Digi Power X (DGX) Registration Filing summary

Company overview and business model

• Incorporated in British Columbia, the company operates digital infrastructure assets across North America, focusing on Bitcoin mining and energy supply via a 60MW natural gas power plant in New York.

• Operates three mining facilities in Buffalo and North Tonawanda, NY, and Columbiana, AL, with a combined hashrate of 2.2 EH/s and plans to expand to 5.0 EH/s in the next 12 months.

• Participates in mining pools for Bitcoin rewards and hosts third-party mining clients, with a transition to mining pool participation completed in 2022.

• Developing a 55MW Tier 3 data center in Alabama to support AI and HPC workloads, with phase one targeting 22MW by Q2 2026.

Financial performance and metrics

• As of March 31, 2025, estimated negative net working capital of $3 million and cash on hand of $1.7 million, plus 48 Bitcoin valued at $4.5 million.

• Cash operating expenditures are about $40 million annually, with $2.9 million per month for electricity and hosting, and $0.208 million per month for compensation.

• Generated 37 Bitcoin and $0.8 million in energy sales in March 2025; 2024 saw $18.4 million proceeds from selling 286 Bitcoin.

• Expects variable cash flow due to Bitcoin market volatility and may sell assets or Bitcoin to meet obligations.

Use of proceeds and capital allocation

• Net proceeds from offerings will fund operations, working capital, data center construction, debt repayment, acquisitions, and mining capacity expansion.

• Planned capital expenditures over the next 18 months are $15–25 million, exceeding current working capital.

• May liquidate or borrow against Bitcoin inventory to support business objectives.