Digi Power X Provides Letter to Shareholders on 2025 Highlights and Strategic Update

Rhea-AI Summary

Digi Power X (Nasdaq: DGXX) issued a shareholder letter outlining a 2025 strategic pivot from digital-asset mining to power-backed AI infrastructure and Tier-3 data-center services.

Key 2025 developments: completion of the ARMS 200 Tier-3 modular AI pod with deployment planned for Q1 2026; utility and design patent filings for ARMS; secured power positions across the U.S. (North Tonawanda 123 MW, Buffalo 18.7 MW, Alabama 70 MW, North Carolina 200 MW available); NeoCloudz GPU-as-a-Service progress; CTO hire; year-to-date capex of $13.5M, cash and liquidity exceeding $100M, and no long-term debt.

Positive

• ARMS 200 build completed; deployment planned Q1 2026
• Power secured: 123 MW North Tonawanda
• Power secured: 18.7 MW Buffalo
• Power secured: 70 MW Alabama
• 200 MW North Carolina available for development
• Cash and liquidity exceeding $100 million
• No long-term debt
• Year-to-date capital expenditures of $13.5 million

Negative

• Advanced customer negotiations are not guaranteed contracts
• 2026 50 MW build target conditional on demand and equipment
• ARMS commercialization depends on converting pipeline into revenue

Key Figures

North Tonawanda power 123 MW Secured capacity in Upstate New York

Buffalo power 18.7 MW Secured capacity in Buffalo, New York

Alabama power 70 MW Secured for Tier-3 AI data-center site in Alabama

North Carolina pipeline 200 MW Available for future development targeting 2028–2029

ARMS 200 scalability 1 MW Modular scalability starting at 1 MW for ARMS 200

Cash & liquidity Exceeding $100 million Expected year-end 2025 cash and liquidity position

Capital expenditures Approximately $13.5 million Year-to-date 2025 CapEx on infrastructure and AI readiness

2026 AI IT load goal Up to 50 MW Target AI-focused IT load placed into service in 2026

Market Reality Check

$2.79 Last Close

Volume Volume 2,732,413 is below the 4,378,097 20-day average, suggesting limited positioning change pre-release. low

Technical Shares at $2.75 are trading above the 200-day MA of $2.61, but sit 59.44% below the $6.78 52-week high.

Peers on Argus 2 Up

DGXX was down 3.51% while peers were mixed: STEM +0.92%, TAC , PAM +0.49%, VGAS -6.25%, SAFX -1.55%. Momentum scanner only flagged NXXT and SUUN moving up, indicating stock-specific dynamics rather than a broad utilities move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	Leadership change	Positive	+7.8%	Appointment of experienced CTO to lead ARMS 200 and NeoCloudz roadmap.
Dec 03	AI infra deployment	Positive	-4.1%	ARMS 200 deployment and first NVIDIA B200 GPU cluster in Alabama.
Nov 18	ATM program update	Neutral	+7.8%	Amended prospectus for existing ATM equity program under US$250M base shelf.
Nov 13	Earnings and AI plan	Positive	-10.3%	Q3 2025 positive net earnings and detailed 2026–2027 AI power targets.
Nov 03	Balance sheet update	Positive	+4.3%	Stronger liquidity and crypto holdings to fund AI infrastructure rollout.

Pattern Detected

Recent AI and infrastructure updates have produced mixed reactions, with roughly equal instances of aligned and divergent price moves versus generally positive news.

Recent Company History

Over the last few months, Digi Power X has focused on balance sheet strength and its AI infrastructure pivot. On Nov 3, it highlighted increased cash and crypto plus staged MW rollouts. On Nov 13, it reported positive Q3 2025 earnings and higher energy sales. Subsequent filings on Nov 18 detailed an updated ATM program, followed by ARMS 200 and B200 GPU deployment news on Dec 3 and a CTO appointment on Dec 8. Today’s shareholder letter consolidates these themes and adds 2026 deployment goals.

Market Pulse Summary

This announcement outlines Digi Power X’s 2025 transition from digital asset mining toward AI-focused, Tier-3 modular data centers. The letter emphasizes secured power blocks of 123 MW, 70 MW and a 200 MW development pipeline, plus a planned 50 MW AI IT load in 2026. A projected cash and liquidity position above $100M and modest $13.5M in 2025 CapEx frame funding capacity. Execution on ARMS 200 deployment and customer contracts remains a central metric to track.

Key Terms

modular data-center technical

"strategic pivot toward AI-ready, modular data-center infrastructure, anchored by"

A modular data-center is a data center built from prefabricated, self-contained sections that can be shipped, stacked or connected to expand computing capacity quickly. For investors, it matters because this approach cuts upfront construction time and cost, lets operators scale capacity like adding lego blocks as demand grows, and can improve returns by bringing revenue-generating capacity online faster and with lower capital risk.

ai-ready modular solution technical

"our proprietary ARMS (AI-Ready Modular Solution) platform, designed to rapidly deploy"

A ai-ready modular solution is a technology setup built from interchangeable parts that are prepared to plug in and run artificial intelligence features quickly, like a set of Lego blocks that snap together. For investors, it matters because it lowers the time, cost and risk of adding AI capabilities—making upgrades, scaling, or swapping components easier and helping a business move faster to generate revenue or cut expenses.

gpu-as-a-service technical

"NeoCloudz™️, its GPU-as-a-Service platform offering flexible, high-performance compute"

GPU-as-a-Service is a pay-as-you-go model that lets businesses rent powerful graphics processing units (GPUs) over the internet instead of buying the hardware outright. It matters to investors because it lowers upfront costs and speeds time-to-market for companies using AI, data analysis, or 3D rendering—similar to renting a high-performance car for a specific trip rather than owning one—and can make firms more flexible, scalable, and capital-efficient.

liquid-cooling technical

"Support for next-generation AI GPUs and liquid-cooling solutions;Accelerated deployment"

Liquid-cooling is a method of removing heat from electronic equipment, batteries or machinery by circulating a liquid (like water or a special coolant) that absorbs heat and carries it away, similar to how a car radiator keeps an engine from overheating. For investors, it matters because more effective cooling can improve performance, energy efficiency, reliability and lifetime of high‑value assets such as data centers, electric vehicles and industrial systems, which affects operating costs, maintenance needs and resale value.

dual-path power redundancy technical

"Tier-3 architecture with dual-path power redundancy;Modular scalability starting"

Dual-path power redundancy is a design where critical equipment is fed by two separate and independent electrical routes so that if one feed, breaker or supply fails, the other can keep systems running without interruption. For investors, this reduces the risk of costly downtime, data loss or regulatory noncompliance by improving operational reliability and business continuity—similar to having two independent roads to reach the same factory so deliveries keep arriving even if one road is blocked.

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, Dec. 24, 2025 (GLOBE NEWSWIRE) -- Digi Power X Inc. (“Digi Power X” or the “Company”) (Nasdaq: DGXX / TSXV: DGX), an innovative energy infrastructure company, is pleased to announce the release of the following letter to its shareholders by Michel Amar, Chairman and Chief Executive Officer.

Dear Fellow Shareholders,

2025 was a transformational year for Digi Power X, as we continue executing on our strategy to evolve from a solely digital asset mining-focused business into a power-backed AI infrastructure and Tier-3 data-center platform positioned to serve the accelerating global demand for AI compute, while still maintaining our digital asset mining business.

Strategic Transformation

During the year, Digi Power X executed a deliberate strategic pivot toward AI-ready, modular data-center infrastructure, anchored by our wholly-owned subsidiary, US Data Centers Inc. (“US Data Centers”). This transition reflects our belief that long-term value creation in the AI economy is driven by ownership of secured power, scalable infrastructure and flexible compute platforms.

Central to this strategy is our proprietary ARMS (AI-Ready Modular Solution) platform, designed to rapidly deploy Tier-3 data-center capacity optimized for high-density AI and enterprise workloads.

ARMS 200 Deployment

In 2025, US Data Centers completed the design and build-out of ARMS 200, our flagship modular Tier-3 AI data-center pod. The ARMS 200 is currently being set up and is expected to begin deployment in the first quarter of 2026 at our Alabama facility, representing a transition from development to revenue-generating infrastructure.

Key attributes of the ARMS 200 include:

• Tier-3 architecture with dual-path power redundancy;
• Modular scalability starting at 1 MW;
• Support for next-generation AI GPUs and liquid-cooling solutions;
• Accelerated deployment timelines

During 2025, we also made utility and design patent filings covering both the ARMS branding and its modular architecture.

Power Portfolio & Infrastructure

Digi Power X significantly expanded and de-risked its power footprint in 2025, establishing a strong foundation for AI data-center growth.

Upstate New York

• 123 MW secured in North Tonawanda
• 18.7 MW secured in Buffalo

Alabama

• 70 MW secured, with continued development of a Tier-3 AI data-center site featuring dual-path power and GPU cluster readiness
  

North Carolina

• 200 MW available for future development, with planning underway for phased AI data-center deployment targeted for 2028-2029, subject to customary approvals, infrastructure buildout and market conditions
  

These assets provide Digi Power X with substantial, grid-connected and scalable power across multiple U.S. regions.

AI Compute, NeoCloudz™️ and Customer Pipeline

Throughout 2025, Digi Power X advanced its AI compute roadmap, including planning and deployment for next-generation AI GPUs (B200-class). In parallel, the Company continued development of NeoCloudz™️, its GPU-as-a-Service platform offering flexible, high-performance compute access for enterprises and AI-focused customers.

The Company is currently in advanced negotiations with customers for 2026, covering both:

• AI data-center colocation; and
• GPU-as-a-Service offerings via NeoCloudz™️

These discussions are intended to support contracted utilization as ARMS 200 and future deployments come online. Although discussions are in advanced stages, there is no guarantee that any such customer contracts will be finalized.

Strengthened Leadership

During the year, Digi Power X strengthened its executive team with the appointment of Jagan Jeyapaul as Chief Technology Officer, joining the Company from Oracle. Mr. Jeyapaul brings deep experience in enterprise infrastructure, hyperscale systems and mission-critical platform operations.

As CTO, Mr. Jeyapaul will lead:

• Operational deployment of ARMS 200;
• Customer hardware and software integration; and
• Technical architecture and scalability of the NeoCloudz™️ platform
  

Financial Strength

Digi Power X expects to end 2025 with a strong balance sheet comprised of:

• Cash and liquidity position exceeding $100 million;
• No long-term debt; and
• Year-to-date capital expenditures of approximately $13.5 million, focused on infrastructure, AI readiness and platform development
  

2026 Outlook and Guidance

Looking ahead, Digi Power X is focused on execution and monetization:

• ARMS 200 expected to begin deployment in the first quarter of 2026;
• Conversion of advanced customer negotiations into contracted revenue;
• The Company’s goal is to build and place into service up to 50 MW of AI-focused IT load during 2026, subject to customer demand, equipment availability and customary execution factors;
• Continued expansion of the ARMS product family and NeoCloudz™️ platform

We believe the foundation established in 2025 will help position Digi Power X for sustainable revenue growth, margin expansion and long-term shareholder value creation.

As we close out 2025, I want to thank our shareholders, employees, partners and customers for their continued trust and support. We have built a strong foundation this year, securing power, deploying differentiated AI infrastructure and strengthening our leadership team. I wish everyone a happy holiday season and look forward to continuing to execute on our plan in 2026.

Sincerely,

Michel Amar
Chief Executive Officer
Digi Power X Inc.

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.

FAQ

When will Digi Power X (DGXX) begin ARMS 200 deployment?

ARMS 200 is expected to begin deployment in Q1 2026.

How much power has Digi Power X (DGXX) secured for AI data centers?

Secured positions include 123 MW North Tonawanda, 18.7 MW Buffalo, and 70 MW Alabama, plus 200 MW available in North Carolina.

What is Digi Power X's (DGXX) 2026 capacity build target?

The company aims to build and place into service up to 50 MW of AI IT load during 2026, subject to conditions.

What is NeoCloudz and how does it affect DGXX revenue plans?

NeoCloudz is a GPU-as-a-Service platform intended to provide flexible GPU compute for customers and support contracted utilization as deployments come online.

What are Digi Power X's (DGXX) year-end financial positions cited for 2025?

The company expects cash and liquidity to exceed $100 million, reports $13.5 million year-to-date capex, and states no long-term debt.

Did Digi Power X (DGXX) make any intellectual property filings in 2025?

Yes, the company filed utility and design patent applications covering ARMS branding and modular architecture.