Digi Power X Reports First Quarter 2026 Financial Results
Digi Power X Turns AI Corner as Q1 Adjusted EBITDA Swings Positive, $1.1B Cerebras Deal Anchors Revenue Pipeline
The most recent release (May 15, 2026) reports Q1 2026 financial results. Highlights include: - First revenue from NeoCloudz GPU-as-a-Service in May, using NVIDIA B200/B300 GPUs. - Signed a $1.1 billion, 10-year colocation agreement with a leading AI infrastructure company (announced separately May 5 as Cerebras Systems, 40 MW in Alabama). - Adjusted EBITDA turned positive at $1.1M (vs. -$1.3M in Q1 2025), despite a planned wind-down of legacy crypto revenue. - Revenue of $6.8M (down from $9.3M), net loss $4.7M (largely non-cash). - Cash ~$125M, digital assets ~$15M, zero long-term debt. - YTD capex of $45M primarily on Alabama GPU facility. - 2027 revenue target $250–300M, with up to $200M from colocation (90 MW) and up to $100M run-rate from NeoCloudz.
This release follows a sequence of transformative news: - March 2026: FY2025 results with $78.5M cash, zero debt, pivot to AI. - April 9: ATM program established at up to $75M; upsized to $175M on May 8. - April 20: First AI revenue contract with SubQ AI ($19.6M, 24 months). - May 5: $1.1B Cerebras colocation agreement (potential up to $2.5B with renewals).
The company has transitioned from crypto mining to an AI infrastructure operator, with major customer validation and a rapidly strengthening balance sheet.
Over the past six months, Digi Power X executed on key projections: - Liquidity growth: Forecasted $100M+ by year-end 2025 and delivered; cash/crypto rose from $8M to $125M by May 2026. - First AI revenue: Originally targeted Q1 2026, then April 2026, and was achieved with the SubQ AI contract and NeoCloudz launch. The Cerebras deal was an unanticipated mega-win that dramatically raised the revenue outlook. - ARMS 200 deployment: Achieved Tier III certification, on-site in Alabama, and now generating revenue. - Balance sheet strength: Zero debt retained; working capital solid at $67.2M.
The Q1 2026 earnings release confirms these milestones and adds positive EBITDA, but the blockbuster Cerebras deal had already been disclosed 10 days earlier. Therefore, the report is largely a formalization of known progress—no new, unexpected material information. The stock had already reacted to the Cerebras contract (price spikes in data for a different ticker are irrelevant). For Digi Power X, the news is incremental good news that validates the strategy and dispels fears of cash burn. It is Routine - Positive.
Digi Power X is an energy-efficient digital infrastructure company that pivoted from cryptocurrency mining to high-density AI data centers. Its flagship is the Columbiana, Alabama campus where it owns land and has secured 70 MW of power (55 MW available). The site hosts the proprietary ARMS 200 modular Tier III data center platform, now generating GPU-as-a-Service revenue via the NeoCloudz brand. The company also has power capacity in Upstate New York (123 MW+), North Carolina (200 MW anticipated by 2028–2029), and a LOI for 1.3 GW in West Virginia.