Digi Power X (DGX) Sidoti May Micro-Cap Virtual Conference summary

Company overview and strategy

• Operates as an energy infrastructure company with a robust asset portfolio, including a wholly owned combined cycle power plant and multiple Bitcoin mining facilities.

• Focuses on acquiring, building, and managing infrastructure for tier one (Bitcoin mining) and transitioning to tier three (AI/data centers).

• Maintains a conservative financial approach with over $10 million in cash and no debt, and significant insider ownership at 20%.

• Generates revenue from energy sales, Bitcoin mining (self-mining and co-location), and is rapidly moving into AI/data center markets.

• Founded in 2021, the company has grown through equity offerings and infrastructure investments.

Asset footprint and operational highlights

• Operates three major Bitcoin mining assets: Alabama (22 MW, load study for 55 MW), North Tonawanda, NY (60 MW, pending upgrade to 120 MW), and Buffalo, NY (19 MW hydroelectric).

• North Carolina site has a 200 MW load study approved and is strategically located near a major Google Tier-3 data center.

• North Tonawanda power plant generates revenue via standby capacity payments, electricity sales to the grid, and Bitcoin mining co-location.

• Load study approval at North Tonawanda could double capacity and revenue potential in the near future.

• Alabama facility is set to be the first transitioned to a Tier-3 data center, leveraging existing infrastructure for rapid execution.

Transition to AI and Tier-3 data centers

• Transitioning Alabama site from Bitcoin mining to a Tier-3 data center, supported by a comprehensive feasibility study.

• Tier-3 data centers command higher valuations (up to 15x per MW), with the 22 MW Alabama facility potentially worth $330 million post-transition.

• Created a new subsidiary, US Data Centers, to house Tier-3 assets and attract institutional capital that cannot invest in crypto.

• Plans to access infrastructure debt lending from major institutional players for future growth.

• Key milestones include North Tonawanda load study approval and securing a major tenant for the Alabama data center, targeted for the second half of 2025.