Business Insights and Market Implications

Financial Performance

• Production Value: Bitcoin production in May 2025 was approximately $4.3 million, a 23% increase from the previous month.
• Bitcoin Production: Miners produced ~35 BTC in May 2025, valued at $3.7 million (based on a BTC price of $105,000).
• Revenue: Gross energy and power revenue was ~$0.6 million in May 2025.
• Cash Position: As of May 31, 2025, the Company held cash, BTC, and cash deposits totaling ~$9.3 million, down from $10.2 million in April due to $0.6 million in capital expenditures and $0.2 million in carbon emission credits.
• Capital Expenditures: Year-to-date, the Company has invested ~$2.5 million in capital expenditures and mining infrastructure support equipment.

Operational Expansion

• Capacity Growth: The Company operates at ~100MW of available power and aims to expand beyond 200MW through asset portfolio growth and strategic acquisitions.
• Super Micro Collaboration: Partnered with Super Micro Computer, Inc. to deploy B200 GPU rack solutions in Alabama, targeting 55MW capacity by 2027.
• Community Solar Project: A 5.5 MW community solar array in New York has generated ~$100,000 in electricity bill credits since September 2024.
• Battery Storage Integration: Plans to integrate a behind-the-meter battery energy storage system at the Buffalo facility, aligning with New York’s energy storage targets.

Strategic and Market Implications

• Sustainability Commitment: Digi Power X’s focus on renewable energy and battery storage aligns with ESG goals, enhancing operational efficiency and environmental impact.
• Competitive Advantage: Strategic collaborations and investments in high-density compute infrastructure position the Company for scalable growth in the data center sector.
• Regulatory Compliance: Participation in NYSERDA’s energy storage program supports grid stability and contributes to New York’s 6 GW energy storage target by 2030.
• Long-Term Growth: The Company’s zero long-term debt and disciplined capital allocation strategy ensure flexibility in scaling operations while minimizing shareholder dilution.

Industry Impact

• Data Center Demand: The expansion of high-performance computing and AI-focused data centers underscores the growing demand for energy-intensive digital infrastructure.
• Sustainable Energy Transition: Digi Power X’s focus on renewable energy and storage systems highlights the broader industry shift toward sustainable operations.
• Market Leadership: The Company’s strategic investments and partnerships position it as a leader in integrating sustainable practices with cutting-edge data center operations.