DGXX · Digi Power X Inc. Subordinate Voting Shares

The thesis

Digi Power X's case rests on one delivery: Phase 1 of its Alabama artificial-intelligence (AI) colocation campus entering service in December 2026, which management set as the ready-for-service target in its 7 July 2026 operations update. That date, and the third-quarter report expected in mid-November, decide whether a $1.1 billion, 10-year contract starts turning into revenue. Until then the shares trade on construction progress and funding, and the evidence leans slightly against them beating the S&P 500 over the next three months.

The narrative is maturing: the pivot from bitcoin mining to AI hosting has been public since the 5 May 2026 contract signing, and the shares slipped from a $4.22 close on 28 September 2026 to $3.97 on 1 October 2026 even as Jones Trading initiated coverage on 28 September 2026 with an $8.00 target, according to StreetInsider. Fresh coverage did not bring fresh buying in those three sessions.

Bullish and bearish views on Digi Power X Inc. Subordinate Voting Shares

The bull case on Digi Power X Inc. Subordinate Voting Shares (DGXX), in brief: A large contract anchors the campus. The bear case: Losses are still wide.

Bull case

• A large contract anchors the campus. The company signed a 10-year, $1.1 billion AI colocation agreement for 40 megawatts (MW) on 5 May 2026, per the 7 July 2026 update. Management sizes that one agreement at $80–100 million of annualized revenue once running.
• AI revenue has already started. The 14 August 2026 second-quarter release reported about $1.1 million of graphics processing unit (GPU) rental revenue from roughly five weeks of operation. The NeoCloudz GPU-as-a-Service platform has run workloads without interruption since the second quarter, per the 7 July 2026 update.
• Cash stood at $142.4 million on 30 June 2026, per the 14 August 2026 release.
• Management targets a much larger revenue base. The 7 July 2026 update set a fiscal 2027 annualized run-rate target of $250–300 million, against second-quarter 2026 revenue of about $6.6 million.

Bear case

• Losses are still wide. Second-quarter 2026 revenue was about $6.6 million against a net loss of about $14.4 million, per the 14 August 2026 release.
• Construction spending meets an open share-issuance program. Year-to-date Alabama capital spending reached $95 million by 3 July 2026, and the at-the-market offering capacity was raised to $175 million on 8 May 2026. Shares can be issued into any rally, which caps rebounds.
• Contracted value is not recognized revenue. The $1.1 billion figure spans ten years and depends on the campus entering service; a December slip would push that revenue into 2027.
• Analyst views are split. MarketBeat's 1 October 2026 summary lists two Buy ratings and one Sell (Weiss Ratings, reiterated 17 July 2026), with a $5.00 consensus target.

Price setup

The shares closed at $3.97 on 1 October 2026, 53.1% below the $8.46 52-week high and 16.2% lower over three months. The 14-day relative strength index (RSI) of 53.7 sits in neutral territory, with no sign of an overheated run.

The 1 September 2026 close of $3.42 marks the low end of the September recovery and is the reference level for the case; a weekly close below it would erase the month's gains. The $4.22 close on 28 September 2026, the day of the Jones Trading initiation, is the nearest overhead reference.

Crowding evidence is thin. No earnings date falls inside the next 30 days, the three-month trend is down, and the main observable pressure is supply: the $175 million share-issuance program.

Catalysts, next 30 days

• ~13 November 2026 (est.), outside the window: Third-quarter 2026 results; the second-quarter report came on 14 August 2026. The case turns on GPU revenue growth and any change to the Phase 1 date.

Elapsed catalysts

• ~9 October 2026 (est.): Possible third-quarter operations update, following the precedent of the 7 July 2026 update issued days after the second quarter closed. It would show whether Phase 1 remains on its December schedule and how much cash remains after construction spending. (passed 3d ago)
• December 2026, outside the window: Phase 1 ready-for-service target, per the 7 July 2026 update. This is the event that decides the case. (passed 97d ago)

What would change the view

The case breaks if management moves Phase 1 beyond December 2026, if the 40 MW customer contract is amended or delayed, or if heavy share issuance funds construction at prices near the current $3.97 close. On price, a weekly close below $3.42, the 1 September 2026 close, ends the recovery reading.

The reading would improve if a third-quarter update confirms the December date with cash covering the remaining Phase 1 spend, or if the shares recover above the $4.22 close of 28 September 2026 on company news.

What it trades with

Digi Power X still earns most of its revenue from bitcoin mining and energy sales, judging by the second quarter's $6.6 million total against $1.1 million of GPU revenue, so the shares remain exposed to the bitcoin price. The AI-hosting story ties them to other former miners converting sites to AI colocation, and sentiment toward that group, including any pullback in hyperscaler or AI-lab capital spending, is likely to move the shares alongside company-specific news.