (est.):** Phase 2 (25 megawatts) tenant access target. Adds about $58.5 million a year to the contract if delivered; the company calls it conditional on adequate financing.\n\n## What Would Change Our Mind\n\nA daily close above $3.20, over the 50-day average of closes, which would show the shares leading the S&P 500 again. Cerebras taking access to Alabama Phase 1 on 2026-12-15 with the $200 million debt closed would also show it.\n\n## Correlation Notes\nThe shares trade with other bitcoin-mining companies that are converting power capacity into AI hosting, and with GPU-rental and data center names. They respond to AI capital-spending sentiment. Bitcoin prices still matter through the digital currency revaluation gains and the legacy bitcoin colocation line, which contributed $3.11 million of third-quarter revenue. Small-cap financing conditions matter because the Alabama build and 2027 expansion rely on debt and, if needed, equity.",
  "first_seen": "2026-11-10",
  "last_analyzed": "2026-11-15T12:36:22+00:00",
  "last_synthesized": "2026-11-15",
  "date_modified": "2026-11-15",
  "license": "Content © FrontierPicks. Cite the canonical URL."
}