Digi Power X stock rating reiterated at Buy by H.C. Wainwright

H.C. Wainwright reiterated a Buy rating and $2.50 price target on Digi Power X Inc (NASDAQ:DGXX) Tuesday, following a shareholder letter from CEO Michel Amar outlining the company’s strategic direction. The stock, currently trading at $2.32, has shown remarkable momentum with a 58.9% gain in the past week. According to InvestingPro analysis, the company’s overall financial health score stands at "FAIR."

The research firm highlighted Digi Power X’s pivot from bitcoin mining to high-performance computing, a transformation also undertaken by competitors Core Scientific and Bit Digital. The company has secured a 50-megawatt power block in Alabama and formed a partnership with SuperMicro Computer (NASDAQ:SMCI) for servers powered by Nvidia (NASDAQ:NVDA) B200 Blackwell modules. InvestingPro data reveals the company’s market capitalization of $86.14 million, with 13 additional ProTips available to subscribers covering everything from growth prospects to financial health indicators.

H.C. Wainwright noted that establishing such partnerships is "not as easily done as said" and expects the Alabama installation to progress in stages. The firm expressed uncertainty about the deployment timeline and the absence of a visible customer relationship.

The research firm emphasized that Digi Power X has approximately 100 megawatts available to support high-performance computing operations, with additional power capacity to develop.

H.C. Wainwright previously outlined a similar strategic vision for the company on April 7 in a report titled "New Name Reinforces Strategic Direction—Power Availability Intrigues and Cements Avenue Forward; Reit Buy."

In other recent news, Digi Power X Inc reported a preliminary revenue estimate of $12.1 million for the March quarter, with significant contributions from hosting services and $3 million from energy sales. The company’s annual revenue reached $37.0 million, a 42% increase compared to the previous year’s $26.1 million. This growth is attributed to a strategic shift towards hosting services, with co-location services increasing to $35.1 million, up from $15.8 million in 2023, while self-mining revenue fell to zero from $10.3 million. H.C. Wainwright reaffirmed its Buy rating for Digi Power X, maintaining a price target of $2.50, citing confidence in the company’s expanding power capacity. Digi Power X currently operates around 100MW across three sites and is exploring opportunities to access up to 200MW at a new site in North Carolina. The company plans to expand its Alabama site for High-Performance Computing in collaboration with a potential customer. This development could involve a joint venture or partnership, pending approval and permitting processes. Construction on the Alabama site is anticipated to begin once an agreement is finalized.

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