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Investing.com - H.C. Wainwright has reiterated its Buy rating and $2.50 price target on Digi Power X Inc (NASDAQ:DGXX), currently trading at $2.18, as the company transitions from bitcoin mining to AI infrastructure. According to InvestingPro data, the stock has gained 45.33% year-to-date despite recent volatility, with 13 additional real-time insights available to subscribers.
The firm notes that Digi Power X’s Alabama data center features 22MW power infrastructure previously used for bitcoin mining, with potential to scale to 50MW over time. The company has ceased mining operations at this location and is preparing the site for 15 pods, each consuming 1MW and housing 256 Nvidia (NASDAQ:NVDA) chips in SuperMicro Computer systems.
Digi Power X reported $8.1 million in revenue for Q2 2025, down 13% from $9.3 million in the previous quarter, primarily due to a 35% sequential decline in energy sales to $2.2 million. The analyst suggests this $2.2 million figure likely represents the quarterly run rate going forward for the energy sales segment.
The company’s medium-term AI-focused operation involves running 15 pods in Alabama on existing infrastructure, with potential revenue of $7-10 million annually per pod while generating over 30% EBITDA margin. This transition represents a significant shift in the company’s business model.
Digi Power X has addressed capital constraints through a $15 million raise on July 21 and a $100 million ATM after the quarter closed, though H.C. Wainwright notes the complete 15-pod Alabama upgrade could cost approximately $120 million.
In other recent news, Digi Power X Inc has caught the attention of H.C. Wainwright, which reiterated its Buy rating for the company. This decision follows a shareholder letter from CEO Michel Amar, which detailed the company’s strategic shift from bitcoin mining to high-performance computing. The firm maintains a price target of $2.50 for Digi Power X. As part of this transformation, the company has secured a 50-megawatt power block in Alabama. Additionally, Digi Power X has entered into a partnership with SuperMicro Computer for servers that will utilize Nvidia B200 Blackwell modules. These developments indicate a significant change in the company’s operational focus, aligning with similar moves by industry peers like Core Scientific and Bit Digital. The recent strategic moves could influence Digi Power X’s future performance and market positioning.
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