Digi Power X Inc. (NASDAQ: DGXX) shares are gaining momentum on the charts following the announcement of a key debt settlement agreement. As of the market close, DGXX stock was trading at $3.07, reflecting a 14.55% increase. The rise follows the company’s disclosure of a settlement deal involving the issuance of shares to NANO Nuclear Energy Inc., aimed at addressing outstanding liabilities.
Debt Settlement to Conserve Cash and Support Growth
Digi Power X announced that it has reached a final settlement with NANO Nuclear to pay $250,000 in accumulated debts related to consultancy services rendered under a previous MOU signed on December 14, 2024. DGXX will issue 109,677 subordinate voting shares at a presumed price of C$3.10 per share as part of the deal.
This share offering will be subject to a statutory hold period from the closing date and will not be registered under U.S. securities rules. The completion of the deal necessitates regulatory clearance, including authorization from the TSX Venture Exchange.
Digi Power X emphasized that the move will safeguard vital cash reserves and enhance its ability to expand its artificial intelligence (AI) and energy infrastructure projects. The strategic financial decision advances DGXX’s main objective of enhancing long-term sustainability and promoting technological innovation.
SMR Feasibility Study in Progress with NANO Nuclear
Digi Power X also reaffirmed that it is continuing investigating the feasibility of incorporating small modular reactor (SMR) technology into its data center operations in collaboration with NANO Nuclear. The ongoing effort is to determine if it is practical to use SMRs as a reliable, clean, and scalable power source for AI-driven computer infrastructure.
Expected Results and Future Prospects
Digi Power X anticipates reviewing the results of the feasibility study with NANO Nuclear upon completion. DGXX expressed optimism regarding the potential of SMR deployment as a transformative solution for powering its data centers and supporting next-generation AI workloads.
