Digi Power X Inc. Reports Revenue Decline and Increased Losses in Q1 2026

Digi Power X Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue of $6.79 million, down from $9.28 million in the same period last year. The decrease was primarily driven by a sharp drop in revenue from digital currency mining, which fell to $47,727 from $765,876 year-over-year. Colocation services also saw a decline, generating $3.03 million compared to $5.08 million in the prior year. However, revenue from energy sales increased slightly to $3.72 million from $3.43 million, reflecting the company's strategic shift towards energy sales as it transitions from cryptocurrency mining to AI infrastructure.

The company's net loss for the quarter was $4.65 million, a substantial increase from a loss of $1.63 million in the first quarter of 2025. This increase in losses was attributed to higher operating expenses, which rose to $5.14 million from $2.89 million, largely due to increased general and administrative costs and a significant loss on the revaluation of digital currencies amounting to $3.76 million. The company also reported a foreign exchange gain of $2.96 million, contrasting with a loss in the previous year, which partially offset the overall loss.

Digi Power X has been actively pursuing strategic developments, including the establishment of a new subsidiary focused on high-performance computing and AI data centers. The company is in the process of developing a Tier III AI data center in Columbiana, Alabama, which is expected to enhance its operational capabilities. Additionally, the company entered into a significant Data Center Colocation and Master Services Agreement with Cerebras Systems Inc., potentially worth up to $2.5 billion over the contract's lifetime, contingent on meeting specific obligations.

Operationally, the company has made notable changes, including a shift in focus from cryptocurrency mining to AI-driven infrastructure. As of March 31, 2026, Digi Power X held approximately 166 Bitcoins valued at $11.43 million and 1,013 Ethereum valued at $2.13 million. The company did not mine any Bitcoins during the quarter, a stark contrast to the nine Bitcoins mined in the same period last year, reflecting its strategic pivot. The total assets of the company decreased to $126.93 million from $134.11 million at the end of 2025, while total liabilities also decreased to $8.00 million from $10.85 million.

Looking ahead, Digi Power X aims to continue its transition towards AI infrastructure, with plans to expand its data center capacity significantly. The company has outlined a phased deployment plan for its power assets, targeting a total of 55 MW by the end of 2026. The management remains optimistic about the future, emphasizing the importance of executing its Tier III initiatives and securing additional financing to support its growth strategy. The company is also exploring opportunities to raise funds through equity financing, as it anticipates the need for further capital to support its ongoing transition and expansion efforts.