Exhibit 99.1
DIGI
POWER X INC.
Nasdaq:
DGXX | Cboe Canada: DGX
A
Vertically Integrated AI Infrastructure Company
Digi
Power X Reports Second Quarter 2026 Financial Results and Provides Operational Update and 2027 Outlook
Highlights
$1.1 Billion of Contracted AI Infrastructure Revenue, First AI Compute Revenue, Positive Adjusted EBITDA and Strong Balance Sheet
MIAMI,
FL – August 14, 2026 – Digi Power X Inc. (Nasdaq: DGXX / Cboe Canada: DGX) (“Digi Power X” or the “Company”),
an AI data center infrastructure operator, today reported its financial and operating results for the second quarter ended June 30, 2026
(all amounts in U.S. dollars, unless otherwise indicated). The Company’s quarterly report on Form 10-Q, which includes unaudited
consolidated financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended
June 30, 2026, has been filed and made accessible under the Company’s continuous disclosure profile on SEDAR+ at www.sedarplus.ca
and is also available on EDGAR at www.sec.gov/edgar.
Second
Quarter 2026 Highlights
All
amounts in U.S. dollars (millions)
| ● | Revenue
of approximately $6.6 million for the second quarter of 2026; |
| ● | Net
loss of approximately $14.4 million for Q2 2026; |
| ● | Generated
the Company’s first AI compute revenue, with approximately $1.1 million of GPU bare-metal
rental revenue from approximately five weeks of operations; |
| ● | Approximately
$30 million invested in GPU infrastructure, representing approximately 0.6 MW of deployed
AI compute capacity; |
| ● | $1.1
billion of contracted AI data center future revenue, with an option to expand the relationship
that could increase the total potential contract value to approximately $2.5 billion; |
| ● | $142.4
million of cash and cash equivalents as at June 30, 2026; |
| ● | Combined
total of $127.5 million of property, plant and equipment, net, and long-term amounts assets; |
| ● | $279.6
million of total assets and $265.0 million of shareholders’ equity as at June 30, 2026; |
| ● | Positive
Adjusted EBITDA1 of approximately $3.3 million, compared with approximately $0.1
million in the prior-year period. |
For
Q2 2026, the Company reported revenue of approximately $6.6 million, including:
| ● | approximately
$3.6 million from colocation services and legacy mining; |
| ● | $1.9
million from energy sales; and |
| ● | $1.1
million from GPU rental. |
| 1 | Adjusted
EBITDA is a non-GAAP financial measure presented as a supplement to GAAP results. See “Adjusted EBITDA—GAAP Reconciliation”
and “Non-GAAP Financial Measures” below.” |
CEO
Commentary
“Q2 represents an important inflection point in Digi Power X’s transformation into an AI infrastructure company. We generated our first AI compute revenue, with approximately $1.1 million generated from approximately five weeks of GPU bare-metal operations. Our initial approximately $30 million investment in GPU infrastructure represents approximately 0.6 MW of deployed capacity, demonstrating what we believe is the significant revenue density and scalability of this business.
At the same time, we have approximately $1.1 billion of contracted AI data center future revenue, with an opportunity to increase the total potential contract value to approximately $2.5 billion. With approximately $150 million of cash today, no debt and a growing portfolio of AI infrastructure and power assets, we believe we have established a strong financial foundation from which to execute our growth strategy.
Our priority remains execution - delivering Alabama on schedule, scaling our GPU compute platform and developing the power-secured sites that can drive our growth in 2027 and beyond. The Company is pleased to announce that it also in advanced discussions with lenders to finalize debt financing for the Alabama data center and has engaged Goldman Sachs to assist in syndicating the financing.”
— Michel Amar, Chairman & Chief Executive Officer, Digi Power X Inc.
Strong
Balance Sheet and Capital Position
Amounts
in U.S. dollars (millions)
| ● | The
Company’s cash and cash equivalents position subsequently increased to approximately $150
million as of August 14, 2026; |
| ● | Approximately
$110 million of year-to-date capital investment and equipment deposits. |
Operational
Updates
Alabama
– Tier III AI Data Center
Construction
of Digi Power X’s purpose-built Tier III AI data center in Columbiana, Alabama continues to progress on schedule. The Company expects
Phase 1, representing 15 MW of IT load, to be delivered in December 2026, followed by Phase 2, representing an additional 25 MW, in March
2027, for up to 40 MW of IT load.
The
Company’s 10-year AI data center agreement represents approximately $1.1 billion of contracted revenue, with an option to expand the
relationship that could increase the total potential contract value to approximately $2.5 billion.
NeoCloudz
- GPU Bare-Metal AI Compute
Digi
Power X has invested approximately $30 million in GPU infrastructure, representing approximately 0.6 MW of deployed AI compute capacity.
The platform generated approximately $1.1 million of revenue during Q2 2026 from approximately five weeks of operations, marking Digi
Power X’s first AI compute revenue.
The
Company’s B300 GPU bare-metal infrastructure has operated at 100% uptime since May 2026. Based on the performance of the initial deployment
and current market opportunities, Digi Power X plans to expand its GPU bare-metal platform by approximately 10 MW during 2027. The Company
is also actively evaluating additional power sites to support future expansion.
President
Commentary
“In
this business, you are underwritten on what you have delivered, not what you have announced,” said Alec Amar, Co-Founder and President.
“Columbiana is our flagship and delivering it on schedule establishes the operating track record that hyperscale customers and project
lenders require. Everything in our development pipeline is easier the day Phase 1 energizes.”
— Alec Amar, President, Digi Power X Inc.
New
York - AI Conversion
Digi
Power X continues to prepare its New York infrastructure assets for conversion to AI data center operations. The Company is targeting
the transition of these sites beginning in Q3 and Q4 2027.
The
Company has received reassurance regarding the grandfathered status of its existing operations and continues to advance engineering and
development planning for the AI transition.
North
Carolina - Future AI Campus
Digi
Power X owns approximately 40 acres adjacent to one of North Carolina’s largest electrical switchyards and is advancing development planning
for a large-scale AI data center campus.
The
current development plan contemplates approximately 75 MW in 2029 and an additional 75 MW in 2030. The North Carolina site represents
an important component of Digi Power X’s longer-term strategy to develop a geographically diversified portfolio of power-secured AI infrastructure
assets.
West
Virginia - 1.3 GW Power Opportunity
The
Company continues to assess opportunities associated with its previously announced LOI involving a 1.3 GW power generation asset in West
Virginia. Digi Power X is evaluating potential structures for participating in the asset and how its available power could support the
Company’s longer-term AI infrastructure strategy.
Silicon
Valley Office
The
Company is pleased to announce that it will be opening its Silicon Valley office in Q3 2026 to house its dedicated engineering team for
its GPU-as-a-Service business.
CTO
Commentary
“The
platform we built in Alabama demonstrated modular AI data centers and AI Factories at scale. Our Silicon Valley Lab will build on that
foundation to advance GPU as a Service and power the next generation of AI Inference Clouds. We are bringing together top talent in MLOps,
AI kernels, and GPU networking to build it.”
— Jagan Jeyapaul, Chief Technology Officer, Digi Power X Inc.
US
Data Centers Inc.
During
Q2 2026, US Data Centers Inc., a subsidiary of the Company (“USDC”), raised outside capital at a $125 million pre-money valuation.
Digi Power X believes its approximate 48% ownership interest in USDC provides shareholders with additional exposure to the potential
growth and commercialization of USDC’s modular AI data center platform.
2027
Outlook
Based
on its contracted business, available power and planned AI infrastructure deployments, the Company is targeting an annualized revenue
run-rate of approximately $250 million to $300 million by Q3 2027. The Company’s 2027 outlook consists of two principal components:
Contracted
Revenue
Based
on existing customer contracts and scheduled deployments, Digi Power X expects to reach approximately $140 million of annualized contracted
revenue run-rate during 2027.
The
Company’s existing AI data center agreement represents approximately $1.1 billion of total contracted revenue, with an option to expand
the relationship that could increase the total potential contract value to approximately $2.5 billion.
Expected
Revenue Based on Available Power
In
addition to its contracted revenue base, Digi Power X expects to have additional power and infrastructure available during 2027 to support
further AI deployments. The Company is targeting approximately 40 MW of additional colocation capacity and approximately 10 MW of additional
GPU bare-metal compute capacity.
Based
on its available power, planned capacity and current market opportunities, management expects these additional deployments to provide
the incremental revenue required to achieve the Company’s targeted $250 million to $300 million annualized revenue run-rate by Q3 2027,
subject to customer contracting, deployment schedules and utilization.
The
Company expects the transition toward this higher revenue profile to become increasingly visible during the second half of 2026, with
Q3 2026 revenue expected to increase significantly compared with Q2 2026. These targets are subject to execution, customer ramp, financing
availability and the other factors described under “Forward-Looking Statements” below.
Conference
Call Details
The
Company will host a conference call to discuss its second quarter 2026 results on August 14, 2026 at 8:30 AM ET. The conference call
can be accessed by dialing the numbers below, or guests can utilize the Call Me link.
1-877-407-9039
or 1-201-689-8470.
Call
Me: https://callme.viavid.com/viavid/?callme=true&passcode=13750233&h=true&info=company&r=true&B=6
A
live webcast and replay will be available at investors.digipowerx.com.
Adjusted
EBITDA — GAAP Reconciliation
The
following table reconciles GAAP net loss to EBITDA and Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure presented as
a supplement to GAAP results. See “Non-GAAP Financial Measures” below.
Amounts
in U.S. dollars (millions)
| Line Item | |
Q2 2026 ($M) | |
| Net Loss (GAAP) | |
$ | (14.4 | ) |
| Add: Depreciation & Amortization | |
| 4.1 | |
| EBITDA | |
$ | (10.2 | ) |
| Add: Share-based Compensation | |
| 5.8 | |
| Add: Crypto Revaluation Loss | |
| 2.8 | |
| Add: Warrant FV Loss | |
| 5.0 | |
| Adjusted EBITDA — Q2 2026 | |
$ | 3.3 | |
EBITDA
and Adjusted EBITDA exclude share-based compensation, digital currency revaluation, changes in fair value of financial instruments, and
capitalized AI infrastructure payroll costs. These non-GAAP measures are not substitutes for GAAP results.
Non-GAAP
Financial Measures
Adjusted
EBITDA is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation
and amortization, and further adjusted to exclude share-based compensation, digital currency revaluation, changes in fair value of financial
instruments (including warrant liabilities), gain/loss on settlement of debt, and gains or losses on sale of property and equipment.
Management believes that providing this non-GAAP financial measure that excludes these items allows for meaningful comparisons between
the Company’s core business operating results and those of other companies and provides the Company with an important tool for financial
and operational decision making and for evaluating its own core business operating results over different periods of time. In addition
to management’s internal use of non-GAAP Adjusted EBITDA, management believes that Adjusted EBITDA is also useful to investors and analysts
in comparing our performance across reporting periods on a consistent basis. The Company’s Adjusted EBITDA measure may not be directly
comparable to similar measures provided by other companies in our industry, as other companies in our industry may calculate non-GAAP
financial results differently. The Company’s Adjusted EBITDA is not a measurement of financial performance under GAAP and should not
be considered as a substitute for, or superior to, net loss or any other measure of performance calculated in accordance with GAAP.
About
Digi Power X
Digi
Power X is an AI infrastructure company, operating a vertically integrated portfolio of power assets and data center capacity across
Alabama, New York, and North Carolina. The Company’s NeoCloudz platform delivers GPU-as-a-Service on dedicated, bare metal NVIDIA infrastructure.
For more information, visit www.digipowerx.com.
Investor
Relations
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. Cboe Canada does not accept responsibility for the adequacy or
accuracy of this release.
Cautionary
Note and 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 the statements under “2027 Outlook” and other statements regarding goals, expectations
and targets for the business of Digi Power X, including through USDC. In some cases, you can identify forward-looking statements by terms
such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,”
“intends,” “targets,” “goals,” “projects,” “contemplates,” “believes,”
“estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of
these terms or other similar expressions. The forward-looking information is subject to a variety of known and unknown risks, uncertainties
and other important factors that may cause our actual results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the Company’s
ability to maintain and obtain new customers; that any additional commercial agreements under discussion will be entered into, or that
the West Virginia or upstate New York opportunities will be realized; the Company’s ability to fulfill its obligations pursuant
to its colocation agreements; counterparty performance; the Company’s ability to execute its evolving business model and strategy,
including as it relates to its expansion into the data center market; future capital needs and uncertainty regarding the Company’s
and USDC’s ability to raise additional capital or obtain financing; Phase 2 deployment of the Company’s purpose-built AI
data center campus is conditioned on the Company securing adequate financing, and there can be no assurance that financing will be completed
on the terms contemplated or at all; costs associated with the development, manufacturing and deployment of AI infrastructure; risks
relating to construction and equipment delivery; delivery of deployment of equipment may not occur on the timelines anticipated by the
Company, or at all; global demand for AI computing infrastructure; further improvements to profitability and efficiency may not be realized;
permitting and interconnection, regulatory matters, and general economic and market conditions; and other related risks, some of which
are 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 in the Company’s annual, quarterly and current reports filed with the SEC. 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. 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.
