Mr. Michel Amar reports

DIGI POWER X PROVIDES LETTER TO SHAREHOLDERS ON 2025 HIGHLIGHTS AND STRATEGIC UPDATE

Digi Power X Inc. has released a letter to its shareholders by Michel Amar, chairman and chief executive officer.

Dear fellow shareholders,

Two thousand twenty-five was a transformational year for Digi Power X, as we continue executing on our strategy to evolve from a solely digital asset mining-focused business into a power-backed AI infrastructure and Tier 3 data centre platform positioned to serve the accelerating global demand for AI compute, while still maintaining our digital asset mining business.

Strategic transformation

During the year, Digi Power X executed a deliberate strategic pivot toward AI-ready, modular data centre infrastructure, anchored by our wholly owned subsidiary, U.S. Data Centers Inc. This transition reflects our belief that long-term value creation in the AI economy is driven by ownership of secured power, scalable infrastructure and flexible compute platforms.

Central to this strategy is our proprietary ARMS (AI-ready modular solution) platform, designed to rapidly deploy Tier 3 data centre capacity optimized for high-density AI and enterprise workloads.

ARMS 200 deployment

In 2025, U.S. Data Centers completed the design and buildout of ARMS 200, our flagship modular Tier 3 AI data centre pod. The ARMS 200 is currently being set up and is expected to begin deployment in the first quarter of 2026 at our Alabama facility, representing a transition from development to revenue-generating infrastructure.

Key attributes of the ARMS 200 include:

• Tier 3 architecture with dual-path power redundancy;
• Modular scalability starting at one megawatt;
• Support for next-generation AI GPUs (graphics processing units) and liquid-cooling solutions;
• Accelerated deployment timelines.

During 2025, we also made utility and design patent filings covering both the ARMS branding and its modular architecture.

Power portfolio and infrastructure

Digi Power X significantly expanded and derisked its power footprint in 2025, establishing a strong foundation for AI data centre growth.

Upstate New York

• 123 MW secured in North Tonawanda;
• 18.7 MW secured in Buffalo.

Alabama

• 70 MW secured, with continued development of a Tier 3 AI data centre site featuring dual-path power and GPU cluster readiness.

North Carolina

• 200 MW available for future development, with planning under way for phased AI data centre deployment targeted for 2028 to 2029, subject to customary approvals, infrastructure buildout and market conditions.

These assets provide Digi Power X with substantial, grid-connected and scalable power across multiple U.S. regions.

AI compute, NeoCloudz and customer pipeline

Throughout 2025, Digi Power X advanced its AI compute road map, including planning and deployment for next-generation AI GPUs (B200-class). In parallel, the company continued development of NeoCloudz, its GPU-as-a-service platform offering flexible, high performance compute access for enterprises and AI-focused customers.

The company is currently in advanced negotiations with customers for 2026, covering both:

• AI data centre co-location;
• GPU-as-a-service offerings via NeoCloudz.

These discussions are intended to support contracted utilization as ARMS 200 and future deployments come on line. Although discussions are in advanced stages, there is no guarantee that any such customer contracts will be finalized.

Strengthened leadership

During the year, Digi Power X strengthened its executive team with the appointment of Jagan Jeyapaul as chief technology officer, joining the company from Oracle. Mr. Jeyapaul brings deep experience in enterprise infrastructure, hyperscale systems and mission critical platform operations.

As CTO, Mr. Jeyapaul will lead:

• Operational deployment of ARMS 200;
• Customer hardware and software integration;
• Technical architecture and scalability of the NeoCloudz platform

Financial strength

Digi Power X expects to end 2025 with a strong balance sheet comprising:

• Cash and liquidity position exceeding $100-million;
• No long-term debt;
• Year-to-date capital expenditures of approximately $13.5-million, focused on infrastructure, AI readiness and platform development

2026 outlook and guidance

Looking ahead, Digi Power X is focused on execution and monetization:

• ARMS 200 expected to begin deployment in the first quarter of 2026;
• Conversion of advanced customer negotiations into contracted revenue;
• The company's goal is to build and place into service up to 50 megawatts of AI-focused IT load during 2026, subject to customer demand, equipment availability and customary execution factors;
• Continued expansion of the ARMS product family and NeoCloudz platform.

We believe the foundation established in 2025 will help position Digi Power X for sustainable revenue growth, margin expansion and long-term shareholder value creation.

As we close out 2025, I want to thank our shareholders, employees, partners and customers for their continued trust and support. We have built a strong foundation this year, securing power, deploying differentiated AI infrastructure and strengthening our leadership team. I wish everyone a happy holiday season and look forward to continuing to execute on our plan in 2026.

Sincerely,

Michel Amar

Chief executive officer

Digi Power X

About Digi Power X Inc.

Digi Power X is an innovative energy infrastructure company that develops Tier III-certified modular AI data centres and drives the expansion of sustainable energy assets.

We seek Safe Harbor.