NASDAQ / Last 4 quarters

DGXX earnings call analysis

DGXX. AI-assisted transcript summaries focused on management tone, evasions, goalpost moving, catalysts, risks, and data-center exposure.

4 storedAug 18, 2026

NASDAQ / FY2026 Q2 / ON-DEMAND

Research summary and source transcript

readyAug 18, 2026

AI summaryFull transcript

Research Summary

DGXX's FY2026 Q2 call is best read as a thesis-quality check, not a transcript recap. The upside case is that AI and compute-heavy infrastructure demand are becoming real drivers of customer activity. The key investor question is whether that activity converts into durable revenue, royalties, margins, and cash flow rather than remaining a strong-sounding demand story.

Framework #1 / Information Gradient

Framework #1 asks what management may know now that the market may not fully recognize for 6-24 months. For DGXX, the possible information gradient is whether current demand, backlog, customer activity, or AI/data-center engagement is an early signal of durable conversion rather than a one-quarter narrative. The transcript still needs follow-through in future quarters before that can be treated as proven.

Layer 1 / Business Engine

The business engine appears to be demand conversion into revenue at acceptable incremental margins; the fallback needs management's KPIs and historical conversion data to grade it more precisely.

Layer 2 / Management Topics

Management centered the story on AI, compute, or data-center demand, which is the key thesis variable to verify in future quarters.
Backlog and demand visibility were important to the quarter's credibility.
Margin quality remains a follow-up topic because the transcript does not resolve it.
Customer breadth is not yet well proven from the transcript.

Layer 3 / Management Excitement

Management's strongest emphasis appears to be around demand momentum and AI/compute-related opportunity; the useful investor question is whether that enthusiasm is backed by conversion and customer economics.

Layer 4 / Avoidance

The tone reads constructive but still needs investor skepticism. Management appears to have enough operating evidence to discuss momentum, but the call only becomes high-quality if the numbers support conversion, margins, cash flow, and customer breadth. Local fallback reason: model analysis failed during on-demand transcript rendering: Earnings call analyzer failed with status 403..

No clear dodged analyst question was detected by the local fallback; manual review should still check whether Q&A answers quantified conversion, margins, and guidance.

Goalpost Moving

There may be a benchmark or metric-framing issue worth manual review, especially around adjusted metrics, timelines, or changed expectations.

Layer 5 / Competitive Position

Competitive position looks potentially improving, but not proven. Customer activity and AI/compute exposure suggest the company may be in the right demand pools; the missing proof is market-share data, pricing power, win/loss detail, and retention economics.

Key Figures

Key figure to verify: Revenues of 6.6 million, reflecting the planned wind down of legacy operation as the company transitioned to AI, compute and colocation revenue.
Key figure to verify: GPU revenue recognized for $1.1 million, representing the company's first GPU bare metal rental initial fleet of B200 and B300 GPUs deployed at the Columbiana, Alabama facility.
Key figure to verify: Positive adjusted EBITDA of $3.3 million, an increase of $3.2 million compared to last year, Q2 2025.
Key figure to verify: If you add all the depreciation and the non-cash related items, it brings us to a net loss of $14.4 million for the quarter.
Key figure to verify: Cash and cash equivalents of $142.4 million versus last year, $1.7 million.

Key Catalysts

The quarter appears to be moving from story to evidence: operating momentum is showing up in revenue, royalties, or backlog rather than only in management narrative.
The customer proof is incomplete; investors should look for named wins, renewal detail, and cohort-level expansion before underwriting durability.
AI and data-center exposure look strategically relevant rather than cosmetic, because management ties demand to compute-heavy end markets instead of treating it as a generic buzzword.
The transcript gives limited margin evidence, so the quality of revenue still needs corroboration from gross margin, operating leverage, and cash conversion.

Risk Flags / Open Questions

The main open question is conversion: AI or data-center engagement has to turn into recurring royalties, cash flow, and repeatable design wins before it deserves full credit in valuation.
Backlog lowers some demand uncertainty, but investors still need timing, cancellation risk, concentration, and conversion economics before treating it as de-risked revenue.
Margin durability remains under-evidenced, which matters because revenue growth without operating leverage can be a weak small-cap signal.
There is enough downside language in the transcript to require follow-up on execution, timing, or disclosure quality rather than reading the quarter as fully clean.

Data Center Impact

The data-center angle appears investable but still needs sizing. The call connects the company to AI or compute-heavy infrastructure demand, which is directionally positive, but the thesis should depend on how much of that activity becomes durable revenue, royalties, and cash conversion rather than on thematic exposure alone.

Most Important Focus

How much of the AI or data-center engagement converts into recurring royalties or repeat revenue within the next four quarters?
What portion of backlog is cancellable, delayed, concentrated, or dependent on a small number of customers?
Can current margin levels persist as mix, headcount, and product investment change?
Did management quantify cash conversion and operating leverage, or only highlight revenue and demand?
Are customer wins broad enough to imply share gain rather than a few isolated projects?

Full Transcript

FY2026 Q2 earnings call transcript

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NASDAQ:DGXX Q2 2026 Earnings Call Transcript Generated on 8/18/2026 Operator | Conference Call Moderator: Good morning and welcome to DigiPowerX Inc.'s second quarter 2026 financial results conference call. Please note that this event is being recorded and a transcript will be available on DigiPowerX Inc.'s website. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Unless noted otherwise, all amounts referred to during the call are denominated in U.S. dollars. Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable U.S. and Canadian security laws. Such statements and information reflect current expectations and as such are expected 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 DigiPowerX Inc.'s report on Form 10Q, for the three and six months ended June 30, 2026, and the annual report for the year ended December 31, 2025, as well as the company's other disclosure documents. 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. 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 tables accompanying the press release highlighting DigiPower X financial results as of the quarter ended June 30, 2026. Good morning, everyone.

Michel | CEO & Chairman

and thank you for joining us today as we share our results for the second quarter of 2026 for DigiPowerX. I'll start with the highlight of the second quarter, three months ended June 30, 2026. Revenues of 6.6 million, reflecting the planned wind down of legacy operation as the company transitioned to AI, compute and colocation revenue. GPU revenue recognized for $1.1 million, representing the company's first GPU bare metal rental initial fleet of B200 and B300 GPUs deployed at the Columbiana, Alabama facility. And it was started a little bit third week of May to the end of June. It's about five weeks of income. Positive adjusted EBITDA of $3.3 million, an increase of $3.2 million compared to last year, Q2 2025. If you add all the depreciation and the non-cash related items, it brings us to a net loss of $14.4 million for the quarter. Balance sheet and liquidity as of June 30, 2026. Cash and cash equivalents of $142.4 million versus last year, $1.7 million. Working capital of $131 million, representing a $139 year-over-year increase from June 30, 2025. Basically, we had no working capital a year ago. Digital assets holding of $14.3 million. Net fixed assets and equipment deposits for the buildup of the data center in Colombiana, $127.5 million, an increase of 447% year over year, reflecting capitalized investment at the Colombiana Alabama facility.

Unknown Executive | Chief Financial Officer

No long-term debt. Total assets of $279 million versus $37 million a year ago. Balance sheet and liquidity as of today. The company's cash and cash equivalence position is approximately $150 million today.

Michel | CEO & Chairman

Approximately $110 million year-to-date of capital expenditures deployed towards GPU equipment and data center build-out for contract with Cerebras in Alabama facility.

Unknown Executive | Chief Financial Officer

Operational highlights and outlook.

Michel | CEO & Chairman

At the Columbiana Alabama AI campus, The company is still targeting phase 1 ready for service in December of 2026 and phase 2 in end of Q1 2027. Through its GPU as a service and bare metal rental, energy sales and legacy collocation segments, the company anticipates Q3 to increase by approximately over 100% as compared to Q2. Q2 signified a substantial turning point for DigiPowerX as the company recognized its first AI revenues ever along with positive adjusted EBITDA and growth substantially year over year. Our balance sheet remains a source of strength for the company as we hold approximately $150 million in cash and cash equivalent as of today, no long-term debt, and we have already deployed approximately $110 million of CapEx year-to-date into our infrastructure in Columbiana, Alabama. The company is currently in advance debt financing discussions for the Alabama Data Center to advance our path to growth and mitigate dilution. As you know, being the major shareholder since Privately, 2016, where I invested personal funds of about $8 million, I never sold one share and I'm very sensitive about dilution as it affects me primarily. So I am on the same side of most of shareholders. I try to mitigate dilution as much as we can. Considering that last year, 12 months ago, We have basically no cash, $1.7 million. We have basically no assets, $37 million. We have basically no working capital. We had to utilize certain tools like ATM in order to raise cash in order to be eligible for debt financing.

Unknown Executive | Chief Financial Officer

Now I'll be ready for a Q&A.

Operator | Conference Call Moderator

Thank you. We will now be conducting a question and answer session with questions previously asked by shareholders. First question, what are the remaining tasks that DGXX needs to complete before the company can deliver the first 15 MW to Cerebras?

Michel | CEO & Chairman

So basically, we are done with the first 15 megawatts in terms of equipment purchases. All the long-term equipments have been placed and we are starting to receive them this month, actually. We are actually a few weeks earlier than scheduled, so we feel very confident that we will be ready by December for phase one.

Unknown Executive | Chief Financial Officer

Thank you.

Operator | Conference Call Moderator

Second question, a similar question for phase two. What are the major items that need to be complete for delivering the second 25 MW.

Michel | CEO & Chairman

So we also are basically done for phase two. We secured and as mentioned earlier in our total assets, you saw a big portion of deposits for equipment. We already secured all the long-term equipment to the UC November, December. And we believe that we are in good shape to also complete phase two by March 2027.

Operator | Conference Call Moderator

Thank you. Our third question, as it relates to your NEO Clouds business and goal of exiting next year with delivery 10 MW and GPU as a service, What are the obstacles to securing leases for these smaller sized data centers? Is it capital, permits, locating long lead time items?

Michel | CEO & Chairman

So that's a very good, very interesting question. So we have no issue of power and permits in the sense that 10 megawatt is not a lot of power in our power infrastructure. So we do have the power and the allocation. GPU are very, very CapEx intensive. We started to buy GPUs and we are running very successfully, 100% uptime. Really successfully operation for us. And as you know, we placed more GPU orders, the Vera Rubin, that should lend early Q1 next year, and that will add additional income on the GPU Vermetol. Good news in the last few weeks, as you read, NVIDIA and most of the banks, BlackRock, Blackstone, Goldman Sachs, KKL, have created a fund and actually value, residual value for the GPUs. So it's gonna be much easier to get debt financing or asset-based financing on GPUs, which will allow us to accelerate our GPU bare metal program. So we feel comfortable that we get the financing separately from the data center for growth for GPUs.

Operator | Conference Call Moderator

Thank you. Our fourth question, given your sites in North Tonawanda, Buffalo, New York, does the one-year moratorium on data centers in New York impact your ability to meet your targets of exiting 2027, delivering on 10 MW for NeoCloud and 9AN additional 50 MW for co-location data centers for HPC?

Michel | CEO & Chairman

So great, so I get these questions a lot from many shareholders and I want you to appreciate shareholders that we've been running Gitcomb mining legacy operation there since 2016 on one site and since 2021 on another site and we were fully permitted then to run at these two sites on the moratorium law, which was, you know, it's not a new law. It was always there for the last four years or five years. And we are grandfathered in New York. We cannot expand our current footprint of power. So, I think we are using 60 megawatts We are using 18 MW in Buffalo. So we are allowed to use the same power. We are not allowed for now to expand power. But our goal is to just convert another co-location deal of 40 to 50 MW and GP as a service or bare metal for another 8 to 10 megawatts. That's our goal for 2027. So we have plenty of power there to sink our goal.

Operator | Conference Call Moderator

Thank you. Question number five. Please provide an update on the LOI Omni's Pleasance LLC, owner of the Pleasance Power Station, a 1.3 GW power generation facility in West Virginia.

Michel | CEO & Chairman

So great, so the owners of that power plant, one of the owners is AJ Gupta, he's on my board of directors, and we found an LOI, it's a monumental 1.3 gigawatts is huge and I do not want to be involved in the battle there on the power plant side. I just want to get land, access to the electrical infrastructure and utilize utility power of up to 1.3 gigawatts. So I'm working very hard with you know my board member to try to establish a growth path starting with 100 megawatt up to 1.3 gigawatt because the infrastructure is there without being involved in potential liabilities of a power plant. That's why it's a little bit slow and in any event it would be more for a end of 27 to 2030 Operator | Conference Call Moderator: Thank you. Our next question, what is the current strategy for companies' North Carolina property holdings?

Michel | CEO & Chairman

So we own two lands over there, about 40 acres. We acquired within the last 12 months an additional adjacent land so we can properly designed and built an adequate data center there. We are in the process with Youth Energies and the zoning to get all the necessary load studies permits for a major data center. And we believe that we will be able to utilize that asset towards 2029, 2030, with an additional 150 to 200 megawatts of power. So we are trying to plan our growth through all these sites from now till 2030, 31. And if we just, you know, succeed in converting or pivoting in colocation and GPU bare metal, half of these assets Unknown Executive | Chief Financial Officer: We've become a huge, huge, huge company.

Operator | Conference Call Moderator

Thank you. Next question. What is the current strategy for, I'm sorry, what is happening with U.S. Data Centers Inc.? Any updates?

Michel | CEO & Chairman

Yes, so the reason why U.S. Data Center all 48% today from 55% is that we started to raise separately dollars in order to avoid taking the cash that we need 100% on the balance sheets of DigiPower to fuel current data centers and future data centers growth. We cannot be distracted in financing a are basically an equipment business which is your data center purpose to basically design, manufacture modular system, mini data centers prefabricated that you assemble in different sites.

Unknown Executive | Chief Financial Officer

So we did not want to distract or pull any cash Michel | CEO & Chairman: from the DigiPower pool. So we started to raise money on this separately and we raised money up to $125 million pre-revenue valuation. We plan to raise a little bit more on a higher valuation and the plan for 27 is to deliver to different sites, modular systems, like a piece of equipment. So it's a complete different business purpose than DigiPower, which is in the power and data center processing and GPU bare metal.

Operator | Conference Call Moderator

Thank you. And our last question, is the company still using its ATM vehicle? How were the funds utilized? What are your strategies to mitigate shareholder dilution? And also, please provide an update on the company's debt financing discussions.

Unknown Executive | Chief Financial Officer

So that's one of the most important concerns from all shareholders, including myself, the biggest shareholder. Okay, it's sometimes the ATM is a necessary evil.

Michel | CEO & Chairman

And 100% I can assure you that with $1 million last year, $1.7 million last year of cash, I could never take off, borrow, stop any type of AI business, impossible. So I had to position the company in a way where we could be eligible to attract lenders with a strong balance sheet. Of course, everything has to be done in measures, and I think we raised most of our ATM capital early Q2 at an average of, I'm not going to guarantee the average, but much higher of our stock price today. I think our last ATM draw was at $7.25 or $7.50 a share. So we did not draw any dollars below that, if my memory serves right. So now we accumulated enough cash to, A, self-fund most of the data center of Alabama, So we are not at risk of execution from a financial perspective, and I think that it was very important to secure the execution of that first data center, which is the real catalyst force. Then, how can I talk to a lender if I don't have cash sitting on my balance sheet? Lenders want to see cash, strong balance sheets, specifically this year. So now, because we have a strong balance sheet, and I'll talk about the company debt financing discussion today, we ended up engaging Goldman Sachs, a very reputable bank that has proven to be able to syndicate a lot of financing for very big companies. We are very confident that we will lend debt financing for not only this project, which we will get cash back because we already, as we stated earlier, we already capex over $110 million. So we're going to get cash back, we're going to preserve a strong balance sheet, we find a great and other financial partners, not only for this year, but for next year and the next few years of growth, we have all the cards in our hands. A little bit of, you know, faith from our shareholders, the same faith that I give to my company that I invested privately 10 years ago, and we will be Very amazing situation in the next three months to six months.

Unknown Executive | Chief Financial Officer

You have to appreciate that in 12 months, we changed that company numbers dramatically.

Michel | CEO & Chairman

We went from $1.7 million to $150 billion of cash today plus $110 billion of CapEx. That's a huge delta. We went from $37 million of assets to $279 million of assets. You have a company that has real assets with a very, very, in my opinion, low market cap compared to the assets and compared to the cash.

Unknown Executive | Chief Financial Officer

So we are very close to execute our plan.

We execute. Michel | CEO & Chairman

That's our mission. We are focused on the execution. We have all the elements to do so. And next quarter, we should have a great update for you guys.

Operator | Conference Call Moderator

Thank you. And we have reached the end of the question and answer session. And therefore, Michel, do you have any closing remarks?

Michel | CEO & Chairman

I think I just did it. That was my closing remarks. You know, I need to be focused and all the team focus work. I wanted to add that subsequently we are building a very, very small team in Silicon Valley with our CTO Jag. We have very talented engineers building the layer of software for GPU as a service. We got an office that will be open soon, actually very close to Cerebras, NVIDIA, Super Macro. And we plan to offer more, to be all vertical in all the different layers of this business. And the team we are building, some come from, like Jack from Oracle, where he worked for like 11 years there as two gigawatt data centers. So I think we are in good shape. We just need to push, focus. The path is there. It's all about execution. And we are closing the loop on the financial answers to mitigate dilution. It's my goal. It's the goal for every company, but sometimes you have to get to a spot where you're eligible for debt financing. We are there now. Thank you, everyone.

Operator | Conference Call Moderator

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Have a good day. Thank you. jsPDF 3.0.3 D:20260818045337-00'00'

Source transcript

NASDAQ / FY2026 Q1

Research summary and source transcript

readyJun 10, 2026

AI summaryFull transcript

Research Summary

DigiPowerX is executing a strategic pivot from legacy cryptocurrency mining to AI infrastructure, leveraging owned power assets to launch GPU-as-a-service and co-location businesses. The company has achieved positive adjusted EBITDA of $1.1 million in Q1 2026, up from -$1.3 million a year ago, and holds a strong balance sheet with $125 million in cash and $15 million in digital assets as of May 15, 2026. While early AI revenues have begun, the transition remains in its infancy, with most financial upside contingent on future execution of phased data center build-outs and contract scaling.

Framework #1 / Information Gradient

Management knows today that the company has already begun generating AI revenues from its initial GPU fleet deployment as of the call date (May/June 2026), has secured a 10-year, $1.1 billion expandable contract with a top chip maker (potentially up to $200 billion), and has connected 200-210 MW of power to the grid with plans to reach 393 MW by end of 2028 via owned sites. These specifics — particularly the near-term revenue onset, contract magnitude, and power capacity timeline — are not yet reflected in market expectations, which likely still view the company as a speculative crypto-to-AI transition play without confirmed near-term revenue visibility or contracted backlog.

Layer 1 / Business Engine

Owned power capacity (MW), GPU-as-a-service utilization, and long-term co-location contracts underpin revenue generation and scalability.

Layer 2 / Management Topics

Transition from crypto mining to AI infrastructure
Strength of balance sheet and liquidity position
Owned power assets and site portfolio (Alabama, Niagara Falls, etc.)
GPU-as-a-service (NEO Cloud V) and co-location business models
Progress on Colombiana Alabama facility build-out
Debt financing strategy to avoid equity dilution

Layer 3 / Management Excitement

Detailed description of the $1.1B expandable chip maker contract and its implications for credibility and future expansion
Emphasis on owning substations and power generation enabling 'speed to market' for AI workloads
Excitement about delivering first GPU bare metal rental 'as of today' and testing NVIDIA B200/B300 GPUs
Repeated references to $125M cash and $15M digital assets as a 'firepower' for execution
Optimism about 70/30 loan-to-cash financing enabling growth without dilution

Layer 4 / Avoidance

Management speaks with directness and conviction, particularly when discussing the strategic pivot, contract wins, and balance sheet strength. The CEO uses specific timelines, dollar amounts, and technical details (e.g., GPU models, MW capacities) that suggest preparedness and internal clarity. While optimistic, the tone avoids vague futurism and instead anchors excitement in near-term milestones like 'live today' revenue and year-end capacity targets. There is no evident defensiveness or obfuscation; even when discussing past crypto mining, the framing is analytical rather than apologetic.

No clear dodged analyst question was detected by the local fallback; manual review should still check whether Q&A answers quantified conversion, margins, and guidance.

Goalpost Moving

There may be a benchmark or metric-framing issue worth manual review, especially around adjusted metrics, timelines, or changed expectations.

Layer 5 / Competitive Position

The company appears to be winning competitively in its niche due to its unique ownership of power generation and interconnection assets, which enables faster deployment and lower energy costs than conventional co-location or cloud providers reliant on third-party utilities. The early GPU-as-a-service revenue and major chip maker contract suggest credible differentiation. However, long-term competitiveness depends on scaling beyond initial contracts and maintaining utilization in a rapidly expanding AI infrastructure market where players like CoreWeave, Lambda, and even hyperscalers are aggressively expanding.

Key Figures

Q1 2026 adjusted EBITDA: $1.1 million (vs. -$1.3 million in Q1 2025)
Cash and cash equivalents: $71.4 million as of March 31, 2026; ~$125 million as of May 15, 2026
Digital asset holdings: $14.6 million as of March 31, 2026 (~208% YoY); ~$15 million as of May 15, 2026
Year-to-date CapEx: ~$45 million deployed toward GPU and data center build-out at Colombiana facility
Connected power capacity: 200-210 MW live today; target of 393 MW by end of 2028
First AI revenues: began 'as of today' (call timeframe) from initial GPU deployment

Key Catalysts

Phase one of Colombiana AI campus ready for service by December 2026, completion Q1 2027
NEO Cloud V GPU-as-a-service already live and generating revenue from initial NVIDIA B200/B300 fleet
10-year, $1.1B expandable contract with top chip maker providing predictable revenue and partnership leverage
Planned expansion to 393 MW of owned power capacity by end of 2028 via road study completion
Ability to finance future data centers via 70/30 loan-to-cash debt structure using strong balance sheet

Risk Flags / Open Questions

Revenue projections for 2028-2029 ($450B–$1B run rates) are highly speculative and not tied to near-term visibility
Dependence on securing debt financing on favorable terms to execute build-out without dilution
Unproven ability to scale GPU-as-a-service beyond initial fleets despite early revenue claims
Concentration risk in single large contract with chip maker despite claims of expandability
Execution risk in co-location business model given lack of detail on tenant acquisition or pricing power

Data Center Impact

The company has direct and material exposure to AI/data-center demand through its owned power sites and deliberate pivot to GPU-as-a-service and co-location businesses. It is not speculative: management confirms live AI revenues from GPU deployments, a signed contract with a top chip maker, and active build-out of the Colombiana Alabama facility. The strategy is to vertically integrate power ownership with AI compute to capture margin, distinguishing it from traditional co-location or cloud providers. There is no indication of indirect or peripheral exposure — AI infrastructure is the core post-transition business model.

Most Important Focus

What is the actual revenue generated to date from the NEO Cloud V GPU-as-a-service business, and what is the run-rate exit expectation for Q4 2026?
What are the specific terms (duration, pricing, renewal options) of the $1.1B expandable chip maker contract, and what portion is fixed vs. variable?
What is the detailed CapEx breakdown of the $45 million year-to-date spend, and how much remains to complete phase one of the Colombiana facility?
What is the expected timeline and cost to bring the additional 180 MW of power (to reach 393 MW) online, and what permits or studies are pending?
How does the company plan to monetize the 200-210 MW of currently connected power beyond the initial GPU contract, and what is the utilization target for co-location vs. GPU-as-a-service?
What are the assumed utilization rates and pricing per MW used to derive the $300M–$1B annual run rate projections for 2027–2029?

Full Transcript

FY2026 Q1 earnings call transcript

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NASDAQ:DGXX Q1 2026 Earnings Call Transcript Generated on 6/6/2026 Conference Operator | Investor Relations / Call Moderator: Good morning and welcome to DigiPOWER X Inc's first quarter 2026 financial results conference call. Please note that this event is being recorded and a transcript will be available on DigiPOWER 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 U.S. dollars. Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable U.S. 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. Those risks and uncertainties include, but are not limited to, factors discussed in DIGI's Power X inks report on form 10 Q through 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, except to the extent required by applicable law. Did you power x undertakes no obligation to publicly update or review any forward looking statements for 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. 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 DigiPowerX financial results as the quarter ended March 31, 2026, have been filed and made accessible under the company's continuous disclosure profile on CDAR Plus at www.cdarplus.ca and are also available on the SEC's EDGAR website at www.sec.gov slash EDGAR. I would now like to turn the call over to Michelle Lamar, CEO of DigiPowerX. Thank you.

Please go ahead. Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

Good morning, everyone, and thank you for joining us today. Our Q1 2026 results underscore a transformational year in which the company's French-language bank sheet comments the ramping down of its cryptocurrency mining sales as a capital-like infrastructure-scale AI computing platform with a clear path to nine-figure annual revenues. First quarter 2026 financial highlights. Three months ended March 21st, 2026. Positive adjusted EBITDA of $1.1 million from a negative $1.3 million last year Q1 2025. Revenue of $6.8 million reflecting the planned wind-down of legacy operations as the company transitions to AI, compute, and co-location revenues. Balance sheet and liquidity as of March 31st, 2026. Cash and cash equivalents of 71.4 million. Working capital of 67.2 compared to negative 0.8 million at March 31st, 2025. Digital asset holdings of 14.6 million of 208% year over year. Net fixed assets of $26 million have 29% year-over-year reflecting capitalized investment at the Colombiana Alabama facility. No long-term debts. 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 towards GPD equipment and data center build-out, principally at the Colombiana Alabama facility. Operational highlights, Colombiana Alabama AI campus. The company is starting phase one ready for service December of 2026, Completion Q1, 2027. NEO Cloud V GPU as a Service. NEO Cloud V, 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. Q1 2020 seed marks and inflection points for DigiPowerX. Adjusted with data, we've become positive, even as we deliberately run down leadership 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, and we have already deployed approximately $45 million of CapEx year-to-date into GPUs and infrastructure at Colombiana. That is a firepower to execute phase one on the operational platform that follows. Thank you for joining us today. We will now take questions.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

Good morning, everyone. So I stated earlier We ended up with actually $73 million cash March 31st with an adjusted EBITDA of $1.1 million compared to . And the adjusted EBITDA is basically all the non-cash item deducted from the net loss. we actually reflect the DTP capital management and provide us with enough cash to execute on our phase one Colombiana commissioning. It also allows us to leverage our balance sheet to get better debt financing for the future.

Conference Operator | Investor Relations / Call Moderator

Thank you. Do you have any debts?

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So as of the zero debt capital structure, as of March 24, 26, as of May 15, we still maintain that zero debt. We are in discussion with different lenders in order to mitigate dilution and leave our the strongest balance sheet we ever had in the history of a company between cash and cash equivalent of $125 million and digital assets that are uncovered of about 15. We basically have $140 million cash, cash equivalent and digital assets that we can leverage to get comfortable financing, best financing, some future data center developments so we don't tap into the equity dilution.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So that was the greatest decision we made. The decision transition from crypto mining to AI infrastructure, was the most consequential strategic decision in company history. In 2025, two realities had converged. First, the economies of Bitcoin mining had become increasingly compressed and cyclical, while domain for AI and compute infrastructure was entering a generational growth phase driven by frontier model training and inference scaling. But most importantly, we had spent years a portfolio of power-rich sites in Alabama, Niagara Falls, North Carolina, Buffalo, and they were uniquely suited to upscale AI workloads. 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 forms. one speed to market we don't need to wait for a interconnection with the utility we own the substation we have a utility interconnections we also generate power through our compound cycle gas power plant as we acquire in 2022 and and that allow us to be 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 and deliver in a basically wake-up time period by the end of this year.

Conference Operator | Investor Relations / Call Moderator

Thank you. How is the company positioned to capture AI infrastructure demand at scale as compared to conventional co-location and cloud competitors?

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So we're not a traditional co-operator. We're not an upscale cloud. We believe in the structural advantage of the current AI demand environment. 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. One is the Neoclad GP as a service, which, by the way, we are live as of today, which greatly our ability to execute. 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 ADDR D200-300GP of the service offering that we intend to scale up. And then we have the co-location strategy, which is basically a modified list where we basically sign a 10-year deal for a billion won that will ensure stability and income without the enormous cap of GPUs. So our business model today is to develop both businesses, co-location, because we do have the power and sizable power, And as a service because we are vertical and we try to optimize every megawatt of power we own and the vertical give us a much bigger revenue stream.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So we went through the painful last six months of raising capital, therefore diluting the company. But now that we have basically 125 million of cash and no debt, we can leverage the balance sheet and we are able now to avoid future dilution or mitigate the illusion by financing the growth of our future data centers through debt financing. And having a strong balance sheet helps you to get, you know, better terms in terms of financing. We are seeing 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 bank financing.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So far today, we have connected to the grid about 200 megawatt, 210 megawatt live connected to the grid that we can turn into AI revenues. And we are coming up basically another 180 megawatts where we should get back our road study by 2028, end of 2028. That will give us a total of about 393 megawatts of secure capacity across our site that we own. We also have a 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.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So the year-to-date was an execution achievement. We did the rental agreement a new upcoming lab, and we delivered in a very short period of time, on time. You know, our contract was at the May 15 RSS, and we delivered on time, so we believe it was a very incredible teamwork. We teamed up with, you know, the AVDR team and Supermetro team, and our team in Alabama, and we delivered our first GPU bare metal rental as of today. 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 1.1 billion, expandable to up to 200 billion, and that gives 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 expansion in the next few years.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

Today. We started today, we ended up last night be the first GPU to our customer. And, you know, we're working very hard in the last few weeks. We received the GPUs from NVIDIA first week, first few days of May. And we tested it, commissioned it, and delivered the GPUs to the customer. So we are starting our AI revenues as of today.

Conference Operator | Investor Relations / Call Moderator

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?

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So we expect to expand our with another few megawatts. Today that first contract that we delivered was a little bit under one megawatt, and we expect to deliver at the end of the year an additional six megawatts. And we get the revenues potentially last quarter of this year or early quarter next year. And we're going to deliver the first quarter, the first phase Collocation contract, December 2026, it's about 15 megawatts, and we'll end up internalizing the second phase, Q1 2027, which would be an additional 25 megawatts for a total of 40 megawatts, which would be a running $8 million, $9 million run rate for the collocation. And it's about, in GPU, it would be about $780 a month, first quarter of 2027.

Conference Operator | Investor Relations / Call Moderator

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

Michelle Amar | Chief Executive Officer, DigiPowerX Inc.

So, we won'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. We do have access to power. So our strategy is to turn that power into AI revenues. And our goal is to, for 27, be active with 90 megawatt worth of collocation and basically transfer megawatt of GP as a service. That would give us a total run rate of $300 a year. In 2028, we plan to add an additional 50 megawatt of collocation and 20 megawatt of GP metal. that would give us a $450 to $500 billion year run rate. And in 2029, an additional 100 megawatts of collocation, an additional 50 megawatts of GPU bare metal, that would give us a $800 to $1 billion run rate per year. 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. This is our plan for the next 36 months.

Conference Operator | Investor Relations / Call Moderator

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 walk off the webcast at this time and enjoy the rest of your day. jsPDF 3.0.3 D:20260606090103-00'00'

Source transcript

NASDAQ / FY2025 Q4

Research summary and source transcript

failedJun 10, 2026

AI summaryFull transcript

Research Summary

DGXX FY2025 Q4 earnings-call analysis could not be generated from a fetched transcript.

Framework #1 / Information Gradient

Information Gradient cannot be assessed until a readable transcript is available.

Layer 1 / Business Engine

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Layer 2 / Management Topics

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Layer 3 / Management Excitement

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Layer 4 / Avoidance

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No obvious dodged questions were stored.

Goalpost Moving

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Layer 5 / Competitive Position

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Key Figures

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Key Catalysts

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Risk Flags / Open Questions

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Data Center Impact

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Most Important Focus

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Full Transcript

FY2025 Q4 earnings call transcript

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This analysis was stored before transcript text persistence was enabled. Re-run earnings-call ingestion for this quarter to store and display the full transcript.

NASDAQ / FY2025 Q3

Research summary and source transcript

readyJun 10, 2026

AI summaryFull transcript

Research Summary

DigiPowerX reported a transformational Q3 2025 with positive net income of $300,000 versus a $6.4 million loss in the prior year, driven by a strategic pivot to AI infrastructure and improved liquidity. The company strengthened its balance sheet with over $90 million in cash and digital assets, eliminated long-term debt, and advanced its ARMS 200 Tier 3 AI pod deployment timeline, with first modules expected online in Q1 2026. While the shift to AI compute and co-location services is underway, revenue generation from these initiatives remains future-oriented and unproven at scale.

Framework #1 / Information Gradient

Management knows today that the first ARMS 200 Tier 3 AI pod assembly began in Q4 2025 and will be online in Q1 2026, with phased deployment of 55 megawatts of critical IT load by Q4 2026 across Alabama and New York sites, supported by approved 60-megawatt load studies and existing power availability of nearly 200 megawatts. They also know that NeoCloud Z, their GPU-as-a-service platform, is ready for launch in January 2026 and is being integrated with Supermicro hardware. The market likely will not know for 6-24 months whether these modules achieve expected utilization, co-location contract conversions at $140–$150/kW/month, or NeoCloud Z adoption sufficient to generate the projected $50 million in co-location and $15 million in GPU service revenue for 2026, or whether power capacity can be monetized as AI compute rather than legacy mining.

Layer 1 / Business Engine

Power availability for AI infrastructure deployment, successful deployment and utilization of ARMS 200 modular data center pods, and monetization of co-location and GPU-as-a-service (NeoCloud Z) offerings.

Layer 2 / Management Topics

AI infrastructure transition and Tier 3 data center conversion
Liquidity position and balance sheet strength
ARMS 200 platform development and deployment timeline
Partnership with Supermicro for hardware and integration
NeoCloud Z GPU-as-a-service platform launch
Power availability across Alabama, New York, and North Carolina sites

Layer 3 / Management Excitement

Detailed description of ARMS 200 modular system capabilities, including 180-day deployment and scalability vs. hyperscale
Specific revenue projections for 2026 co-location ($50 million at 20 MW average) and NeoCloud Z ($15 million from 1,024 GPUs)
Emphasis on 2026 as a 'real transformational year' and 'full cycle of developing AI'
Highlighting NeoCloud Z as a high-margin retail compute platform for startups and research institutions
Pride in achieving positive net income and EBITDA after prior-year losses

Layer 4 / Avoidance

Management communicated with directness and specificity, particularly when detailing technical aspects of the ARMS 200 platform, deployment timelines, revenue models, and partnership with Supermicro. The CEO provided quantifiable assumptions (e.g., 20 MW average load, $140–$150/kW/month co-location rates) and concrete milestones (Q1 2026 pod online, January 2026 NeoCloud Z launch), which enhances credibility. While forward-looking, the tone was grounded in near-term actions already taken (CAPEX spent, warrants reduced, debt eliminated) and avoided vague optimism. There was no evident defensiveness or evasion in prepared remarks, and responses to questions were detailed and on-topic.

No clear dodged analyst question was detected by the local fallback; manual review should still check whether Q&A answers quantified conversion, margins, and guidance.

Goalpost Moving

There may be a benchmark or metric-framing issue worth manual review, especially around adjusted metrics, timelines, or changed expectations.

Layer 5 / Competitive Position

The company appears to be positioning itself competitively in the niche of modular, power-adjacent Tier 3 AI infrastructure for mid-market and enterprise clients, leveraging its existing power assets and Supermicro partnership to accelerate deployment. It is not competing with hyperscalers but targeting customers underserved by AWS/Azure, particularly via NeoCloud Z. However, without evidence of booked contracts, customer acquisitions, or utilization rates, it is not yet possible to assess whether it is winning or losing — only that it has built the foundational assets to compete.

Key Figures

Q3 2025 net income: $300,000 (vs. $6.4 million loss in Q3 2024)
Q3 2025 EBITDA: $1.9 million positive; Adjusted EBITDA: $0.8 million positive
Working capital: $15 million in Q3 2025 (up from $0.5 million in Q3 2024)
Cash and equivalents: over $90 million (including BTC, ETH)
Digital assets: 97 Bitcoin ($15.4 million total value, up 213% YoY)
CAPEX: $3.1 million in Q3 2025; $9.5 million year-to-date, primarily tied to Tier 3 AI data center conversion
Energy revenue: $8.7 million YoY growth (112%), representing ~35% of Q3 2025 revenues
Projected 2026 co-location revenue: ~$50 million (based on 20 MW average at $140–$150/kW/month)

Key Catalysts

Online date of first ARMS 200 Tier 3 AI pod in Q1 2026
Launch of NeoCloud Z GPU-as-a-service platform in January 2026
Phased deployment of 55 megawatts of AI IT load by Q4 2026
Conversion of power assets from Bitcoin mining to AI co-location and compute
Potential signing of long-term (5–15 year) co-location contracts
Validation of Supermicro partnership through joint deployment and integration

Risk Flags / Open Questions

AI infrastructure deployment timelines (Q1 2026 ARMS 200 online, Q4 2026 55 MW target) may slip due to supply chain, integration, or execution delays
Co-location revenue projections depend on securing contracts at $140–$150/kW/month and achieving 20 MW average utilization in 2026, which is unproven
NeoCloud Z adoption and pricing power in a competitive GPU-as-a-service market remain uncertain despite claims of high margins
Continued reliance on Bitcoin mining and energy sales to grid for near-term revenue creates exposure to crypto price volatility and energy market fluctuations
Ability to scale beyond 55 MW by 2026 and access additional power (e.g., North Carolina 200 MW in 2028) depends on regulatory, interconnection, and capital availability
Customer concentration risk if co-location contracts are limited to few large clients or fail to materialize at expected scale
Supermicro partnership execution risk if integration delays or service gaps affect ARMS 200 deployment or NeoCloud Z performance

Data Center Impact

DigiPowerX is directly pivoting its existing power infrastructure toward AI data center operations, with explicit focus on Tier 3 AI-ready modular facilities. The company has repurposed capital expenditures ($9.5 million YTD) toward ARMS 200 pod assembly and grid-connected sites in Alabama and New York. It is not merely supplying power to third-party data centers but building and operating its own AI compute infrastructure. The impact is substantive and operational, not speculative: they are deploying hardware, signing co-location terms, and launching a GPU service platform. There is no indication of indirect or peripheral AI exposure — the entire strategic shift centers on becoming a Tier 3 AI infrastructure provider.

Most Important Focus

What is the current status of the first ARMS 200 pod assembly in Alabama, and is it on track for end-of-December completion and January 2026 testing?
What specific co-location customers or pipeline discussions exist for the Alabama and New York sites, and what are the expected contract terms and durations?
What is the confirmed hardware specification and performance validation plan for the NeoCloud Z platform with Supermicro and NVIDIA?
What portion of the $90+ million liquidity is allocated to AI infrastructure build-out versus working capital or digital asset holdings?
How will revenue from energy sales to the grid trend as power is redirected from Bitcoin mining to AI co-location and compute?
What are the actual utilization assumptions behind the $50 million 2026 co-location revenue estimate, and what milestones will indicate progress toward 20 MW average load?
Are there any contingent liabilities or obligations tied to the warrants reduction or digital asset holdings that could affect liquidity?
What is the expected gross margin profile for co-location versus NeoCloud Z services, and how will the blend evolve over 2026–2027?

Full Transcript

FY2025 Q3 earnings call transcript

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NASDAQ:DGXX Q3 2025 Earnings Call Transcript Generated on 6/6/2026 Conference Call Moderator | Investor Relations: Good morning and welcome to DigiPowerX, Inc.' 's third quarter 2025 financial results conference call. Please note that this event is being recorded and a transcript will be available on DigiPowerX, Inc.' 's website. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Unless noted otherwise, 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 securities 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. Those risks and uncertainties include, but are not limited to, factors discussed in DigiPowerX, Inc.' 's report on Form 6-K for the three and nine months ended September 30, 2025, and the annual report for the year ended December 31, 2024, as well as the company's other disclosure documents. 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-IFRS measures that are not separately defined under IFRS, such as EBITDA and adjusted EBITDA. Management believes that those non-IFRS measures, when considered in conjunction with IFSC, IFRS financial measures provide useful information for both management and investors. Reconciliations between IFRS and non-IFRS measures are presented in the tables accompanying the press release highlighting DigiPowerX financial results as of the quarter ended September 30, 2025. have been filed and made accessible under the company's continuous disclosure profile on CDAR Plus at www.cdarplus.ca and are also available on the SEC's EDGAR website at www.sec.gov forward slash EDGAR. I would now like to turn the call over to Michelle Amar, CEO of DigiPowerX. Please go ahead, sir.

Michelle Amar | Chief Executive Officer

Good morning, everyone. Q3 2025 was a transformational quarter for DG PowerX as we strengthened our balance sheet, accelerated our shift into AI infrastructure, and delivered positive net earnings. Quarter highlights. Working capital went from half a million dollars in Q3 2024 up to 15 million dollars This quarter. Net income, positive. $300,000 versus a 6.4 million loss last year. EBITDA, $1.9 million positive. Adjusted EBITDA, $0.8 million positive. Digital assets. BTC holdings up 143% to 97 Bitcoin. Ethereum, 1,000 tokens. Total digital currency value, 15.4 million, up 213% year over year. Warrants, reduced from 8.8 million warrants to 2.6 million outstanding. Debt, no long-term debt. CAPEX, $3.1 million in Q3, 9.5 million year-to-date, primarily tied to tier three AI data center conversion. Strategic and operational progress. Our first ARMS 200 Tier 3 AI pod assembly began in Q4 2025 and will be online in Q1 2026. Approved 60 megawatt load study in New York enabling future AI expansions. First NVIDIA D200 cluster built with Super Macro on track for Q1 2026 activation. advancing long-term co-location and AI compute agreement with multiple potential customers. Beginning January 2026, ARMS 200 modules will be deployed across all Tier 3 sites. Energy revenue grew 112% year-over-year to $8.7 million. Cost of revenue and depreciation reduced by 9.3 million year-to-date. Neoclub-Z, our GPU as a service platform, launching January 2026. Financial position today. Over $90 million in cash, BTC, ETH, and equivalents. The strongest liquidity in company history. Our liquidity equals more than one-third of our market cap. This capital fully supports the 2026 AI infrastructure built out. AI transition across power assets. Phase 1 deployment. Q1 2026, 5 megawatts. Phase 2, Q2 2026, 15 megawatts. Phase 3, Q3 2026, an additional 30 megawatts. So by Q4 2026, we would have deployed 55 megawatts which is 40 megawatt critical IT load. Current power availability, Alabama 55 megawatt, New York upstate 141.7 megawatt, for a total of close to 200 megawatts of power available for 2026. North Carolina, an additional 200 megawatts anticipated in 2028. DigiPowerX is now firmly positioned as a next-generation Tier 3 AI infrastructure company. With the ARMS 200 platform, the Neoclass Z platform, major power capacity, and Tier 3 deployment on the way, we are building a scalable identity AI compute ecosystem ready to serve both emerging AI companies and enterprise customers. We've never been better positioned for growth.

Conference Call Moderator | Investor Relations

Thank you. We'll now be conducting a question and answer session. Our first question comes from Jeremy Hayes. What are your expectations in AI revenues in 2026 and 2027?

Michelle Amar | Chief Executive Officer

Great question, Jeremy. So, Related to the scaling up of our first module infrastructure, ARMS 200 in Alabama, which we intend to complete quarter after quarter up to 40 megawatts of IT load, mostly 75% to 80% will be co-location. And the collocation range is about $140 to $150 a kilowatt hour per month. To give you a little bit of a size of income, if we average 20 megawatts, because we are scanning up, we estimate roughly about $50 million in revenues average for the year 2026 in co-location. The second part of AI revenues will be our GPU at service through our NeoCloud Z platform, which we built with Super Macro. And that we anticipate about 1,024 B200, B300 NVIDIA chips GPUs online generating with a scale up about $15 million. So the growth estimate for 2026 related to the execution of the infrastructure through our arms 200 system solution should be roughly about 65 million. On top of that, we will have the existing Bitcoin mining, which should be even with last year. And we have to add a fourth stream of income, which is our energy cells to the grid through our power plant. which to give you a sense for this year, so far we are at $8.9 million year-to-date selling energy, which is for Q3 was about $3.1 million energy sales, which represents on this quarter Q3 over 35% of our revenues.

Operator | Conference Call Operator

Thank you. What are the current debts?

Michelle Amar | Chief Executive Officer

We do not hold any long-term debts. We are current. We have no obligations, no trigger that could hurt the company. We are completely debt-free. So I think we have the lowest payable ever in our company.

Operator | Conference Call Operator

Thank you. How is your current cash holding?

Michelle Amar | Chief Executive Officer

So, we are holding a little bit more than $90 million total. Most of it is in cash. We have a few holdings of crypto Bitcoin mining, about 115 or 16 Bitcoins. And we have a thousand Ethereum. And everything else is in cash. And that accounts today a little bit above $90 million, which allows us to really develop our modular system. We actually, this year, year-to-date, already spent close to $10 million. So the first development of Q1 has already been paid for. The first ARMS 200, which will be assembled in the next few weeks in Alabama, and that's rated 3, will be on end of December, tested the first week of January along with Super Macro team as we plan to have this ARMS 200 system on the partnership book of Super Macro.

Unknown | Participant

So, which will be a very interesting development for us.

Operator | Conference Call Operator

Thank you. Our next question comes from the line of Patrick Gray.

Conference Call Moderator | Investor Relations

Can you please describe the ARMS AI-ready modular solution platform?

Michelle Amar | Chief Executive Officer

Great. So, DigiPowerX, a wholly-owned subsidiary U.S. data center, HINC, has developed a proprietary ARMS platform, ARMS for AI-ready modular system. We developed that platform early this year, I would say 10, 11 months ago, with SuperMac Pro. And it's really an incredible product system that we can also develop for our own sites. for other people's sites. We can deliver this system within 180 days. And it's built for all kinds of chips, primarily for the NVIDIA B200, B300. It can be customized for other servers or other chips. It's really a modular system that as three product line, one megawatt, five megawatt, and 10 megawatts. And we can expand it much faster than an hyperscale building that takes a couple years. In our opinion, for 2026, this is an incredible opportunity demonstration of what we can do at the speed we can do. Of course, the reason why we can develop it in a faster way than an hyperscale is that we already have the high-voltage substations. We already have the connection with the grid power. Our power plants generate power as well. So we are connected already with power. All we need to do is to insert this modular system that are rated three, ready for, you know, redundancy and uptime in standard in compliance with the tier three. I think you're allowed to 1.6 hour of downtime a year. So we are ready. We got rated three. 2026 is going to be a real transformational year for us. And we expect to enter our full cycle of developing AI.

Operator | Conference Call Operator

Thank you. Can you please go into some detail on your relationship with Supermicrocomputers Inc.? ?

Michelle Amar | Chief Executive Officer

So we developed a very interesting relationship with SuperMacro. They are a pretty large company. They have a very good relationship with NVDR. And in order to leverage their human resources and resources, we choose SuperMacro and we integrated it. their optimized service rack directly to our arms system parts and we designed it that way. So Supermicro is doing a very big part of the job by supplying racks ready to go. We also partner with them on all the software integration and It's really very, very helpful that allows us to have a very big team on our side with a very small GNA because we're a very low SGNA and we are leveraging the Supermicro team. They will be a long, they are coming to our side actually end of this month, November 28th. they will come and start to prep with our people the setup of our modular systems, both in upstate and in Alabama.

Operator | Conference Call Operator

Thank you. Our next question comes from the line of Anthony Sphere.

Conference Call Moderator | Investor Relations

Can you please describe the retail compute platform NeoClouds, who the potential customers or end users will be?

Michelle Amar | Chief Executive Officer

So we developed that platform. Actually, Alec Amard developed it along with, again, SuperMacro. And it's geared for the smaller players, not for the hyperscaler customers. It's for the AI developers or ML engineers. Startup companies, there's plenty of startup companies now that need access to a infrastructure, and it's hard for them to get access to a hyperscaler. Research institutions and universities, no hyperscaler cooperation priced out of AWS, Azure, or NVIDIA Cloud capacity. HPC workloads for simulation, modeling, and data processing. So we will serve, it's kind of our retail service, GPU at the service, and we expect to develop that portal or that direct vertical GPU at service to be 20, 25% of our total revenue. So the breakdown would be 75% collocation with longer contracts. And we are in negotiation now anywhere from 5 to 10 to 15-year contracts. And there's a lot of demand for 2026, early 2027. We are trying to get the best scenario or the most solid contract you know, 15-year contract. It's like a modified lease on AI infrastructure. And simultaneously, we are developing this. It's ready. It will be online January. We are developing this platform, NeoCloud Z, backed by Super Macro. And we will be able to integrate multiple customers, all kind of customers for deep learning for any kind of applications. And that will result in a much higher margin. One is pretty, the collocation margins are pretty set and revenues. The direct GPU ad service provide very high margin. So blended, we'll have a very healthy margin in the AI business.

Operator | Conference Call Operator

Thank you. This concludes our Q&A session and thus concludes our call today.

Conference Call Moderator | Investor Relations

We thank you for your interest and participation. You may now disconnect your lines. jsPDF 3.0.3 D:20260606090104-00'00'

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