Digi Power X Posts Positive Cash Flow, Sees 163% Jump in Colocation Revenue Amid AI Pivot

Digi Power X reports positive cash flow and a 163% YoY increase in colocation revenue for H1, driven by its business model that avoids capital expenditure on miners. The company is pivoting its Alabama site into an AI-focused facility with the rollout of the ARMS 200 modular AI system expected to begin operations by late 2025 or early 2026. Digi Power X is cash flow positive with $30 million in cash and no debt.

Digi Power X Inc. (NASDAQ: DGXX) has reported significant financial improvements for the first half of 2025, marking a transformational period for the company. The removal of its 'going concern' risk indicates that auditors no longer have substantial doubt about the company's ability to continue operations, signaling a reduced bankruptcy risk. Key financial highlights include a 163% year-over-year increase in colocation revenue to $9.57 million for H1 2025, and 127% growth in energy sales to $5.7 million in Q2 [1].

Digi Power X achieved these financial turnarounds through several strategic maneuvers. The company successfully raised $12.9 million through private placement and warrant exercises in Q2 2025, eliminated all long-term debt, and reduced accounts payable by $3.6 million. This financial restructuring has positioned Digi Power X to pursue its strategic pivot toward AI infrastructure.

The company's liquidity position is robust, with $30 million in cash, Bitcoin, and Ethereum holdings. This substantial liquidity provides a strong runway for executing its AI infrastructure strategy without immediate financing pressure. Operational improvements are evident in the 163% year-over-year increase in colocation revenue and 127% growth in energy sales, demonstrating effective cost management.

Digi Power X is currently managing 100MW of power capacity and plans to expand to 200MW, while advancing discussions with multiple AI customers for long-term infrastructure contracts. The company's Alabama site is being transformed into an AI-focused facility with the rollout of the ARMS 200 modular AI system expected to begin operations by late 2025 or early 2026 [1].

Looking ahead, Digi Power X expects continued strength in colocation and AI infrastructure deployments in the second half of 2025, supported by rising demand from enterprise AI, fintech, and data-intensive sectors. Strong partnerships and enhanced liquidity position the company to pursue larger-scale projects, including planned expansions in Alabama and North Carolina.

References:
[1] https://www.stocktitan.net/news/DGHI/digi-power-x-reports-solid-mid-year-financial-position-removal-of-pilfw9azi5lw.html