Digi Power X Inc. (NASDAQ: DGXX)

Digi Power X Inc. is an innovative energy infrastructure company that develops cutting-edge data centers to drive the expansion of sustainable energy assets. The Corporation taps into and enhances the energy grid through multiple sites, including state-of-the-art combined cycle systems and high-capacity substations. Its mission is to create efficient, reliable, and cost-effective energy solutions by maximizing the potential of its power facilities and building advanced infrastructure to meet the demands of high-performance computing, bitcoin mining, and other energy-intensive industries. Digi Power X focuses on developing, owning, and operating data center facilities and delivering enterprise colocation and AI/GPU infrastructure services. It also owns a 60 MW gas-fired power plant in North Tonawanda that operates as a peaker plant providing electrical power to the grid during times of peak demand.

The Corporation generates revenue primarily through digital currency mining activities, delivering enterprise colocation services, and providing AI/GPU infrastructure services via its NeoCloudz™ GPU-as-a-Service platform. It receives digital currencies from mining operations, where specialized computers compete to solve blocks on the blockchain and are awarded newly generated coins as compensation. The Corporation participates in mining pools that pay bitcoin rewards utilizing a Full-Pay-Per-Share payout based on hashrate contributed to the pool. In addition to mining, the Corporation generates revenue from enterprise colocation agreements and GPU-as-a-Service offerings to support high-performance computing and AI workloads. As of December 31, 2025, the Corporation had approximately 9,700 active miners under colocation agreements and nil self-mining operations, indicating a full transition to hosting third-party mining equipment. The Corporation’s operating and maintenance expenses are principally composed of electricity to power computing equipment, cooling, lighting, leasing costs, internet access, equipment maintenance, software optimization, and facility security, maintenance, and management. Natural gas represents the largest operating cost associated with electricity generation at its power plant.

The company operates through the following segments: digital currency mining operations, enterprise colocation services, and AI/GPU infrastructure services.

• The digital currency mining operations segment involves the use of specialized computing equipment to validate blockchain transactions and earn digital currency rewards. This segment requires significant electrical power, which represents the Corporation’s largest operating expense. The Corporation transitioned completely to mining pool participation in 2022 and utilizes this model to smooth the receipt of rewards based on hashrate contributed. All key components of mining facilities are monitored remotely and by on-site staff, with repair inventory maintained at each facility. The Corporation holds digital currency assets in Gemini exchange accounts and cold storage solutions for security.

• The enterprise colocation services segment provides physical space, power, cooling, and network connectivity for third-party mining equipment and computing hardware. As of December 31, 2025, the Corporation supported approximately 9,700 active miners under colocation agreements across its facilities. This segment generates revenue through recurring service fees for hosting and maintaining client-owned equipment in secure, monitored environments with remote and on-site technical support.

• The AI/GPU infrastructure services segment delivers high-performance computing access through the NeoCloudz™ GPU-as-a-Service platform and enterprise colocation for AI workloads. This segment is anchored by the proprietary ARMS (AI-Ready Modular Solution) 200 platform, a Tier 3 modular data center design with dual-path power redundancy, scalability starting at 1 MW, and support for next-generation AI GPUs and liquid cooling. The Corporation is in advanced negotiations with customers for 2026 for AI data center colocation and GPU-as-a-Service offerings, with deployment of ARMS 200 expected to begin in the second quarter of 2026 at its Alabama facility.

Digi Power X Inc. operates in a highly competitive digital currency mining industry, facing competition from companies such as Riot Platforms Inc., MARA Holdings Inc., Bitfarms Ltd., Argo Blockchain Plc, Hut 8 Corp., HIVE Digital Technologies Ltd., and Cipher Digital Inc. As it expands into large-scale data centers supporting high-performance computing and AI workloads, it also competes with established data-center operators and infrastructure providers including Equinix Inc., Digital Realty Trust Inc., and CoreWeave Inc. The Corporation competes for access to suitable land and power, engineering talent, and customers seeking scalable, energy-efficient data-center capacity. Its competitive advantages include vertical integration of energy production and data center infrastructure, a growing portfolio of secured power across multiple U. S. regions, and its focus on environmentally conscious development through initiatives like the Digigreen program and participation in the Crypto Climate Accord.

The Corporation serves organizations in the digital currency space, enterprise clients seeking colocation services for mining and computing hardware, and customers requiring high-performance computing and AI infrastructure. Its customer base includes third-party miners who host equipment at its facilities under colocation agreements, enterprises accessing GPU-as-a-Service via the NeoCloudz™ platform, and organizations contracting for AI data center colocation. As of the date of the Annual Report, all of the Corporation’s cryptocurrency assets are held in its Gemini wallets, indicating Gemini serves as a principal counterparty for digital asset custody and exchange.