Shares of Digi Power X (DGXX) surged 11.5% to $8.76 Tuesday morning after the company announced a $35 million commitment to buy NVIDIA's next-generation AI computing systems for its cloud rental platform. The move extends a remarkable run for this former cryptocurrency miner, whose stock has rocketed from under $3 in mid-April to near its 52-week high of $9.20 — but the gap between the company's ambitions and its actual revenue remains enormous.
A Big GPU Order, Funded by a Newly Fat Balance Sheet
The $35 million purchase targets NVIDIA's newest rack-scale computing hardware — the successor to the current generation — pairing advanced AI chips with high-speed networking.
Initial deployment is targeted for early 2027, funded from cash on hand.
As of today, Digi Power X reports roughly $150 million in cash, with about $65 million already invested this year into its Alabama data center. The purchase eats roughly 23% of the cash pile — material but not existential.
The Revenue Picture Is Still Mostly Promises
Q1 revenue came in at just $6.8 million, down from $9.3 million a year ago, reflecting the planned wind-down of its old mining business.
The company reported a net loss of $4.7 million.
Management is targeting $250–$300 million in total revenue by 2027 — roughly a 40x jump from current levels. Trailing twelve-month revenue is just $34.2 million, with a net loss of $28.4 million. Investors are paying for a future that hasn't arrived yet.
A $1.1 Billion Contract Anchors the Bull Case
The company signed a $1.1 billion, 10-year AI colocation agreement — essentially renting powered data center space to an AI company — which secures long-term contracted revenue.
Phase 1 of its Alabama campus (15 megawatts of computing power) targets a December 2026 launch, with full 40-megawatt capacity by early 2027. That contract backstops the story, but delivery risk looms over a company that only began booking AI revenue in May 2026.
The Valuation Dares Investors to Believe
At a market capitalization around $730 million, DGXX trades at more than 20 times its trailing revenue — a premium that only makes sense if the 2027 revenue targets materialize. A $750 million shelf registration and $175 million at-the-market equity program signal that dilution — the company selling new shares to raise money — remains a live risk.
Short interest sits at 3.4 million shares, and has jumped 327% over the past year, showing skeptics are betting against the story even as the stock climbs.