Digi Power X Transitions to AI Infrastructure, Anticipates $15 Million Revenue by 2026
Digi Power X provided a comprehensive update on its financial position and the execution of its AI infrastructure strategy. Digi Power X continues to make significant strides in its transition from Bitcoin ("BTC") mining to AI infrastructure, targeting the rapidly growing Tier 3 data center market. The Company ceased its BTC mining operations during 2025 at its Alabama facility to transform it into a Tier 3 AI infrastructure hub, and is currently evaluating its existing facilities in New York for conversion of its existing power infrastructure assets into fully functional data centers. The Company has finalized production of its first ARMS 200 modular data center system at its Alabama site and expects to have it commissioned to provide live operations and customer workload GPUs by the third week of March 2026. Digi Power X anticipates full commissioning of the entire ARMS 200 system with the ability to generate GPU-as-a-Service rental AI income by the beginning of April 2026, with 10 megawatts ("MW") of pods to be operational at its Alabama facility by Q3 2026. The Company expects to begin generating its first AI-derived revenue in April 2026 through its GPU-as-a-Service platform. Based on current market pricing for server rentals and assuming near-capacity utilization rates, Digi Power X anticipates that revenues of approximately $15 million per MW deployed can be generated. With 10 MW of capacity targeted for deployment by Q3 2026, the Company believes it will be well-positioned for a significant and scalable revenue base as additional capacity comes online across its Alabama and New York sites. In addition, the production of five additional ARMS 200 units has been completed for deployment at the Company's North Tonawanda, New York location and will be commissioned at the site, anticipated by the end of Q2 2026.
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- Graduation Announcement: DIGI POWER X graduates are set to become part of the Canadian workforce, marking a significant milestone in their educational journey.
- Program Impact: The program aims to equip graduates with essential skills and knowledge to thrive in the energy sector, contributing to Canada's growing demand for skilled professionals.
- Future Opportunities: Graduates are expected to explore various career paths within the energy industry, enhancing their prospects in a competitive job market.
- Community Engagement: The graduation event highlights the importance of community support and collaboration in fostering educational initiatives and workforce development.

- Acquisition Agreement: Digi Power X has entered into a definitive agreement to acquire approximately $20 million worth of next-generation NVIDIA B300 GPUs from Super Micro Computer, with deployment targeted for March 2026 in its Tier III AI data center.
- Market Positioning: The platform aims to provide on-demand high-performance GPU computing services through NeoCloudz to enterprises, AI startups, and research institutions, significantly lowering capital investment requirements for customers and addressing the growing demand for high-performance computing.
- Return on Investment Outlook: Digi Power X anticipates achieving a positive return on invested capital within about 30 months post-deployment, contingent on customer adoption rates, market conditions, and pricing strategies, reflecting the company's confidence in future market dynamics.
- Customer Onboarding Plan: The company plans to begin onboarding initial customers in the first half of 2026 following the completion of infrastructure deployment, further enhancing its market presence in the AI computing sector.
- Settlement Agreement: Digi Power X has entered into a settlement agreement with H.C. Wainwright & Co., agreeing to pay a cash fee of $840,000 and issue 269,231 warrants, demonstrating the company's proactive approach to resolving financing disputes and aiming to maintain strong investor relations.
- Financing Context: This settlement is related to the registered direct financing completed on July 23, 2025, indicating the company's active engagement in capital markets and its focus on future financing strategies, which may influence subsequent funding efforts.
- Shareholder Rights Protection: The warrants have an exercise price of $2.85 per share and a five-year term, providing investors with potential upside while possibly impacting the company's equity structure.
- Market Reaction Expectations: The settlement is expected to alleviate market concerns regarding the company's financial stability, although it may exert slight pressure on the stock price in the short term, it is likely to enhance investor confidence in the long run.

- Strategic Transformation: In 2025, Digi Power X successfully pivoted to a power-backed AI infrastructure, enhancing its competitive position in the rapidly growing AI computing market.
- ARMS 200 Deployment: The company expects to begin deploying the ARMS 200 modular data center in Q1 2026, marking a transition from development to revenue-generating infrastructure, which is anticipated to significantly boost revenue.
- Power Asset Expansion: Digi Power X secured 123 MW of power supply in 2025, enhancing scalability across multiple U.S. regions and laying a strong foundation for future AI data center growth.
- Leadership Team Strengthening: The appointment of Jagan Jeyapaul as CTO will drive the operational deployment of ARMS 200 and the technical architecture of the NeoCloudz™️ platform, further enhancing the company's technical capabilities and market competitiveness.
New Appointment: Digi Power X Inc. has appointed Jagan Jeyapaul as its Chief Technology Officer to lead the company's technology initiatives.
Technology Oversight: Jeyapaul will oversee the ARMS 200 Tier-3 modular data-center platform, AI infrastructure deployments, and the NeoCloudz GPU-as-a-service platform.
Software Development: He will also direct the development of customer integration software, focusing on seamless onboarding and API enablement.
Future Plans: Digi Power X is preparing to begin AI data processing in 2026 under Jeyapaul's leadership.






