Digi Power X (NASDAQ:DGXX) reported second-quarter revenue of $6.6 million as it continued shifting from legacy operations toward artificial intelligence computing, colocation and GPU rental services. The company also recorded its first revenue from GPU bare-metal rentals and reported positive adjusted EBITDA, while posting a net loss of $14.4 million for the quarter.
Chief Executive Officer Michel Amar said the quarter marked a transition point for the company, with $1.1 million of GPU revenue generated from an initial fleet of B200 and B300 GPUs deployed at its Columbiana, Alabama facility. The fleet began operating during the third week of May, contributing roughly five weeks of revenue through the end of June, according to Amar.
Balance Sheet Expands Amid Alabama Build-Out
As of June 30, Digi Power X reported cash and cash equivalents of $142.4 million, compared with $1.7 million a year earlier. Working capital totaled $131 million, an increase of approximately $130 million year over year.
The company reported $14.3 million in digital-asset holdings and $127.5 million in net fixed assets and equipment deposits, reflecting investment in the Columbiana data center project. Total assets reached $279 million, compared with $37 million a year earlier, and the company reported no long-term debt.
Amar said the company had deployed about $110 million in capital expenditures year to date for GPU equipment and the Alabama data-center build-out connected with its contract with Cerebras Systems. He said cash and cash equivalents stood at approximately $115 million “as of today,” though he later described the company as having approximately $150 million in cash.
Alabama Phases Target December and March Completion
Digi Power X continues to target December 2026 for the first phase of its Columbiana AI campus and the end of the first quarter of 2027 for the second phase. Amar said the company has completed purchases of long-lead equipment for the initial 50 megawatts and has started receiving equipment earlier than scheduled.
For the second phase, which is expected to deliver an additional 25 megawatts, Amar said the company has secured long-lead equipment scheduled to arrive in November and December. He said management believes it is positioned to complete the phase by March 2027.
The company anticipates third-quarter revenue will increase by more than 100% compared with the second quarter, driven by GPU-as-a-service and bare-metal rental operations, energy sales and legacy colocation operations.
Financing Focus Shifts Toward Debt
Amar said Digi Power X is in advanced discussions regarding debt financing for the Alabama data center, with the stated objective of supporting growth while limiting shareholder dilution. He said the company had previously used its at-the-market equity program to build its cash position and become eligible for debt financing.
According to Amar, the company engaged Goldman Sachs to pursue financing and expects debt funding could both support the project and return cash to the company after its capital expenditures. He said the company had not drawn funds through the ATM program below approximately $7.25 to $7.50 per share, based on his recollection.
“Now we accumulated enough cash to, A, self-fund most of the data center of Alabama, so we are not at risk of execution from a financial perspective,” Amar said.
Additional Sites and GPU Expansion Plans
Amar said Digi Power X’s New York operations in North Tonawanda and Buffalo are grandfathered under the state’s data-center moratorium rules because the sites have operated since 2016 and 2021, respectively. While the company cannot expand its existing power footprint, he said it has sufficient existing capacity to pursue a 40- to 50-megawatt colocation arrangement and 8 to 10 megawatts of GPU-as-a-service or bare-metal operations by 2027.
The company has also ordered Vera Rubin GPUs, which Amar said are expected to arrive early in the first quarter of 2027. He said GPU equipment remains capital-intensive, but management expects growing availability of asset-based financing to support its GPU rental program.
In North Carolina, Digi Power X owns about 40 acres across two parcels and is working with Duke Energy and zoning authorities on studies and permits for a potential major data center. Amar said the site could support 150 to 200 megawatts of power beginning around 2029 or 2030.
Separately, Amar said the company is pursuing a potential development path at the Pleasants Power Station in West Virginia, where an affiliated entity signed a letter of intent. He said Digi Power X’s interest is in securing land, electrical infrastructure and access to utility power, potentially beginning with 100 megawatts and growing toward 1.3 gigawatts. He characterized the opportunity as a longer-term initiative for the 2027-to-2030 period.
Amar also said Digi Power X is building a Silicon Valley team, including engineers focused on software for GPU-as-a-service offerings, as the company seeks to expand across additional layers of the AI computing business.
About Digi Power X (NASDAQ:DGXX)
Digihost Technology Inc operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.
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