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DATE

Friday, Aug. 14, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Michel Amar
• President - Alec Amar
• Chief Technology Officer - Jagan Jeyapaul

TAKEAWAYS

• Revenue -- $6.6 million for the second quarter, reflecting the planned wind down of legacy mining operations as the company transitions to AI compute services.
• GPU Bare-metal Rental Revenue -- $1.1 million, representing approximately five weeks of operations from the initial fleet of GPUs at the Alabama facility.
• Adjusted EBITDA -- $3.3 million, an increase of $3.2 million from the prior-year period driven by the high-margin profile of AI compute rentals.
• Net Loss -- $14.4 million, reflecting $4.1 million in depreciation and amortization along with $5.8 million in share-based compensation.
• Cash and Cash Equivalents -- $142.4 million as of June 30, 2026, compared to $1.7 million one year earlier.
• Current Cash Position -- $150 million as of Aug. 14, 2026, providing liquidity to self-fund data center development and attract debt lenders.
• Year-to-Date Capital Expenditures -- $110 million, focused on GPU equipment and data center infrastructure for the Cerebras contract in Alabama.
• Contracted AI Revenue -- $1.1 billion over a 10-year term, with an expansion option that could increase total contract value to $2.5 billion.
• Total Assets -- $279.6 million, increasing from $37 million in the previous year due to infrastructure investments.
• Working Capital -- $131 million, representing a $130 million year-over-year increase.
• GPU Infrastructure Investment -- $30 million, supporting approximately 0.6 megawatts of deployed AI compute capacity.
• Alabama Phase 1 Capacity -- 15 megawatts, with long-term equipment secured and service delivery scheduled for December 2026.
• Alabama Phase 2 Capacity -- 25 megawatts, with equipment delivery expected in late 2026 for completion in March 2027.
• Annualized Revenue Run-rate Target -- $250 million to $300 million by the third quarter of 2027, depending on deployment schedules and utilization.
• Contracted Revenue Run-rate -- $140 million expected during 2027 based on existing customer agreements.
• Quarterly Revenue Guidance -- expected to increase by over 100% in the third quarter of 2026 compared to the second quarter.
• New York Power Footprint -- 78 megawatts across sites in North Tonawanda and Buffalo, currently operating under grandfathered status.
• GPU Bare-metal Expansion Target -- 10 megawatts during 2027 to scale the NeoCloudz platform.
• US Data Centers Ownership -- 48%, following a capital raise that valued the subsidiary at $125 million.
• North Carolina Land Holdings -- 40 acres, with development plans for a campus targeting 150 megawatts to 200 megawatts by 2030.
• West Virginia Power Opportunity -- 1.3 gigawatts of potential power access under a letter of intent for land and utility infrastructure.

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RISKS

• Michel Amar stated, "Sometimes the ATM is a necessary evil," noting the company utilized at-the-market equity sales to build a cash balance required to qualify for debt financing.
• Michel Amar warned that due to a regional moratorium in New York, "We cannot expand our current footprint of power" beyond the existing 78 megawatts utilized at the company's legacy sites.

SUMMARY

Digi Power X Inc. (DGXX -3.87%) is transitioning its business model from legacy cryptocurrency mining toward AI infrastructure and high-performance computing services. Management reported that the company achieved positive adjusted EBITDA for the quarter and secured a multiyear contract for its Alabama data center campus. The company is seeking to mitigate shareholder dilution by securing debt financing for its expansion projects, having built a cash position to improve its credit profile. Construction at the Alabama facility remains on schedule to deliver 40 megawatts of capacity by the end of the first quarter of 2027.

• Management engaged Goldman Sachs to assist in syndicating debt financing for the Alabama data center and future infrastructure projects.
• CEO Amar noted that several major financial institutions have established "residual value for the GPUs," which management expects will facilitate asset-based debt financing.
• President Alec Amar noted that the Alabama site is the company's flagship, stating, "Everything in our development pipeline is easier the day Phase 1 energizes."
• CTO Jagan Jeyapaul stated the new Silicon Valley Lab will "advance GPU as a Service and power the next generation of AI Inference Clouds."
• Management reported that U.S. Data Centers Inc. raised capital separately to avoid using the cash required for core infrastructure development at Digi Power X.
• The company plans to open a Silicon Valley office in the third quarter of 2026 to house an engineering team focused on software layers for GPU-as-a-Service operations.

INDUSTRY GLOSSARY

• Adjusted EBITDA: A non-GAAP measure that adds back noncash items and revaluations to evaluate core operational performance.
• ATM (At-The-Market): A type of equity offering that allows a company to sell shares directly into the secondary market at prevailing prices.
• Bare-metal: A physical server dedicated to a single tenant without a virtualization layer, often used for performance-intensive AI tasks.
• Colocation: A data center model where a provider sells space, power, and cooling to customers who provide their own hardware.
• GPU (Graphics Processing Unit): Specialized hardware used for parallel processing, essential for AI training and inference.
• GPU-as-a-Service: A cloud model providing on-demand access to GPU computing power.
• GW (Gigawatt): One billion watts of electrical power.
• HPC (High-Performance Computing): The use of supercomputers and parallel processing techniques to solve complex computational problems.
• IT Load: The amount of electrical power consumed by servers and networking equipment in a data center.
• LOI (Letter of Intent): A non-binding agreement outlining the preliminary terms of a potential business deal.
• MLOps: Machine Learning Operations, a set of practices that aims to deploy and maintain machine learning models in production reliably.
• MW (Megawatt): One million watts of electrical power.
• Tier III: A data center standard requiring redundant power and cooling components to ensure 99.98% availability.
• Vera Rubin: A specific upcoming generation of NVIDIA GPU architecture.

Full Conference Call Transcript

Operator: Good morning, and welcome to Digi Power X, Inc.'s Second Quarter 2026 Financial Results Conference Call. Please note that this event is being recorded, and a transcript will be available on Digi Power X, Inc.'s website. [Operator Instructions] Unless noted otherwise, all amounts referred to during the call are denominated in U.S. dollars. Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable U.S. and Canadian securities laws. Such statements and information reflect current expectations and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations.

Those risks and uncertainties include, but are not limited to, factors discussed in Digi Power X, Inc.'s report on Form 10-Q for the 3 and 6 months ended June 30, 2026, and the annual report for the year ended December 31, 2025, as well as the company's other disclosure documents. Except to the extent required by applicable law, Digi Power X undertakes no obligation to publicly update or review any forward-looking statements or information. During the call, management may make reference to certain non-GAAP financial measures that are not separately defined under GAAP, such as EBITDA and adjusted EBITDA.

Management believes that those non-GAAP measures, when considered in conjunction with GAAP financial measures, provide useful information for both management and investors. Reconciliations between GAAP and non-GAAP measures are presented in the tables accompanying the press release highlighting Digi Power X financial results as of the quarter ended June 30, 2026, have been filed and made accessible under the company's continuous disclosure profile on SEDAR+ at www.sedarplus.ca and are also available on the SEC's EDGAR website at www.sec.gov/edgar. I would now like to turn the call over to Michel Amar, CEO of Digi Power X. Please go ahead, sir.

Michel Amar: Good morning, everyone, and thank you for joining us today as we share our results for the second quarter of 2026 for Digi Power X. I'll start with the highlights of the second quarter, 3 months ended June 30, 2026. Revenues of $6.6 million, reflecting the planned wind down of legacy operation as the company transitioned to AI compute and colocation revenue. GPU revenue recognized for $1.1 million, representing the company's first GPU bare-metal rental initial fleet of B200 and B300 GPUs deployed at the Columbiana, Alabama facility and it was started a little bit third week of May to the end of June. It's about 5 weeks of income.

Adjusted EBITDA of -- positive adjusted EBITDA of $3.3 million, an increase of $3.2 million compared to last year Q2 2025. If you add all the depreciation and the noncash-related items, it brings us to a net loss of $14.4 million for the quarter. Balance sheet and liquidity as of June 30, 2026. Cash and cash equivalents of $142.4 million versus $1.7 million. Working capital of $131 million representing a $130 million year-over-year increase from June 30, 2025. Basically, we have no working capital a year ago. Digital assets holding of $14.3 million.

Net fixed assets and equipment deposits for the buildup of the data center in Columbiana, $127.5 million, an increase of 447% year-over-year, reflecting capitalized investment at the Columbiana, Alabama facility. No long-term debt. Total assets of $279 million versus $37 million a year ago. Balance sheet and liquidity as of today. The company's cash and cash equivalents position is approximately $150 million today. Approximately $110 million year-to-date of capital expenditures deployed towards GPU equipment and data center build-out for our contract with Cerebras in Alabama facility. Operational highlights and outlook. At the Colombiana, Alabama, AI campus, the company is still targeting Phase 1 ready for service in December of 2026 and Phase 2 in end of Q1 2027.

Through its GPU-as-a-Service and bare-metal rental, Energy Sales and Legacy Colocation segments, the company anticipates Q3 to increase by approximately over 100% as compared to Q2. Q2 signified a substantial turning point for Digi Power X as the company recognized its first AI revenues ever, along with positive adjusted EBITDA and growth substantially year-over-year. Our balance sheet remains a source of strength for the company as we hold approximately $150 million in cash and cash equivalents as of today, no long-term debt, and we have already deployed approximately $110 million of CapEx year-to-date into our infrastructure in Columbiana, Alabama.

The company is currently in advanced debt financing discussions for the Alabama data center to advance our path to growth and mitigate dilution. As you know, being a major shareholder since privately 2016 where I invested personal funds of about $8 million and never sold 1 share. And I'm very sensitive about dilution as it affects me primarily. So I am on the same side of most of shareholders. I try to mitigate dilution as much as we can. Considering that last year, 12 months ago, we had basically no cash, $1.7 million. We had basically no assets, $37 million. We had basically no working capital.

We had to utilize certain tools like ATM in order to raise cash in order to be eligible for debt financing. Now I'll be ready for Q&A.

Operator: We will now be conducting a question and answer session with questions previously asked by shareholders. First question, what are the remaining tasks that Digi Power X needs to complete before the company can deliver the first 15 megawatts to Cerebras?

Michel Amar: So basically, we are done with the first 15 megawatts in terms of equipment purchases. All the long-term equipments have been placed and we are starting to receive them this month actually. We are actually few weeks earlier than schedule. So we feel very confident that we will be ready by December for Phase 1.

Operator: Second question, a similar question for Phase 2. What are the major items that need to be complete for delivering the second 25 MW?

Michel Amar: So we also are basically done for Phase 2. We secured -- and as mentioned earlier, in our total assets, you saw a big portion of deposits for equipment. We already secured all the long-term equipments to be received November, December. And we believe that we are in good shape to also complete Phase 2 by March 2027.

Operator: Third question, as it relates to your NeoCloud's business and goal of exiting next year with delivery 10 MW in GPU-as-a-Service, what are the obstacles to securing leases for these similar smaller-sized data centers? Is it capital, permits, locating long lead time items?

Michel Amar: So that's a very good, interesting question. So we have no issue of power and permits in the sense that 10 megawatts is not a lot of power in our power infrastructure. So we do have the power and the allocation. GPUs are very, very CapEx intensive. We started to buy GPUs, and we are running very successfully 100% uptime, really successfully operation for us. And as you know, we placed more GPU orders, the Vera Rubin that should land early Q1 next year, and that will add additional income on the GPU bare metal.

Good news in the last few weeks, as you read, NVIDIA and most of the banks, BlackRock, Blackstone, Goldman Sachs, KKR have created a fund and actually value -- residual value for the GPUs. So it's going to be much easier to get debt financing or asset-based financing on GPUs, which will allow us to accelerate our GPU bare-metal program. So we feel comfortable that we'll get the financing separately from the data center for growth for GPUs.

Operator: Fourth question. Given your sites in North Tonawanda, Buffalo, New York, does the 1-year moratorium on data centers in New York impact your ability to meet your targets of exiting 2027 delivering on 10 MW for NeoCloud and [indiscernible] additional 50 MW for colocation data centers for HPC?

Michel Amar: So great. So I get these questions a lot from many shareholders. And I want you to appreciate shareholders that we've been running Bitcoin mining legacy operation there since 2016 on one site and since 2021 on another site. And we were fully permitted then to run at these 2 sites under moratorium law, which was -- it's not a new law. It was always there for the last 4 years or 5 years. And we are grandfathered in New York. We cannot expand our current footprint of power. So I think we are using 60 megawatts in North Tonawanda and we are using 18 megawatts in Buffalo. So we are allowed to use the same power.

We are not allowed for now to expand power. But our goal is to just convert another colocation deal of 40 to 50 megawatts and GPU-as-a-Service or bare-metal for another 8 to 10 megawatts. That's our goal for 2027. So we have plenty of power there to sync our goal.

Operator: Question number five, please provide an update on the LOI Omnis Pleasants LLC, owner of the Pleasants Power Station, a 1.3 GW power generation facility in West Virginia.

Michel Amar: So great. So the owners of that power plant, one of the owner is Ajay Gupta, he is on my Board of Directors, and we signed an LOI. It's a monumental asset. 1.3 gigawatts is huge. And I do not want to be involved in the battle there on the power plant side. I just want to get land access to the electrical infrastructure and utilize utility power of up to 1.3 gigawatts. So I'm working very hard with my Board member to try to establish a growth path starting with 100 megawatts up to 1.3 gigawatts because the infrastructure is there without being involved in potential liabilities of that power plant. That's why it's a little bit slow.

And in any event, it would be more for an end of '27 to 2030 growth pattern event.

Operator: Our next question, what is the current strategy for company's North Carolina property holdings?

Michel Amar: So we own 2 lands over there, about 40 acres. We acquired within the last 12 months, an additional adjacent land so we can properly design and build an adequate data center there. We are in the process with Duke Energy and the zoning to get all the necessary load studies, permits for a major data center. And we believe that we will be able to utilize that asset towards 2029, 2030 with an additional 150 to 200 megawatts of power. So we are trying to plan our growth through all these sites from now until 2030, '31.

And if we just succeed in converting or pivoting in colocation and GPU bare-metal, half of these assets will become a huge, huge, huge company.

Operator: Next question, what is the current strategy for -- I'm sorry, what is happening with U.S. Data Center, Inc. Any updates?

Michel Amar: Yes. So the reason why U.S. Data Center owns 48% today from 55% is that we started to raise separately dollars in order to avoid taking the cash that we need 100% on the balance sheet of Digi Power to fuel current data centers and future data centers growth. We cannot be distracted in financing basically an equipment business, which is U.S. Data Center's purpose to basically design, manufacture modular system, mini data centers prefabricated that you assemble in different sites. So we did not want to distract or pool any cash from the Digi Power pool. So we started to raise money on this separately, and we raised money up to $125 million pre-revenue valuation.

We plan to raise a little bit more on a higher valuation. And the plan for '27 is to deliver to different sites modular systems like a piece of equipment. So it's a complete different business purpose than Digi Power, which is in the power and data center processing and GPU bare-metal.

Operator: And our last question, is the company still using its ATM vehicle? How are the funds utilized? What are your strategies to mitigate shareholder dilution? And also, please provide an update on the company's debt financing discussions.

Michel Amar: So that's one of the most important concern from all shareholders, including myself, the biggest shareholder, okay? Sometimes the ATM is a necessary evil. And 100%, I can assure you that with $1 million last year, $1.7 million last year of cash, I could never take off, borrow, stop any type of AI business, impossible. So I had to be -- I had to position the company in a way where we could be eligible to attract lenders with a strong balance sheet. Of course, everything has to be done in measures.

And I think we raised most of our ATM capital early Q2 at an average of -- I'm not going to guarantee the average, but much higher of our stock price today. I think our last ATM draw was at $7.25 or $7.50 a share. So we did not draw any dollars below that, if my memory serves right. So now we accumulated enough cash to, a, self-fund most of the data center of Alabama. So we are not at risk of execution from a financial perspective. And I think that it was very important to secure the execution of that first data center, which is a real catalyst for us.

Then how can I talk to a lender if I don't have cash sitting on my balance sheet? Lenders want to see cash, strong balance sheet, specifically this year. So now because we have a strong balance sheet, and I'll talk about the -- our company debt financing discussions today, we ended up engaging Goldman Sachs, a very reputable bank that has proven to be able to syndicate a lot of financing for very big companies, okay? And we are very confident that we will land debt financing for not only this project, but we will get cash back because we already -- as you -- we stated earlier, we already CapEx over $110 million.

So we're going to get cash back. We're going to preserve a strong balance sheet. We find a great partner -- financial partner, not only for this year, but for next year and the next few years of growth. We have all the cards in our hands. A little bit of faith from our shareholders, the same faith that I give to my company that I invested privately 10 years ago. And we will be in a very amazing situation in the next 3 months to 6 months. You have to appreciate that in 12 months, we changed that company numbers dramatically. We went from $1.7 million to $150 million of cash today, plus $110 million of CapEx.

That's a huge delta. We went from $37 million of assets to $279 million of assets. You have a company that has real assets with a very, very, in my opinion, low market cap compared to the assets and compared to the cash. So we are very close to execute our plan. We execute. That's our mission. We are focused on the execution. We have all the elements to do so. And next quarter, we should have a great update for you guys.

Operator: And we have reached the end of the question-and-answer session. And therefore, Michel, do you have any closing remarks?

Michel Amar: I think I just did it. That was my closing remarks. I need to be focused and all the team focus work. I wanted to add that subsequently, we are building a very, very smart team in Silicon Valley with our CTO, Jag. We have very talented engineers building the layer of software for GPU-as-a-Service. We got an office that will be open soon, actually very close to Cerebras, NVIDIA, Supermicro. And we plan to offer more to all verticals in all the different layers of this business. And the team we are building come from -- like Jag from Oracle, where he worked for like 11 years there as a lead, 2-gigawatt data centers.

So I think we are in good shape. We just need to push focus. We are -- the path is there, okay? It's all about execution. And we are closing the loop on the financial answers to mitigate dilution. And that's the goal for -- it's my goal. It's the goal for every company, but sometimes you have to get to a spot where you're eligible for debt financing. We are there now. Thank you, everyone.

Operator: Thank you. And this concludes today's conference, and you may disconnect your lines at this time. Have a good day.

Michel Amar: Thank you.