How will a $200 million debt commitment shape Digi Power X (DGXX)?

Sonal Goyal

28 October 2026 05:16 PM AEDT

How will a $200 million debt commitment shape Digi Power X (DGXX)?

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Key Highlights

Digi Power X announced on 13 October 2026 a commitment letter for $200 million of debt financing, expected to close within 90 days, to complete a 40 megawatt Facility in Alabama.
Second-quarter 2026 Revenue was about $6.6 million, including $1.1 million from GPU rental, and the net loss was about $14.4 million.
Cash was $142.4 million at 30 June 2026, and management cited about $1.1 billion of contracted AI data centre revenue under a ten-year agreement.

A financing commitment for the Alabama build

Digi Power X Inc. (NASDAQ:DGXX), which also trades on Cboe Canada as DGX, announced on 13 October 2026 that it had received a commitment letter for $200 million of debt financing. The company is converting its infrastructure into artificial intelligence data centres, and the money is aimed at completing a 40 megawatt facility in Columbiana, Alabama.

According to the release, the lender is described only as a major lending institution and the debt is being syndicated by Goldman Sachs. The deal is expected to close within 90 days, subject to definitive documentation and the lender's due diligence. It would sit at the level of a project special purpose vehicle, with an unsecured company guarantee through completion.

The company said the proceeds are intended to complete the project, preserve corporate Liquidity and limit dilution. It added that no shares were issued under its at-the-market programme in the third quarter, and that it held about $135 million of cash against roughly $153 million of Capital Expenditure so far this year. A commitment letter is not a completed financing, and terms may change.

Second-quarter results

The latest reported quarter, released on 14 August, was the second quarter of 2026. Revenue was about $6.6 million, comprising roughly $3.6 million from colocation and legacy mining, $1.9 million from energy sales and $1.1 million from graphics processing unit rental, the first AI compute revenue after about five weeks of operation.

The net loss was about $14.4 million, including a $5.0 million Warrant fair-value loss and a $2.8 million crypto Revaluation loss. Adjusted EBITDA, a non-GAAP measure, was about $3.3 million positive, against roughly $0.1 million a year earlier. Cash was $142.4 million at 30 June and the chief executive said the company had no debt at that point.

Contracts and management targets

Management cited roughly $1.1 billion of contracted AI data centre revenue under a ten-year agreement, with an option that could lift potential value to about $2.5 billion. These are contractual and potential figures, not recognised revenue.

Targets for 2027 are forward-looking: an annualised revenue run-rate of $250 million to $300 million by the third quarter of 2027, and about $140 million of annualised contracted run-rate during 2027. Management also expects third-quarter 2026 revenue to rise significantly from the second quarter. Phase 1 of Alabama, at 15 megawatts, is expected in December 2026 and Phase 2, a further 25 megawatts, in March 2027.

What to watch

Key checkpoints are measurable. First, whether the $200 million facility closes within the stated 90 days and on what terms. Second, whether Phase 1 in Alabama is delivered in December 2026 as scheduled. Third, third-quarter revenue against the second quarter's $6.6 million. Fourth, cash balances and capital expenditure trends against the $153 million spent so far this year.

The company itself describes trading in its securities as highly speculative, and construction delays, cost overruns and financing risk are acknowledged.

FAQs

Q: What is the $200 million commitment letter for Digi Power X?

A: It is a commitment letter for debt financing announced on 13 October 2026, intended to complete a 40 megawatt AI data centre in Columbiana, Alabama. It is expected to close within 90 days, subject to documentation and due diligence.

Q: What were Digi Power X's second-quarter 2026 results?

A: Revenue was about $6.6 million, including $1.1 million from GPU rental, and the net loss was about $14.4 million. Adjusted EBITDA was about $3.3 million positive.

Q: When is the Alabama facility expected to be delivered?

A: Phase 1, at 15 megawatts, is expected in December 2026 and Phase 2, a further 25 megawatts, in March 2027.

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