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DGXX Lands a Billion-Dollar Cerebras Deal, But Can a $34 Million Revenue Company Actually Build It?

Shares of Digi Power X surged past $9.07 in pre-market Tuesday — up +8% and extending a blistering +46% rally in five trading days — after the former crypto miner announced a 10-year colocation deal with AI chipmaker Cerebras Systems, now pricing its own blockbuster IPO this week. The deal's sheer scale relative to DGXX's size raises a fundamental question: is this a transformational contract or a promissory note the company can't cash?

• A $1.1 Billion Contract on $34 Million in Revenue. DGXX signed a 10-year Master Services Agreement with Cerebras for a purpose-built, 40 MW AI data center campus in Columbiana, Alabama. The initial term is valued at approximately $1.1 billion, with up to $2.5 billion potential including renewals. For context, DGXX's trailing twelve-month revenue is just $34.2 million , and its net loss is -$28.4 million . The contract is worth roughly 32 times the company's current annual sales — transformative if delivered.

• Phase 2 Depends on Money DGXX Doesn't Have Yet. The second phase's additional 25 MW is conditioned on Digi Power X securing adequate financing.

The company plans to self-fund Phase 1 construction , but it just boosted its at-the-market share-sale program to $175 million — a mechanism to sell stock gradually at prevailing prices. Shareholders have already been substantially diluted, with shares outstanding up 38% in the past year. More dilution is virtually guaranteed.

• Cerebras Lends Credibility, but Its Own Story Is Unproven. Cerebras is set to IPO on Nasdaq May 13–14, 2026, at $125–$135 per share, valuing the company at $26–$27 billion. It's a legitimate partner — Cerebras signed a deal with OpenAI to deliver 750 megawatts of computing power through 2028 — but it has never traded publicly. If Cerebras's IPO stumbles, the halo effect on DGXX could reverse fast.

• The Stock Is Pricing in Perfection Before a Single Watt Ships. Revenue from the agreement is expected to commence in late 2026, with full revenue ramp upon completion targeted for Q1 2027.

DGXX's market cap now sits at roughly $541 million — a company still losing money, with zero AI revenue, valued at half of a contract it hasn't begun building. Analyst price targets top out at just $10 , barely above today's price. Investors are betting on the blueprint, not the building.