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

Strategic direction and business model

• Focused on leveraging energy infrastructure assets, currently operating as a Bitcoin miner with plans to pivot into Tier 3 high-performance computing data centers to capitalize on AI and data center trends.

• Owns and operates multiple sites: Alabama (22 MW, expandable to 55 MW), North Tonawanda (60 MW, with a load study for 120 MW), Buffalo (19 MW), and a 200 MW undeveloped site in North Carolina.

• Revenues are diversified across utility asset operations, Bitcoin mining (self-mining and colocation), and future data center services.

• Plans to transition Alabama’s facility into a Tier 3 data center, with a phased buildout starting with 5 MW by 2026 and targeting 22 MW.

• Announced a memorandum of understanding with NANO Nuclear to potentially deploy a small modular reactor for carbon-free power at North Tonawanda.

Financial position and growth outlook

• Maintains a debt-free balance sheet with over $10 million in cash and Bitcoin equivalents.

• Market capitalization is approximately $75 million, with significant insider ownership exceeding 22%.

• Revenue streams in 2023 were balanced: ~$10 million each from crypto mining, energy sales, and colocation services.

• Expects to scale power under management from 100 MW to 220 MW in 24 months, with a projected market cap upside to $375 million if data center transition succeeds.

• Current valuation metrics show the company trading at a significant discount to peers, with potential for a valuation uplift as it pivots to data centers.

Industry trends and competitive positioning

• Bitcoin mining and data center sectors are experiencing rapid growth, driven by high Bitcoin prices and AI infrastructure demand.

• Regulatory environment in Alabama is favorable, enabling faster project execution for data center conversion.

• Tier 3 data centers offer more stable and higher-margin revenues compared to Bitcoin mining, with industry comps at 15x EBITDA versus 5.8x for mining.

• The company is under-covered by analysts, aiming to increase visibility and attract more coverage in 2025.

• Management team has deep operational experience, particularly at the North Tonawanda power plant, supporting confidence in executing the data center pivot.