Q1 2026 Digi Power X Inc Earnings Call

May 15, 2026

Operator: Good morning, and welcome to Digi Power X Inc.'s Q1 2026 Financial Results Conference Call. Please note that this event is being recorded, and a transcript will be available on Digi Power X Inc.'s website. At this time, all participants are on a listen-only mode. A brief question-and-answer session will follow the formal presentation. Unless otherwise noted, all amounts referred to during the call are denominated in US dollars. Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable US and Canadian security laws.

Speaker #2: At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. Unless otherwise noted, all amounts referred to during the call are denominated in US dollars.

Speaker #2: Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable US and Canadian security laws. Such statements and information reflect current expectations and, as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations.

Operator: Such statements and information reflect current expectations and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. Those risks and uncertainties include, but are not limited to, factors discussed in Digi Power X Inc.'s report on Form 10-Q for the three months ended 31 March 2026, and the annual report for the year ended 31 December 2025, as well as the company's other disclosure documents. Except to the extent required by applicable law, Digi Power X undertakes no obligation to publicly update or review any forward-looking statements or information. During the call, management may make reference to certain non-GAAP financial measures that are not separately defined under GAAP, such as EBITDA and adjusted EBITDA.

Speaker #2: Those risks and uncertainties include, but are not limited to, factors discussed in DigiPower X Inc.'s report on Form 10-Q for the three months ended March 31, 2026, and the annual report for the year ended December 31, 2025, as well as the company's other disclosure documents.

Speaker #2: Except to the extent required by applicable law, DigiPower X undertakes no obligation to publicly update or review any forward-looking statements or information. During the call management may make reference to certain non-GAAP financial measures that are not separately defined under GAAP, such as EBITDA and adjusted EBITDA.

Speaker #2: Management believes that those non-GAAP measures, when considered in conjunction with GAAP financial measures, provide useful information in both management for both management and investors.

Operator: Management believes that those non-GAAP measures, when considered in conjunction with GAAP financial measures, provide useful information for both management and investors. Reconciliations between GAAP and non-GAAP measures are presented in the table accompanying the press release, highlighting Digi Power X financial results as the quarter ended 31 March 2026, have been filed and made accessible under the company's continuous disclosure profile on SEDAR+ at www.sedarplus.ca and are also available on the SEC's EDGAR website at www.sec.gov/edgar. I would now like to turn the call over to Michel Amar, CEO of Digi Power X. Thank you. Please go ahead.

Speaker #2: Reconciliations between GAAP and non-GAAP measures are presented in the table accompanying the press release highlighting DigiPower X financial results for the quarter ended March 31, 2026, and have been filed and made accessible under the company's continuous disclosure profile on CEDAR+, as well as at www.cedarplus.ca.

Speaker #2: And are also available on the SEC's Edgar website at www.sec.gov/edgar. I would now like to turn the call over to Michelle Ammar, CEO of DigiPower X.

Speaker #2: Thank you. Please go ahead. Good morning, everyone. And thank you for joining us today. Our Q1 2026 results underscore a transformational year in which the company strengthened its balance sheet commenced the ramping down of its cryptocurrency mining and positioned itself as a capital light infrastructure scale AI computing platform with a clear path to nine-figure annual revenues.

Michel Amar: Good morning, everyone, and thank you for joining us today. Our Q1 2026 results underscore a transformational year in which the company strengthened its balance sheet, commenced the ramping down of its cryptocurrency mining, and positioned itself as a capital-light infrastructure scale AI computing platform with a clear path to nine-figure annual revenues. Q1 2026 financial highlights. Three months ended March 31, 2026. +adjusted EBITDA of $1.1 million from -$1.3 million last year, Q1 2025. Revenue of $6.8 million, reflecting the planned wind down of legacy operation as the company transitions to AI compute and colocation revenues. Balance sheet and liquidity as of March 31, 2026. Cash and cash equivalents of $71.4 million. Working capital of $67.2 million compared to -$0.8 million at March 31, 2025.

Speaker #2: First quarter 2026 financial highlights. Three months ended March 31, 2026. Positive adjusted EBITDA of 1.1 million dollars from a negative 1.3 million last year Q1 2025.

Michel Amar: Three months ended March 31, 2026. Positive Adjusted EBITDA of $1.1 million from -$1.3 million last year, Q1 2025. Revenue of $6.8 million, reflecting the planned wind down of legacy operation as the company transitions to AI compute and colocation revenues. Balance sheet and liquidity as of March 31, 2026. Cash and cash equivalents of $71.4 million. Working capital of $67.2 million compared to -$0.8 million at March 31, 2025.

Speaker #2: Revenue of 6.8 million reflecting the planned wind down of legacy operation as the company transitions to AI compute and colocation revenues. Balance sheet and liquidity.

Speaker #2: As of March 31, 2026, cash and cash equivalents of 71.4 million. Working capital of 67.2 compared to negative 0.8 million at March 31, 2025.

Speaker #2: Digital asset holdings of 13.6 million up 208% year over year. Net fixed assets of 26 million up 29% year over year reflecting capitalized investment as a Colombiana Alabama facility.

Michel Amar: Digital asset holdings of $13.6 million, up 208% year-over-year. Net fixed assets of $26 million, up 29% year-over-year, reflecting capitalized investment at the Columbiana, Alabama facility. No long-term debt. Balance sheet and liquidity as of 15 May 2026. Approximately $125 million in cash and cash equivalents, about $15 million dollar in digital assets, and approximately $45 million in year-to-date CapEx deployed toward GPU equipment and data center build-out, principally at the Columbiana, Alabama facility. Operational highlights. Columbiana, Alabama AI campus. The company is targeting phase 1 ready for service December 2026 and completion Q1 2027. NeoCloudz GPU as a service. NeoCloudz, the company's GPU cloud business, will recognize its first revenue in May 2026 from its initial fleet of NVIDIA B200, B300 GPUs deployed at the company's Alabama facility. Closing message.

Speaker #2: No long-term debt. Balance sheet and liquidity as of May 15, 2026. Approximately $125 million in cash and cash equivalents. About $15 million in digital assets, and approximately $45 million in year-to-date capital expenditure deployed toward GPU equipment and data center build-out.

Speaker #2: Principally at the Colombiana Alabama facility. Operational highlights. Colombiana Alabama AI campus. The company is targeting phase one ready-for-service December of 2026 and completion Q1 2027.

Michel Amar: Operational highlights. Columbiana, Alabama AI campus. The company is targeting phase 1 ready for service December 2026 and completion Q1 2027. NeoCloudz GPU as a service. NeoCloudz, the company's GPU cloud business, will recognize its first revenue in May 2026 from its initial fleet of NVIDIA B200, B300 GPUs deployed at the company's Alabama facility. Closing message.

Speaker #2: NeoCloud Z GPU as a service. NeoCloud Z. The company's GPU cloud business will recognize its first revenue in May 2026 from its initial fleet of NVIDIA B200, B300 GPUs deployed at the company's Alabama facility.

Speaker #2: Closing message. Q1 2026 marks an inflection point for DigiPower X. Adjusted EBITDA turned positive even as we deliberately run down legacy revenue to make room for a much larger AI compute business.

Michel Amar: Q1 2026 marks an inflection point for Digihost. adjusted EBITDA turned positive even as we deliberately ramped down legacy revenue to make room for a much larger AI compute business. Our balance sheet is the strongest it has ever been. We hold approximately $125 million in cash and $15 million in digital assets as of today, with no long-term debt. We have already deployed approximately $45 million of CapEx year-to-date into GPUs and infrastructure at Columbiana. That is the firepower to execute phase one and the operational platform that follows. Thank you for joining us today. We will now take questions.

Speaker #2: Our balance sheet is the strongest it has ever been. We hold approximately $125 million in cash and $15 million in digital assets as of today.

Speaker #2: With no long-term debt. And we have already deployed approximately $45 million of CapEx year-to-date into GPUs and infrastructure at Colombiana. That is firepower to execute phase one and the operational platform that follows.

Speaker #2: Thank you for joining us today. We will now take questions. Thank you. We will now discuss some questions we had from shareholders with DigiPower X CEO Michelle Ammar.

Operator: Thank you. We will now discuss some questions we had from shareholders with Digihost CEO, Michel Amar. For Q1 2026, can you please discuss the financial results, specifically your cash and cash equivalents as of 31 March 2026?

Speaker #2: For Q1 2026, can you please discuss the financial results, specifically your cash and cash equivalents, as of March 31, 2026?

Speaker #3: Good morning, everyone. So as stated earlier, we ended up with actually 73 million dollars cash March 31, with an adjusted EBITDA of positive 1.1 million dollars compared to negative last year.

Michel Amar: Good morning, everyone. As stated earlier, we ended up with actually $73 million cash 31 March. With an adjusted EBITDA of +$1.1 million, compared to negative last year. The adjusted EBITDA is basically all the non-cash item deducted from the net loss. It reflects a disciplined capital management and provide us with enough cash to execute on our phase one Columbiana commissioning. It also allows us to leverage our balance sheet to get better debt financing for the future.

Speaker #3: And the adjusted EBITDA is basically all the non-cash item deducted from the net loss. We actually it reflects a discipline capital management. And provide us with enough cash to execute on our phase one Colombiana commissioning.

Speaker #3: It also allows us to leverage our balance sheet to get better debt financing for the future.

Speaker #2: Thank you. Do you have any debts?

Operator: Thank you. Do you have any debts?

Speaker #3: So as of today, we continue to maintain a zero debt capital structure as of March 31, 2026. As of May 15, we still maintain that zero debt we are in discussion with different lenders in order to mitigate dilution.

Michel Amar: As of today, we continue to maintain a zero debt capital structure as of 31 March 2026. As of 15 May, we still maintain that zero debt. We are in discussion with different lenders in order to mitigate dilution. With the strongest balance sheet we've ever had in the history of the company, between cash and cash equivalent of $125 million and digital assets that are unencumbered of about $15 million. We basically have $140 million cash equivalent, and digital assets that we can leverage to get a comfortable debt financing some future data center developments, so we don't tap into the equity dilution.

Speaker #3: And with the strongest balance sheet we've ever had in the history of the company, between cash and cash equivalents of $125 million and digital assets that are unencumbered of about $15 million, we basically have $140 million in cash, cash equivalents, and digital assets that we can leverage to get comfortable financing—debt financing—for some future data center developments.

Speaker #3: So we don't tap into the equity dilution.

Speaker #2: Thank you. Can you discuss the decision the company made in 2025 to strategically pivot and transition from crypto mining to AI data centers?

Operator: Thank you. Can you discuss the decision the company made in 2025 to strategically pivot and transition from crypto mining to AI data centers?

Speaker #3: So that was the greatest decision we made. The decision to transition from Bitcoin mining to AI infrastructure was the most consequential strategic decision the company's history.

Michel Amar: That was the greatest decision we made. The decision to transition from Bitcoin mining to AI infrastructure was the most consequential strategic decision in company history. In 2025, two realities had converged. First, the economics of Bitcoin mining had become increasingly compressed and cyclical, while demand for AI compute infrastructure was entering a generational growth phase driven by frontier model training and inference scaling. Most importantly, we had spent years assembling a portfolio of power-rich sites in Alabama, Niagara Falls, North Carolina, Buffalo, and they were uniquely suited to hyperscale AI workloads. It took us about 10 years to accumulate these assets that are fully owned by the company and that are very valuable today in a twofold. One, speed to market.

Speaker #3: In 2025, two realities that converge. First, the economics of Bitcoin mining at Bitcoin increasingly compressed and cyclical while domain for AI compute infrastructure was entering a generational growth phase driven by frontier model training and inference scaling.

Speaker #3: But most importantly, we had spent years assembling a portfolio of power-rich sites in Alabama, Niagara Falls, North Carolina, Buffalo, and they were uniquely suited to hyperscale AI workloads.

Speaker #3: It took us about 10 years to accumulate these assets that are fully owned by the company and that are very, very valuable today in two folds.

Speaker #3: One, speed to market. We don't need to wait for an interconnection with the utility—we own the substation. We have utility interconnections. We also generate power through our combined cycle gas power plant that we acquired in 2022.

Michel Amar: We don't need to wait for a interconnection with the utility. We own the substation. We have utility interconnections. We also generate power through our combined cycle gas power plant that we acquired in 2022. That allow us to be in a very, very strong position in terms of speed to market. That's why one of the reasons that we were able to get a major contract from a major frontier AI company and deliver in a basically record time period by the end of this year.

Speaker #3: And that allows us to be in a very, very strong position in terms of speed to market. And that's why one of the reasons that we were able to get a major contract from a major frontier AI company.

Speaker #3: And deliver in a basically record time period by the end of this year.

Operator: Thank you. How is the company positioned to capture AI infrastructure demand at scale as compared to conventional colocation and cloud competitors?

Speaker #2: Thank you. How has the company positioned to capture AI infrastructure demand at scale as compared to conventional colocation and cloud competitors?

Speaker #3: So we're not a traditional colo operator. We're not an hyperscale cloud. We believe in the structurally advantage for the current AI domain environment. Few points to underpin.

Michel Amar: We're not a traditional colo operator. We're not an hyperscale cloud. We believe in the structural advantage for the current AI demand environment. Few points to underpin. We own and control our power. We have a total footprint of power of about 393 MW over four sites. We have two stream of businesses. One is the NeoCloudz GPU as a service, which by the way, we are live as of today, which de-risk greatly our ability to execute. We are actually live and getting AI revenues as of today through a contract that we signed and announced a few weeks ago. This is our first NVIDIA B200, B300 GPU as a service offering that we intend to scale up.

Speaker #3: We own and control our power. We have a total footprint of power of about 393 megawatts over four sites. And we have two streams of businesses.

Speaker #3: One is a NeoCloud Z GPU as a service, which, by the way, we are live as of today which de-risk greatly our ability to execute.

Speaker #3: We are actually live and getting AI revenues as of today, through a contract that we signed and announced a few weeks ago. And this is our first NVIDIA B200, B300 GPU-as-a-Service.

Speaker #3: Offering that we tend to scale up. And then we have the colocation strategy, which is basically a modified lease structure where we basically sign a—we sign a 10-year deal for a billion won that ensures stability and income without the enormous capex of GPUs.

Michel Amar: Then we have the colocation strategy, which is basically a modified lease structure where we basically sign a 10-year deal for USD 1.1 billion that ensure stability and income without the enormous CapEx of GPUs. Our business model today is to develop both businesses, colocation. Because we do have the power and sizable power, and GPU as a service because we are vertical. We try to optimize every megawatt of power we own, and being vertical give us a much bigger revenue stream.

Speaker #3: So our business model today is to develop both businesses, colocation because we do have the power, and sizable power, and GPU as a service because we are vertical and the we try to optimize every megawatt of power we own and being vertical give us a much bigger revenue stream.

Operator: Thank you. How is the company planning to fund its expansion in 2026 and beyond?

Speaker #2: Thank you. How is the company planning to fund its expansion in 2026 and beyond?

Speaker #3: So we went through the painful last six months of raising capital therefore diluting the company but now that we have basically 125 million dollar cash and no debts we can leverage that balance sheet and we are able now to avoid future dilution or mitigate dilution by financing the growth of our future data centers through debt financing.

Michel Amar: We went through the painful last six months of raising capital, therefore, diluting the company. Now that we have basically $125 million of cash and no debt, we can leverage that balance sheet, we are able now to avoid future dilution or mitigate dilution by financing the growth of our future data centers through debt financing. Having a strong balance sheet helps you to get, you know, better terms in terms of financing. We are thinking about a 70 30 LTV, loan to cash. Instead of going from 100% self-financing, we're gonna go to 70% 30% loan to cash financing.

Speaker #3: And having a strong balance sheet helps you to get better terms in terms of financing we are thinking about a 70/30 LTC loan to cash so instead of going from 100% self-financing we're going to go to 70/30% loan to cash financing we already signed a term sheet with a lender in order to grow our business through smart debt financing.

Michel Amar: We already sign a term sheet with a lender, in order to grow our business through smart debt financing.

Speaker #2: Thank you. How much available capacity does the company have, in terms of power (MW), at its various sites?

Operator: Thank you. How much available capacity does the company have in terms of power MW at its various sites?

Speaker #3: So, so far today we have connected to the grid about 200 megawatts, 210 megawatts live connected to the grid that we can turn into AI revenues, and we have coming up basically another 180 megawatts where we should get back our loan study by 2028.

Michel Amar: Far today, we have connected to the grid about 200 MW, 210 MW live connected to the grid that we can turn into AI revenues. We have coming up basically another 180 MW where we should get back our load study by 2028, end of 2028. Which will give us a total of about 393 MW of secure capacity across our sites that we own. We also have a LOI that we announced a few months ago with a massive power plant in West Virginia of 1.3 GW that now we are better positioned to explore and come to terms, if possible, in order to scale up our business exponentially for 2028, 2029, 2030.

Speaker #3: End of 2028. That will give us a total of about 393 megawatts of secure capacity across our sites that we own. We also have a NLOI that we announced a few months ago with a massive power plant in West Virginia of 1.3 gigawatts that now we are better positioned to explore and come to terms if possible in order to scale up our business exponentially for 2028, 2029, 2030.

Speaker #2: Thank you. Can you discuss some of the company's key accomplishments year to date, specifically surrounding site expansion, the 24-month contract signed with SubQAI, and the current balance sheet and liquidity?

Operator: Thank you. Can you discuss some of the company's key accomplishments year to date, specifically surrounding site expansion, 24-month contract signed with SubQ AI, and current balance sheet and liquidity?

Speaker #3: So the year to date was an execution achievement. We executed a bare metal GPU rental agreement with subquadratic a new upcoming lab and we delivered in a very short period of time and on time a contract was as of May 15 RFS and we delivered on time so we believe it was a very incredible teamwork we teamed up with the NVIDIA team and Supermicro team and our team in Alabama and we delivered the our first GPU bare metal rental as of today.

Michel Amar: The year to date was an execution achievement. We executed the bare metal GPU rental agreement with Subquadratic, a new upcoming lab. We delivered in a very short period of time and on time. You know, our contract was as of 15 May RFS, we delivered on time. We believe it was a very incredible teamwork. We teamed up with, you know, the NVIDIA team and Supermicro team and our team in Alabama, we delivered our first GPU bare metal rental as of today. That was one major accomplishment. The second, we financially developed a very strong balance sheet that we can leverage for our future. We do not have any concerns of lack of cash today.

Speaker #3: So that was one major accomplishment. The second we financially developed a very strong balance sheet that we can leverage for our future and we do not have any concerns of lack of cash today we can grow third we signed a massive contract with one of the top chip makers a world top chip maker of a billion won expendable to up to two and a half billion and that give us a steady predictable revenue for the next 10 years and also a lot of credibility as now we are in discussion with many, many top players for our expansion in the next three years.

Michel Amar: We can grow. Third, we signed a massive contract with one of the top chip maker, a world top chip maker of $1.1 billion, expandable up to $2.5 billion. That give us a steady, predictable revenue for the next 10 years. Also a lot of credibility, as now we are in discussion with many top players for expansion in the next 3 years.

Speaker #2: Thank you. When does the company expect to begin generating its first AI revenues?

Operator: Thank you. When does the company expect to begin generating its first AI revenues?

Speaker #3: Today. We started today. We ended up last night the first GPU bare metal GPUs to our customer and been working very hard in the last few weeks we received the NVIDIA first week first few days of May and we tested it, commissioned it and delivered the GPUs to the customer.

Michel Amar: We started today. We ended up last night, the first GPU bare metal GPUs to our customer. You know, we've been working very hard in the last few weeks. We received the GPUs from NVIDIA, first few days of May. We tested it, commissioned it, and delivered the GPUs to the customer. We are starting our AI revenues as of today.

Speaker #3: So we are starting our AI revenues as of today.

Speaker #2: Thank you. How many MWs of total live AI infrastructure across the company's multi-site portfolio does it expect to activate in 2026 and 2027?

Operator: Thank you. How many MWs of total live AI infrastructure across the company's multi-site portfolio does it expect to activate in 2026 and 2027?

Speaker #3: So 26 we expect to expand our GPU bare metal with another few megawatts today that first contract that we delivered was a little bit under one megawatt and we expect to deliver by the end of the year an additional six megawatts and we'll get the revenues potentially last quarter of this year or early quarter next year.

Michel Amar: In 2026, we expect to expand our GPU bare metal with another few MW. Today that first contract that we delivered was a little bit under 1 MW, and we expect to deliver by the end of the year an additional 6 MW. We'll get the revenues potentially Q4 of this year or early Q next year. We're gonna deliver the first phase of this colocation contract December 2026. It's about 15 MW. We'll end up internalizing the second phase Q1 2027, which will be an additional 25 MW for a total of 40 MW, which will be a running $8, 9 million a month run rate for colocation.

Speaker #3: And we're going to deliver the first quarter the first phase of this colocation contract December 2026 it's about 15 megawatts and we'll end up and finalizing the second phase Q1, 2027 which would be an additional 25 megawatts for a total of 40 megawatts which will be a running eight, nine million dollar a month run rate.

Speaker #3: For the colocation and it's about in GPU it will be about seven, eight million dollar a month first quarter of 2027.

Michel Amar: It's about in GPU, it will be about $10.18 a month, Q1 2027.

Speaker #2: Thank you. What are the company's revenue projections for the next three years?

Operator: Thank you. What are the company's revenue projections for the next three years?

Speaker #3: So we don't have an issue with power. We do have the most one of the most important bottleneck for most of the companies to get access to power.

Michel Amar: We don't have an issue with power. We do have one of the most important bottleneck for most of the companies to get access to power. We do have access to power. Our strategy is to turn that power into AI revenues. Our goal is to, for 2027, be active with 90 MW worth of colocation and basically 10, 12 MW of GPU as a service. That would give us a total run rate of $300 million a year. In 2028, we plan to add an additional 50 MW of colocation and 20 MW of GPU bare metal. That would give us a $450 to 500 million a year run rate. In 2029, an additional 100 MW of colocation, an additional 50 MW of GPU bare metal.

Speaker #3: We do have access to power so our strategy is to turn that power into AI revenues and our goal is to for 2027 be active with 90 megawatts worth of colocation and basically 10, 12 megawatts of GPU as a service that would give us a total run rate of 300 dollar a year in 2028 we plan to add an additional 50 megawatts of colocation and 20 megawatts of GPU bare metal that would give us a 450 to 500 million dollar year run rate and in 2029 an additional 100 megawatts of colocation an additional 50 megawatts of GPU bare metal that would give us a 800 to a billion dollar run rate per year.

Michel Amar: That would give us a $800 to 1 billion dollar run rate per year. This is our goal. It can be accomplished as long as we get the financial strength and the debt financing instruments in place, which we are executing now on the financial side. Our stock is very liquid, so very attractive to the different institutions. We are getting a lot of interest in funds to partner or lenders to partner with us and support our growth. This is our plan for the next 36 months.

Speaker #3: So, this is our goal. It can be accomplished as long as we get the financial strength and the debt financing instruments in place, which we are executing now. On the financial side, our stock is very liquid, so very attractive to the different institutions. So we are getting a lot of interest in funds to partner, or lenders to partner with us and support our growth.

Speaker #3: But this is our plan for the next 36 months.

Speaker #2: Thank you. That brings us to the end of today's question and answer session. We would like to thank everyone for their participation and interest in today's conference.

Operator: Thank you. That brings us to the end of today's question and answer session. We would like to thank everyone for their participation and interest in today's conference. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.