Digi Power X Inc. Q3 2026 Earnings Call Summary Moby Intelligence Fri, November 13, 2026 at 4:44 PM EST 4 min read NVDA -2.58% DGXX +2.26% BTC-USD -4.39% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Revenue increased 85% sequentially as the company successfully transitioned from a legacy Bitcoin mining operation to an AI infrastructure provider, with AI now representing 46% of total revenue.
The launch of the NeoCloudz Token Factory in Berlin allows the company to capture 85%-90% margins by selling AI inference directly to customers rather than renting compute at wholesale prices.
Management attributes the rapid seven-month execution of the Columbiana Phase I facility to a 'full-stack' ownership model that controls everything from power generation to data center design.
Strategic financial discipline is being maintained by prioritizing project-level debt and customer prepayments over equity issuance to minimize shareholder dilution during rapid expansion.
The decision to keep US Data Centers Inc. as a separate capital-raising entity allows the company to participate in modular AI and robotics growth without diverting core capital from infrastructure projects.
Operational efficiency improved significantly during the quarter, with management reducing SG&A expenses by 30% compared to the previous quarter through a disciplined entrepreneurial approach.
Management targets an annualized revenue run rate of $250 million to $300 million by the end of Q3 2027, supported by existing contracts and pending customer negotiations.
Phase I of the Columbiana AI campus is on schedule for tenant access on December 15, 2026, with contractual billing expected to commence in January 2027.
The 2027 capital plan of approximately $350 million will focus on completing Columbiana Phase II and expanding AI inference capacity to 10 MW.
Long-term expansion plans include converting New York power assets to AI data centers in late 2027 and developing 150 MW of capacity in North Carolina by 2030.
The company expects to close a $200 million project-level debt facility syndicated by Goldman Sachs in Q4 2026 to fund the completion of the 40 MW Columbiana project.
The 10-year take-or-pay agreement with Cerebras carries a total potential contract value of approximately $2.5 billion if all extension options are exercised.
Management successfully renegotiated debt financing terms through Goldman Sachs, achieving single-digit interest rates and saving approximately 2 points compared to previous offers.
The company holds approximately $119.6 million in cash, equivalents, and digital currencies, providing a foundation for the next phase of infrastructure deployment.
Management is leveraging its execution credibility to secure significantly higher customer deposits, ranging from 30% to 70% on new contracts.
This 'customer-funded' model is designed to finance growth while avoiding the equity market volatility that has impacted the stock price.
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The 85%-90% margins are sustainable because the company owns the power generation and the full technology stack, capturing the value of every token served.
Management views power as the primary bottleneck in the industry, making their permitted, connected power assets increasingly valuable for high-margin inference.
Management estimates the market value of finished liquid-cooled data centers at $30 million to $35 million per megawatt based on recent industry transactions.
Applying this to the 40 MW Columbiana project suggests a potential net equity value of approximately $1.2 billion upon completion.
The 48% ownership allows Digi Power X to benefit from modular AI and robotics innovation without the risk of allocating core capital to new ventures.
USDC is raising capital independently to avoid diluting Digi Power X shareholders while developing automated deployment systems for 2027-2028.
Management expressed high confidence in Cerebras, noting their strong cash position and 55% year-over-year growth as a key alternative to NVIDIA.
The relationship is bolstered by the high switching costs for tenants in specialized liquid-cooled facilities and the scarcity of available power shells.
