DGXX Soars 24% Amid AI Inflection Point—What’s Driving the Surge?

• Digi Power (DGXX) spikes 24% to $3.10, breaching $3.12 intraday high
• Shares leap despite negative PE ratio (-16.69) and $2.52 open
• Recent Bitcoin production reports and AI conference participation fuel momentum
• Sector leader EQIX climbs 0.48%, but DGXX outperforms on speculative catalysts

Digi Power’s stock erupted Thursday as investors priced in its AI-infrastructure positioning and recent production updates, surging past $3.10—its highest since early 2025. The rally defies its loss-making fundamentals, instead reflecting speculative bets on its data center growth narrative amid a sector-wide regulatory push for power infrastructure.

AI & Tech Conference Momentum and Production Gains Ignite DGXX’s Rally
The surge stems directly from two catalysts: Digi Power’s participation in the AI & Technology Virtual Investor Conference (July 10) and its May Bitcoin production report. The company’s Q2 production data, though unaudited, signaled operational resilience in crypto-mining infrastructure—a key revenue pillar. Additionally, its presentation at the conference amplified visibility for its data center projects, coinciding with bipartisan U.S. legislative pushes to fast-track data center permitting. This dual narrative—technical execution and regulatory tailwinds—catalyzed the 24% intraday explosion.

Data Center Sector Mixed as EQIX Advances—DGXX Outperforms on AI Play
While sector leader Equinix (EQIX) rose just 0.48%, Digi Power’s speculative premium reflects its narrower focus on AI-driven infrastructure. The broader data center space faces headwinds: rising power costs, regulatory scrutiny over grid strain, and mixed earnings from peers like Talen Energy. DGXX’s smaller scale and Bitcoin production angle create a high-risk/high-reward contrast to EQIX’s diversified portfolio, making it a proxy for pure-play AI infrastructure bets.

Technical Setup and Leverage Plays: DGXX’s Bull Run Faces Key Resistance
• MACD: 0.167 vs Signal Line 0.236 (Bearish Histogram: -0.069)
• RSI: 47.76 (Neutral, below 50)
• Bollinger Bands: Current price ($3.10) exceeds Upper Band ($3.03), signaling overextension
• Support/Resistance: Near-term resistance at $3.12 (intraday high), support at $2.56–$2.59 (30-day range)

Bulls face a critical test at $3.12; a close above could trigger a sprint toward $3.50 (2024 high). However, the MACD divergence warns of exhaustion. Aggressive traders might deploy DGXX calls if the breakout holds, but liquidity constraints (zero options contracts listed) limit hedging. Instead, consider leveraged ETFs like the Global X Cloud Computing ETF (CLOU) (+2.3% YTD) for sector exposure. For now, wait for a pullback to $2.80–$2.90 before initiating longs—avoid chasing this overextended move.

Options Note: No tradable contracts available. Monitor upcoming expirations for volatility opportunities.

Backtest Digi Power Stock Performance
The backtest of DGXX's performance following a 24% intraday surge shows favorable short-to-medium-term gains, with win rates and returns increasing across 3, 10, and 30 days. The 3-Day win rate is 42.50%, the 10-Day win rate is 42.50%, and the 30-Day win rate is 35.00%. Returns are 0.85% over 3 days, 1.24% over 10 days, and 3.89% over 30 days, with a maximum return of 4.71% on day 57.

Watch for Sustained Momentum or Regulatory Shifts—DGXX’s Next Move
Digi Power’s rally hinges on whether its AI/data center narrative translates into tangible revenue growth. Bulls must defend $2.56 support while targeting EQIX’s relative stability (up 0.48%) as a sector benchmark. Investors should prioritize patience: a breakdown below $2.60 signals a return to pre-rally trends, while sustained trading above $3.12 could catalyze a multi-month uptrend. Action Item: Track legislative progress on data center permitting and DGXX’s Q3 production reports—these will define the next phase.