Digi Power X (DGX) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, grew 104% year-over-year to $31.4 million, driven by expansion in colocation and energy sales.

• Q3 revenue was $9.2 million, up 71% compared to the same quarter last year.

• EBITDA for the nine months was over $5.5 million, nearly 3.5x higher than the same period in 2023.

• Strategic focus shifted toward colocation and energy infrastructure, leveraging partnerships with major U.S. Bitcoin miners and investing in upstream power assets.

• Maintenance at the flagship North Tonawanda plant reduced Q3 results, but full operations resumed in December.

Financial highlights

• Colocation services generated $10.7 million in revenue, a new segment for 2024, compared to zero in 2023.

• Digital mining revenue declined year-over-year from $13.5 million to $10.3 million due to the Bitcoin halving and focus shift.

• Energy sales revenue rose to $10.3 million from $1.7 million year-over-year, benefiting from grid sales at peak demand and a 128% increase.

• Positive adjusted EBITDA and working capital of nearly $1 million; cash balance close to $9 million after $4 million financing.

• Net loss for the nine months was $6.3 million, improved from a $12.2 million loss in the prior year period.

Outlook and guidance

• Anticipates continued top-line growth from MW expansion and increased colocation agreements.

• Plans to expand Columbiana, Alabama, from 22 MW to 55 MW and North Tonawanda from 60 MW to 120 MW, pending regulatory approval in Q1 2025.

• Targeting 6-7 EH mining capacity by Q1 2026; expects high-performance computing (HPC) to become the main value driver.

• Five MW of Tier 3 HPC expected online by late 2025/early 2026, with incremental expansion to 20 MW.

• North Carolina site with 200 MW allocation planned for development post-Alabama, targeting 2026-2027.