Digi Power X Q3 Revenue Jumps 85%, AI Sales Top 400%

Digi Power X Inc. reported third-quarter 2026 revenue of $12.25 million on 13 November 2026, an 85% increase over the prior fiscal quarter and a 50% rise year over year, with AI revenue of $5.66 million climbing more than 400% from Q2 and representing 46% of the total. The Nasdaq-listed AI data center operator ended the quarter with $119.6 million in cash, cash equivalents and digital currencies, $103.0 million in working capital and no outstanding borrowings, according to the company's quarterly filing.

Context — Why the AI Pivot Matters Now

The quarter marks the first time Digi Power X's AI segment has approached half of total revenue, a shift the company framed as evidence its transformation from digital currency mining into AI infrastructure is taking hold. Legacy Bitcoin activities fell to roughly 27% of revenue from about 63% in the quarter ended 30 September 2025, and the company said AI revenue more than offset that decline.

The catalyst is the Columbiana, Alabama campus, where a ten-year take-or-pay colocation agreement with AI tenant Cerebras underpins contracted revenue. The company said Phase 1 (15 MW) is expected to provide annual fees averaging about $40 million over the ten-year term, for an aggregate of approximately $402 million. Phase 2 (25 MW) would add roughly $58.5 million in annual fees, lifting combined average annual fees to about $107 million and total contract value to approximately $1.07 billion if both phases commence.

The company also launched the NeoCloudz Token Factory this quarter, moving from renting out compute at wholesale to selling AI inference directly to customers. Because Digi Power X owns the power, data centers and GPUs, it said it keeps the value of every token it serves rather than passing it to a third party.

A $200 million project-level debt facility syndicated by Goldman Sachs, announced 13 October 2026, is intended to support the 40 MW Columbiana build. The company expects closing in Q4 2026, subject to definitive documentation and lender diligence.

Data — What the Numbers Show

Revenue rose to $12.25 million from $6.63 million in Q2 2026, while net income swung to $1.0 million from a $14.36 million loss the prior quarter. Basic and diluted EPS was $0.01 versus negative $0.17. The company attributed net income largely to digital currency and warrant valuation gains.

GAAP gross loss narrowed to $2.41 million from $5.48 million, but gross profit before depreciation and amortization turned positive at $3.08 million from a $1.46 million deficit — a $4.54 million swing.

Metric	Q3 2026	Q2 2026	Change
Revenue	$12.25M	$6.63M	+85%
AI revenue	$5.66M	$1.08M	>+400%
Net income (loss)	$1.0M	$(14.36M)	+$15.40M
EBITDA	$6.53M	$(10.29M)	+163%

Adjusted EBITDA was $0.6 million versus negative $1.0 million a year earlier. The reconciliation added back $2.2 million in share-based compensation and $0.5 million in FX loss, then stripped out a $7.1 million crypto revaluation gain and a $1.5 million warrant fair-value gain. Net fixed assets nearly doubled to $145.6 million from $73.24 million. Cash fell $22.78 million from Q2's $142.42 million.

Analysis — What It Means for the AI Infrastructure Trade

The revenue mix now splits roughly 46% AI and 27% legacy Bitcoin, a composition that puts Digi Power X closer to GPU-cloud peers than to pure miners. Energy sales rose 68% quarter over quarter and 9% year over year to $3.29 million, giving the company a second non-AI revenue leg.

The limitation is that headline profitability leaned on non-operating items. Net income of $1.0 million depended on a $7.1 million crypto revaluation gain and a $1.5 million warrant gain; Adjusted EBITDA of $0.6 million shows core operations only just crossed break-even. GAAP gross loss persisted at $2.41 million.

Execution risk sits with Columbiana. Phase 1 tenant access and commissioning is targeted for 15 December 2026, with billing expected to begin January 2027, and Phase 2 tenant access targeted for March 2027 — both subject to conditions. The $200 million Goldman Sachs facility has not closed, and the company said there can be no assurance it completes on anticipated terms or at all.

Positioning reflects that uncertainty: the company's 2027 capital plan of roughly $350 million is intended to be funded principally through customer deposits, prepayments and contract-backed debt, an approach it said is designed to minimize shareholder dilution. Investors tracking the AI data center build-out will watch whether deposits materialize before construction spending accelerates.

Outlook — What to Watch Next

The first checkpoint is 15 December 2026, when Digi Power X expects to hand its tenant access to the Phase 1 facility and begin commissioning liquid-cooling and power systems. Phase 1 billing is expected to start in January 2027.

The company targets a revenue run-rate of approximately $250 million to $300 million annualized, or about $21 million to $25 million per month, by the end of Q3 2027, subject to adequate financing and market conditions. It said roughly $143 million of that run-rate is supported by current operations and the Columbiana tenant agreement, including conditional Phase 2.

Phase 2 tenant access is targeted for March 2027, and closing of the $200 million credit facility is expected in Q4 2026. The company also plans to convert New York infrastructure assets to AI operations beginning in Q3 and Q4 2027, and is developing a North Carolina campus contemplating approximately 75 MW in 2029 and another 75 MW in 2030.

Frequently Asked Questions

How much of Digi Power X's revenue now comes from AI?

AI revenue reached $5.66 million in Q3 2026, or 46.2% of the $12.25 million total. That breaks into $3.20 million from Tier III colocation services and $2.46 million from GPU rental under the NeoCloudz platform. A year earlier, AI revenue was nil. The company said GPU rental rose 127% from the prior fiscal quarter.

What is the Columbiana colocation contract worth?

Digi Power X said its ten-year take-or-pay agreement with Cerebras is expected to generate average annual fees of about $40 million for Phase 1, totaling roughly $402 million. If the conditional 25 MW Phase 2 proceeds, it would add approximately $58.5 million in annual fees, bringing combined average annual fees to about $107 million and total contract value to approximately $1.07 billion.

Does Digi Power X carry any debt right now?

The company reported no outstanding borrowings at quarter end and $119.6 million in cash, cash equivalents and digital currencies. A proposed $200 million credit facility syndicated by Goldman Sachs is expected to close in Q4 2026, subject to definitive documentation and conditions, and would be structured at a project special purpose vehicle level with an unsecured company guarantee through project completion.

Bottom Line

Digi Power X's AI revenue surge is real, but core profitability still hinges on non-operating gains and unclosed financing.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.