Digi Power X: A Tiny Stock With A Big Super Micro Bet

Summary Digi Power X Inc.’s purchase of Nvidia B200 systems marks a real shift from hype to execution, powering their NeoCloud AI platform and driving stock momentum. The company’s hybrid model—bitcoin mining, energy sales, and AI-ready modular data pods—offers multiple revenue streams, not just future promises. DGXX stock valuation is stretched, with negative margins and high volatility due to retail-heavy ownership, making this a high-risk, high-reward momentum play. Despite big red flags like ongoing losses and crypto dependency, DGXX could explode if it delivers; I’d treat it like a speculative call option. Introduction The July 17th move in Digi Power X Inc. ( DGXX ) wasn’t just another microcap spike on vague promises. This time, the company placed an actual purchase order with Super Micro Computer ( SMCI ) for Nvidia (NVDA) B200 (Blackwell) systems, which will power their new AI platform called NeoCloud. The stock exploded over 30% in premarket and held on to a solid 7.5% gain by market close. And I think that reaction makes sense, because it’s not a future promise; it’s an actual, active move in the right direction. About Digi Power X DGXX is easy to dismiss because it sounds like a buzzword smoothie. It’s a small-cap stock with crypto exposure, modular pods, energy, and AI. But take a second look, and it starts to get more interesting. They are mining bitcoin, but it’s not as straightforward as you might think. They’re setting up Tier 3-level, AI-ready data infrastructure. Portable modular pods (ARMS 200s) that can be deployed without needing to build a hyperscale facility from scratch. That’s the idea behind their NeoCloud platform. And even before all this AI talk, DGXX was already running a business. They’ve got about 100MW of active capacity spread across three locations, with plans to scale up to 200MW or more. They’re mining bitcoin, hosting third-party miners, reselling energy, stacking solar credits in New York, and considering battery storage in Buffalo (maybe they are doing more, but this is what I have found). They even have some cash flow from it. Revenue (Seeking Alpha) Super Micro Deal The first time you could hear about Super Micro and Digi Power X relations was back in May, something about their subsidiary working on a GPU rack deployment. At the time, the stock jumped 15% premarket on the news, but it wasn’t as important because this time it was a definitive order. Nvidia B200s are being installed into their modular pods, and we will most likely see the rollout already in the fourth quarter. This is what changes things. For the first time, it feels like this company is determined to work hard and achieve its goals. The main goal, as you will see in the quote below, is to bring in Tier 3 AI compute. Besides, it’s a good sign they ordered the best to make it work—Blackwell B200s. With Supermicro’s advanced B200 systems, we are now taking the steps to transition from infrastructure buildout to revenue generation. Our goal is to deliver Tier 3 AI-ready capacity equipped with the world’s most powerful GPUs for the generative AI era. Crypto and Energy Most of the money comes from crypto and energy. In May, DGXX brought in around $4.3 million from bitcoin mining and energy sales. They mined 35 BTC that month. By the end of June, the total crypto and cash balance jumped 45% in a month to $13.5 million. Q2 energy revenue hit $2.3 million, and they’re stacking extra value from side projects like a solar site in New York and potential battery integration. These are things most people aren’t looking at when they glance at the stock, but it’s good because it means they’re not depending entirely on one future launch. They’ve already got multiple revenue streams, which, hopefully, will only grow over time. Valuation Look, I’m not going to sugarcoat this; the valuation is way ahead of the fundamentals. P/B close to 5x, P/S around 3x, no earnings, negative margins—if you’re looking for a safe entry, this isn’t it. But sometimes valuation doesn’t tell the whole story, especially with early-stage companies chasing multiple fast-growing markets. Valuation (Seeking Alpha) The Super Micro deal makes it more interesting because there is an actual deployment scheduled. And there’s already revenue from bitcoin and from energy. Besides the valuation, I noticed that ownership is mostly in the hands of individual investors (about 67% + almost 14% by individuals/insiders). That kind of ownership structure creates a very specific type of market behavior, like we saw today. Volatility on any sentiment and headline, and not necessarily on fundamentals. Ownership (Seeking Alpha) If you’ve followed enough smallcaps before, you know how this works. When a company with a retail-heavy float announces something big (very much like a deal with Super Micro) or anything with Nvidia’s name in it, the stock doesn’t just go up 2–3%; it can fly 30%. Hello, DGXX, today on the premarket. But it works both ways. That same setup makes the stock fragile. If the company delays a product launch, misses a target, or if the investors get nervous for whatever reason, you’ll see DGXX fall just as fast as it climbed, if not faster. There’s no cushion of long-term institutional holders who’d be expected to keep holding. It’s a news-driven, momentum stock, and that kind of ownership base is like jet fuel when things go right and a wrecking ball when they don’t. That said, I also looked at their balance sheet , and while it’s far from perfect, they’re not buried under debt. There’s some cash to support near-term operations, and they’re clearly trying to keep the dilution risk low for now. All of this makes DGXX the kind of stock you have to watch like a hawk, not something you set and forget. But if they deliver a few more solid updates, the upside could be explosive. You just have to know what you’re getting into. Capital Structure (Seeking Alpha) Biggest Red Flags They’re still losing a lot of money, and gross margins are low. Almost every profitability metric is in the red. That’s not unusual for early-stage data infrastructure or mining companies, but it’s still a problem. If revenue doesn’t scale up quickly, they’ll need to raise more cash. And that would almost certainly mean dilution. Profitability (Seeking Alpha) Also, the bitcoin (BTC-USD) side of the business, which is one of the main revenue drivers, depends heavily on BTC prices. If crypto has a rough few quarters, its cash will disappear very fast. Conclusion DGXX is messy. But it’s the kind of messy that might become something really interesting. The AI dream is on the way, which, I must say, is great. The company has already gone further than most microcap stocks in this space. The crypto and energy business is carrying the company while that happens. And for a company this small, it looks like a solid setup. Now pay attention; it’s solid, but that does not guarantee the success of any kind. If it makes this whole hybrid AI-crypto-energy thing work, this stock won’t stay at these levels for long, and as I already said, it has the potential to fly sky-high. So, at this point, the decision is all yours, but if I were investing in it, I would treat it as a call option. Either it surges and makes you rich, or forget about all the money you have put in. Most likely, you won’t get it back.

Source: Seeking Alpha