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Digi Power X Inc. Subsidiary Achieves Critical Data Center Certification

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 11/1/2025, 12:17 pm ET 11/1/2025, 12:17 pm ET | 5 min 5 min read
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Digi Power X Inc.’s stocks have been trading up by 8.3 percent due to strong quarterly earnings, beating estimates.

Technology industry expert:

Analyst sentiment – negative

  1. Market Position & Fundamentals: Digi Power X Inc. (DGXX) is experiencing financial strain, evident from key financial metrics. With perpetual losses such as an EBIT margin of -37.4% and a net income of -$10,385,750 for a recent quarter, the company struggles to achieve profitability, reflected in its negative profit margins. Furthermore, the cash flow statement reveals an operating cash outflow of $8,199,222 and a free cash flow deficit of $8,974,479. Despite a total asset base of $37,294,717, challenges such as a high price-to-sales ratio of 7.76 remain. These factors, alongside a poor quick ratio of 0.7, denote a frail liquidity position and signal a substantial risk profile, illustrating significant headwinds in achieving sustainable economic growth.

  2. Technical Analysis & Trading Strategy: Analyzing recent price patterns of DGXX, there is a discernible trend of declining prices with minor rebounds. The weekly data ranged between $4.74 to $6.06, with the recent close at $6. Notably, a strong resistance is observed near the $6.65 mark, while support levels appear weak below $5.65. With current candles showing bearish tendencies, indicated by failed attempts to breach previous highs consecutively, a sell strategy is advised. Traders should aim to sell near resistance levels and consider establishing short positions, provided the price remains under the critical $6.65 threshold, confirming the bearish sentiment and weak volume patterns.

  3. Catalysts & Outlook: Digi Power X (DGXX) recently secured a Tier 3 certification for its subsidiary’s AI-ready data center platform, which is a commendable achievement. However, compared to the broader Technology sector and Software & IT Services benchmarks, DGXX underperforms in profitability and growth metrics. While the Tier 3 certification could drive future operational efficiency and customer confidence, these advances need to translate into tangible financial returns to alter the negative trajectory. A critical eye on the $6.65 resistance level is warranted, as surpassing this could signal a shift in momentum. Nevertheless, the current overall sentiment remains Negative, given ongoing fundamental and technical challenges.

Candlestick Chart

Weekly Update Oct 27 – Oct 31, 2025: On Saturday, November 01, 2025 Digi Power X Inc. stock [NASDAQ: DGXX] is trending up by 8.3%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Analyzing Digi Power X’s financial health provides a mixed picture. The recent financial reports reveal substantial challenges, as seen in their negative EBIT margin of -37.4% and net income losses from continuing operations hitting $10.39M. The company’s gross margin of -31.3% indicates difficulties in managing costs relative to revenue. Although the revenue for Digi Power X stood at around $37.00M, the earnings per share reported a stark -$0.28, reflecting the company’s struggle with profitability.

More Breaking News

The price movements in the past trading days have fluctuated, with notable volatility observed. For instance, on October 31, 2025, the stock opened at $6, climbing to a high of $6.65 before closing at $6. This indicates investor sensitivity possibly reacted to external or internal developments such as the recent certification news. Yet, the debt levels appear manageable, with total liabilities around $10.66M, supported by a current ratio of 1.2, suggesting some room to maneuver financially despite the challenges at hand.

Conclusion

Digi Power X Inc.’s ability to secure Tier 3 certification for its data center platform is a noteworthy development likely to influence its market trajectory. As millionaire penny stock trader and teacher Tim Sykes, says, “You must adapt to the market; the market will not adapt to you.” This philosophy seems to resonate well with Digi Power X’s recent strategic moves. Despite existing financial hurdles, such highly regarded accreditation bolsters its market strategy as a solid provider within the data infrastructure realm. Observers and traders are likely to keep a close eye on how these technical achievements translate into tangible financial recovery and growth opportunities for the company. With such a blend of strategic validation and technological advancement, Digi Power X could be on the brink of enhancing its market share and financial health, making it an intriguing prospect for growth-oriented stakeholders.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”