Digi Power X Announces Entry into Settlement Agreement

Rhea-AI Summary

Digi Power X (Nasdaq:DGXX) announced a settlement with H.C. Wainwright & Co. resolving disputed compensation tied to a registered direct financing closed July 23, 2025. Under the agreement, Digi Power X will pay a cash fee of US$840,000.12 and issue a warrant exercisable for 269,231 subordinate voting shares at US$2.85 per share for five years from issuance. All securities issuable under the agreement are subject to approval by the TSX Venture Exchange.

Positive

• Settlement resolves disputed financing compensation
• Cash obligation limited to US$840,000.12

Negative

• Warrant issuance for 269,231 shares may dilute shareholders
• Warrants exercisable for five years could increase share count

News Market Reaction

+4.21%

12 alerts

+4.21% News Effect

+2.8% Peak in 5 hr 37 min

+$8M Valuation Impact

$192M Market Cap

0.6x Rel. Volume

On the day this news was published, DGXX gained 4.21%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.8% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $192M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Settlement cash fee: US$840,000.12 Settlement warrant shares: 269,231 shares Warrant exercise price: US$2.85 per share +5 more

8 metrics

Settlement cash fee US$840,000.12 Cash payment to H.C. Wainwright under settlement agreement

Settlement warrant shares 269,231 shares Warrant for subordinate voting shares to Wainwright

Warrant exercise price US$2.85 per share Exercise price for settlement warrant, 5-year term

Warrant term 5 years Exercise period from date of issuance for settlement warrant

Liquidity ≈$100 million Approximate liquidity as of Jan 1, 2026

Liquidity growth 1,150% Year-over-year liquidity increase vs Jan 1, 2025

Cash available ≈$79 million Cash available within total liquidity as of Jan 1, 2026

Cash, BTC, ETH, deposits ≈$97 million Cash, BTC, ETH and deposits as of Nov 30, 2025

Market Reality Check

Price: $3.22 Vol: Volume 2,993,155 vs 20-da...

normal vol

$3.22 Last Close

Volume Volume 2,993,155 vs 20-day avg 4,078,562 (relative volume 0.73). normal

Technical Price $2.85 trading above 200-day MA at $2.65.

Peers on Argus

DGXX showed a positive move of 4.78% while peers were mixed: STEM +1.84%, VGAS +...

1 Up

DGXX showed a positive move of 4.78% while peers were mixed: STEM +1.84%, VGAS +3.14%, SAFX -6.73%, PAM +0.07%, TAC -1.43%. Momentum scanner only flagged NXXT at +5.91%, indicating largely stock-specific action for DGXX.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Strategic partnership LOI	Positive	+0.0%	LOI for 1.3 GW power plant to support AI infrastructure.
Jan 06	Liquidity and GPU update	Positive	-2.5%	Reported ~1,150% liquidity growth and first B200 GPU cluster update.
Dec 24	Shareholder letter	Positive	-1.8%	Outlined 2025 pivot to AI infrastructure and >$100M liquidity.
Dec 08	CTO appointment	Positive	+7.8%	Appointed CTO to lead ARMS 200 and NeoCloudz technology roadmap.
Dec 03	GPU cluster deployment	Positive	-4.1%	Announced ARMS 200 deployment and first NVIDIA B200 GPU cluster.

Pattern Detected

Recent positive operational and strategic updates often saw muted or negative next-day moves, with only 2 of 5 prior news events aligning positively with price.

Recent Company History

Over the past months, Digi Power X reported several strategic updates around its pivot to power-backed AI infrastructure. It announced ARMS 200 Tier III modular data center deployment, GPU cluster progress in Alabama, and plans for its NeoCloudz platform, alongside liquidity growing to about $100M and remaining debt-free. A shareholder letter detailed power positions totaling hundreds of MW across U.S. sites. Despite largely positive themes, price reaction after these announcements was often negative or flat, framing today’s settlement news against a backdrop of mixed market responses.

Market Pulse Summary

This announcement details a settlement requiring a cash fee of US$840,000.12 and a warrant for 269,2...

Analysis

This announcement details a settlement requiring a cash fee of US$840,000.12 and a warrant for 269,231 subordinate voting shares at US$2.85 for five years, subject to TSX Venture Exchange approval. It follows recent updates highlighting liquidity of roughly $100M and progress on AI-focused infrastructure. Investors may monitor any future updates on capital structure, warrant exercises, and how these obligations interact with previously disclosed cash and digital asset balances.

Key Terms

warrant, registered direct financing, prospectus supplement, subordinate voting shares

4 terms

warrant financial

"and to issue to Wainwright a warrant exercisable for up to an aggregate of 269,231"

A warrant is a time-limited financial contract that gives its holder the right to buy a company's shares at a set price before a specified date, like a coupon that lets you purchase stock at a fixed discount for a limited time. It matters to investors because warrants offer leveraged exposure to a stock’s upside and can dilute existing shareholders if exercised, so they affect potential gains and the company’s outstanding share count.

registered direct financing financial

"disputed compensation in connection with the registered direct financing the Company"

A registered direct financing is when a company sells newly registered securities directly to a limited number of investors under an existing registration, skipping the broad public marketing of a typical offering; think of it as putting approved items on a store shelf and arranging a private sale to select buyers. Investors care because it can quickly raise cash while creating new shares or debt that may dilute existing ownership, affect the share price and change the company’s financial runway.

prospectus supplement regulatory

"designated news release" for the purposes of the Company's amended and restated prospectus supplement dated"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

subordinate voting shares financial

"for up to an aggregate of 269,231 of the Company's subordinate voting shares at a price"

Subordinate voting shares are a type of company stock that typically carry fewer voting rights than regular shares, meaning holders have less influence over company decisions. They are often used to raise capital while allowing founders or main shareholders to retain control. For investors, understanding the difference helps assess their level of influence in company decisions and the potential risks or benefits of holding different types of shares.

AI-generated analysis. Not financial advice.

This news release constitutes a "designated news release" for the purposes of the Company's amended and restated prospectus supplement dated November 18, 2025, to its short form base shelf prospectus dated May 15, 2025.

MIAMI, FL / ACCESS Newswire / January 9, 2026 / Digi Power X Inc. ("Digi Power X" or the "Company") (Nasdaq:DGXX)(TSXV:DGX), an innovative energy infrastructure company, today announced that it has entered into a settlement agreement (the "Agreement") with H.C. Wainwright & Co., LLC ("Wainwright") related to certain disputed compensation in connection with the registered direct financing the Company closed on July 23, 2025.

Pursuant to the Agreement, Digi Power X agreed to pay a cash fee of US$840,000.12 and to issue to Wainwright a warrant exercisable for up to an aggregate of 269,231 of the Company's subordinate voting shares at a price of US$2.85 per share for a period of five years from the date of issuance. All securities to be issued pursuant to the Agreement will be subject to the approval of the TSX Venture Exchange.

About Digi Power X

Digi Power X is an innovative energy infrastructure company that develops Tier III-certified modular AI data centers and drives the expansion of sustainable energy assets.

For further information, please contact:

Michel Amar, Chief Executive Officer
Digi Power X Inc.
www.digipowerx.com
Investor Relations
T: 888-474-9222
Email: IR@digihostpower.com

Cautionary Statement

Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Except for the statements of historical fact, this news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. Forward-looking information in this news release includes information about the Company's expectations concerning the potential further improvements to profitability and efficiency across the Company's operations, including, as a result of the Company's expansion efforts, potential for the Company's long-term growth and clean energy strategy, and the business goals and objectives of the Company. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: delivery of equipment and implementation of systems may not occur on the timelines anticipated by the Company or at all; future capital needs and uncertainty of additional financing; share dilution resulting from equity issuances; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; effects on Bitcoin prices as a result of the most recent Bitcoin halving; development of additional facilities and installation of infrastructure to expand operations may not be completed on the timelines anticipated by the Company, or at all; ability to access additional power from the local power grid and realize the potential of the clean energy strategy on terms which are economic or at all; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; development of additional facilities to expand operations may not be completed on the timelines anticipated by the Company; ability to access additional power from the local power grid; an increase in natural gas prices may negatively affect the profitability of the Company's power plant; the digital currency market; the Company's ability to successfully mine digital currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company's filings at www.sedarplus.ca and www.SEC.gov/EDGAR. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about, among other things, the current profitability in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company's assets going forward; the Company's ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the negative impact of regulatory changes in the energy regimes in the jurisdictions in which the Company operates; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainties therein. The Company undertakes no obligation to revise or update any forward-looking information other than as required by applicable law.

SOURCE: Digi Power X Inc.

View the original press release on ACCESS Newswire

FAQ

What did Digi Power X (DGXX) agree to pay in the settlement announced January 9, 2026?

Digi Power X agreed to pay a cash fee of US$840,000.12 as part of the settlement.

How many warrants will H.C. Wainwright receive under the Digi Power X (DGXX) settlement?

Wainwright will receive a warrant exercisable for up to 269,231 subordinate voting shares.

What is the exercise price and term of the warrants in the DGXX settlement?

The warrants have an exercise price of US$2.85 per share and expire five years from issuance.

Why did Digi Power X (DGXX) enter the settlement with H.C. Wainwright?

The company entered the settlement to resolve disputed compensation related to a registered direct financing closed July 23, 2025.

Do the securities from the Digi Power X settlement require approval?

Yes. All securities issuable under the agreement are subject to TSX Venture Exchange approval.