Digi Power X Inc. (NASDAQ:DGXX) entered into a non‑binding letter of intent with Omnis Pleasants LLC, the owner of a 1.3‑GW coal‑powered plant in West Virginia, on January 7 2026. The agreement sets the stage for a comprehensive load and interconnection study that will evaluate the plant’s long‑term power availability and grid connectivity for AI and high‑performance computing workloads.
The LOI outlines a potential lease of up to 200 acres at the Pleasants site, allowing DGXX to deploy its proprietary ARMS modular Tier III data‑center platform at scale. It also includes a framework for equity alignment, including a mutual equity exchange and a pathway for DGXX to acquire more than a 10 % ownership stake in the power‑plant entity, subject to valuation, financing, definitive agreements and regulatory approvals. The parties plan to begin the load study within 30 days and target definitive agreements within roughly 90 days.
This partnership is a key milestone in DGXX’s strategic pivot from cryptocurrency mining to AI‑focused energy and data‑center infrastructure. By pairing a large, grid‑connected power asset with its ARMS platform, the company can accelerate deployment of AI‑ready data centers, unlock high‑margin GPU‑as‑a‑service and colocation revenue streams, and strengthen its competitive position in the rapidly expanding AI market.
Financially, DGXX has improved its liquidity dramatically, reporting approximately $100 million in cash, cryptocurrency and deposits as of January 1 2026—up from roughly $8 million a year earlier. The company remains debt‑free but posted negative free cash flow of $35.43 million and a net loss of $12.24 million over the last twelve months, while reporting positive earnings in the most recent quarter. These figures illustrate the company’s ongoing investment in AI infrastructure and the cash‑burn associated with scaling its new business model.
The Pleasants Power Station, which resumed coal operations in August 2023 after a brief hydrogen‑transition experiment, provides a reliable, grid‑connected supply that can be leveraged for DGXX’s data‑center needs. The LOI also includes a joint hydrogen‑transition feasibility study for DGXX’s New York power assets, aligning the partnership with broader decarbonization initiatives and potential future diversification of the power mix.
CEO Michel Amar said the deal “advances our strategy of pairing large‑scale, grid‑connected power assets with next‑generation AI infrastructure.” The partnership signals DGXX’s confidence in the long‑term demand for AI computing and its commitment to building a vertically integrated, high‑margin data‑center ecosystem.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.