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0:00:02 – Announcer

Wall Street Unplugged looks beyond the regular headlines Heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

0:00:15 – Frank Curzio

Michelle Lamar, thank you so much for joining us on Wall Street, unplugged again. Good morning, how are you Good? So the last time we spoke was a little over two months ago and we talked about your company, DigiPower symbol, DGXX and the stock was actually trading under a dollar. Today it’s trading around $260, $270. It’s up a lot. It’s not the reason why I’m having you on just because your stock’s up. It’s up for significant reasons where a lot has happened over the past two months. What has happened? Explain to us and explain how you surprised at the investor interest, because things seem to go pretty well right now for you guys. 

0:01:09 – Michel Amar

Basically, we started to communicate with our investor base that we today is the number one AI servers in the world in terms of sales. I think they’re going to do about $45 billion and surpass the dev servers this year. We basically are in communication on a daily or bi-weekly basis with them and are developing our first platform, which we intend to operate by Q4 this year. Why it’s important, Frank, is we find that most of these projects are hyperscale and take three to five years. We developed the proprietary modular system called ARMS AI-ready modular solution system that we can scale it up, but start in a small scale and then be ready in a very short time period. So we should be operating by this year our first platform and scale it up to the full 55 megawatts allocation that we have in. 

0:02:05 – Frank Curzio

Alabama and I want to bring everyone in here. So, if you haven’t seen the last interview you with DigiPower transformed your company right. So you’re a Bitcoin miner, still a Bitcoin miner, which is a fantastic business, considering Bitcoin’s near its all-time highs. You’ve gotten into this business a very long time ago and saw the future. Now you’re seeing the future when it comes to AI, data centers, and now you’re transitioning a portion of the power that you own from tier one, because those assets are worth a lot but not worth nearly as much as if you’re transferring that power that you own into tier three, which could be worth up to 15x more, and you guys are sitting on lots of megawatts of power. 

I want to talk about the industry first, before we get really into your company and how you foresaw this, because even 12 months ago, 18 months ago, even six months ago, the people I talked to who helped build data centers, the people I talked to in the utilities and the power industry, when I look at the power and looking at the NVIDIA chips and how much power they’re going to take, even the next generations and the next generations, I will look in. Some estimates say it could be 200 gigawatts that we’re going to need by 2030. Some are saying over 300. What is this doing to the power landscape? What are you seeing? Personally, because transferring your business from that tier one to tier three, hyperscale, has put you right in the middle of one of the greatest growth trends in the world. 

0:03:17 – Michel Amar

We decided to change our symbol to reflect our overall strategy. We are a power company with two different, distinct visions. One is the combining to scale up the power infrastructure, which we did for the last eight years and put us in a very competitive age today, because we have no debt, 300 megawatt worth of power infrastructure and some of that power we operate as a Bitcoin miner. We also developed something very unique we acquired a combined cycle gas power plant, so we generate power and we have a license to buy and sell energy, so that put us in the energy business. And then the AI revolution that’s happening now put us in a very a sweet position, in the sense that we do not need to wait for our substation to be built PPA with the utilities to be signed up. We don’t have to wait for load studies that take two to three to five years. We are ready to go at once, and that put us in a very optimal situation. 

0:04:39 – Frank Curzio

So when you look at your operational footprint, you have Alabama right. You have capacity in Alabama of megawatts, also in two separate areas in New York, which is very, very difficult to get licensed. I mean, you know, talk a little bit more about that High barriers to entry where if people want to say, okay, we’re just going to come in and buy power, it’s not the easiest thing to do. You almost have to take over a company. But starting from scratch and looking at your power, where 100 megawatts your capacity is 200 megawatts of power, which is a lot of power that you guys have access to and own how difficult is it to get those licenses for someone to stay, like me, if I wanted to start from scratch. 

0:05:11 – Michel Amar

It’s quite difficult. You need to do a lot of studies that take years. So it has nothing to do with capital. The most capital ready to go. You won’t be able to buy time. The utilities are a very slow motion regulated agency that do not act fast. You know you have thousands of people online that initiated the load studies and you have to wait your turn and that can take anywhere from two to five years just to get a load study. Then, after the load study, you need to build a substation. That takes another two years and then you can build your data center. So capital is not the only factor in that business. You have to have the power-ready infrastructure. 

0:06:03 – Frank Curzio

Now let’s get into the details of Supermicro, a company I’m very familiar with. You know they had their problems accounting-wise a while ago. This has some of the best technology in the industry, right, talk about why you chose them, because not only the liquid cool technology, which I think it’s important to know, because that’s what hyperscalers are going for now, compared to air-cooled right, so they have the newest technology. But talk about using Supermicro because they’re able to construct this where you have 200 megawatts capacity and say 100, now you get scaled to 200. But to do it all at once is insane. But Supermicro, explain the process of how you’re able to do it, almost like building Legos, like these Lego blocks to add on, where now it’s not just you know doing this for hyperscalers or big utility companies. It allows a company like you to really participate and build these tier three assets. 

0:06:49 – Michel Amar

We came up with an AI modular, flexible system called ARMS that we developed with Supermicro. So the reason why we picked Supermicro besides the fact that they are the leader in that field, in the rack systems is that they have a very close relationship with NVIDIA. Therefore, that gives us the access to the latest chips, and the chips that we are starting with and acquiring are the B200. They are the latest, the most efficient chips today on the market. So we have very little competition. We’re not competing with this hyperscale data center that are processing data with the older chips like the H100 or H200. We are starting with the latest, most efficient chips. 

0:07:34 – Frank Curzio

Which is pretty amazing, right? So people see a smaller company don’t know that you own this power very high barriers of entry. Now I want to talk about your fundamentals, because usually a company I’ve been analyzing for 30 years when I see a company transition from one business model to the next, they usually take a step back right, one step back, two step forward and it’s great if they go to, like you know, a subscription based model. Whatever You’re going from a model that’s working great to a model that’s going to be working unbelievably great, right, I mean, bitcoin mining is still there for you guys. A lot of people believe Bitcoin is going to go a lot higher market we follow over 10 years now. When is this transition going to start? When is it actually already started? But when does transition into from the tier one to the tier three? You said by the end of this year. And how much power are we talking about off the start? Like, give us the timeframe for, like the end of the year and into next year, how this transition is going to work. 

0:08:22 – Michel Amar

So the transition is not taking away our growth for the mining. We do need the Bitcoin mining to scale up the power infrastructure and the energy contracts. The AI is leveraging the assets of the Bitcoin mining company, so one doesn’t prevent the other to grow, and it’s two different businesses in the sense that one megawatt of AI brings 10 to $12 million a year of revenues. It’s basically 20, 30 times more than Bitcoin mining, but the investment is as well, of course, in consequence correct. So we are leveraging our infrastructure. To give you an example, we plan to have three phases for Alabama. Phase one the initial platform this year, small scale, still relevant to our bottom line for 2026. Then we’re going to scale it up to 22 megawatts because we are ready with the substation, all the high voltage, everything is ready in terms of the power and we just have to acquire the chips and manufacture our arms model. And then 2027, we’ll scale up to the full 55 megawatt, which will be a substantial income stream. 

0:09:50 – Frank Curzio

So did you say 55 megawatt you’re gonna scale up to? That’s going to be for tier three, correct? Could you run us through the math on that to just show us if you’re looking at, because it is remarkable when I take a look at it. I’m going to take a look at it now. So when you’re looking at 15X, so it’s a million for tier one, you transform it over and that would be 15 million, and I was doing a 22 to 30 megawatts, but I think this is important for investors to realize. So when you’re going at 55 megawatts and you said by 2027, if he times that by 15 million, which is what they’re going for, you can even go conservative. You’re looking at 800 million, say, if it’s even 500 million, right, and we’re not even talking about the other 150, which is, say, a million dollars, 150 million dollars each. You’re looking at six, seven, eight, about 750 million in value. There. Your market cap is at 80 million. 

Why the disconnect? And it was at 40 million a while ago, below that. So people starting to realize like hey, this is a small company that is in this power revolution that so many of these other companies are really skyrocketing, but you guys are generating revenue. Your revenue is up 65% year over year because you’re generating so much revenue for Bitcoin mining. You’re trading at a value that’s one tenth the value of your competitors in Bitcoin mining, who are late, who are just saying that they’re going to get over to tier three, which you’ve been talking about 18 months ago and executing now. I mean, why still the disconnect? You think and are you feeling like more and more investors are starting to realize this and that’s why your stock’s going higher? 

0:11:12 – Michel Amar

I believe that the investors are starting to understand that we are geared to execute by announcing our collaboration and partnership with Supermicro. That gave us the credibility that was needed. Supermicro signed a $20 billion deal a few months ago. They are a very good partner. We’ve been working with them for months and we are leveraging their human resources engineering to set up the platform the first initial platform. So I believe that as we execute and start to operate, we will get motivation of the investor to invest and believe in our stock. 

So now we are really well positioned for that retrofit of Alabama. We have everything. We have the NVIDIA chips coming, we have the proprietary flexible arms unit coming and certified as a tier three to operate these chips and we have Supermicro to assist us in setting up that flexible tier three. Then all we have to do is copy and paste and scale up Financially. We will scale up through predictable income, therefore debt financing, so we don’t have a dilution of the shareholders. Of course, you know you have to remember that I’m one of the largest shareholders and I never sold one stock since. I invested about $8 million about eight years ago and I think that we have a tremendous value. We’re starting a new era and I believe that the upside for our company is huge. 

0:12:56 – Frank Curzio

And it’s interesting you say that too, because you know some people say we haven’t sold a share. You have to realize, you know, over the past eight years going through COVID, going through several like 2022, when AI really came I mean you say, focus on this understanding and being able to see the future, not just in Bitcoin getting in early as a Bitcoin miner but also now that these tier three assets, I guess I’ll ask you this question what about? I’m sure you can’t disclose, but I’m going to ask anyway Are you seeing interest from clients I don’t know if you could say that or not from tier three? I mean these guys. 

What I’m looking at, analyzing the power deals, the fact that Microsoft and some of these other guys are signing deals, just you know. You look at Three Mile Island. I mean, forget that it’s not going to open five years for nuclear right, and that’s if you get all the approval state, local and federal. They’re buying power 20 years out. They’re buying SMR technology which is not even available on scale yet and companies are trading at $10 billion valuations, like Okla, when they’re not going to generate revenue for three years. It just shows you the demand out there from these clients where they’re dying for power? Are they coming to you? Do they know you exist? Do you see that? Or you can’t really disclose any of that? If you can, it’s perfectly fine, but as an analyst, I’d like to know how to ask. 

0:13:59 – Michel Amar

So, Frank, a few months ago we publicly disclosed our joint request for grants with this company called Nano and Any Nano Nuclear. We requested grants from New York State to convert our gas turbines into SMRs. So it’s in motion. You know the future in the five to 10 years from now our data center via nuclear clean energy, SMR. We are already. We initiated that concept four or five months ago, we disclosed it and we already have the solution for that. We’re developing the solution. So this is tier three data center powered by clean energy. That’s our goal. 

0:14:45 – Frank Curzio

On a personal note, knowing the power statistics, are you nervous at all? Because when I look at power and I see you’re getting some of the latest chips from NVIDIA, when you’re looking at the VR chips, the next generation, which are specifically to liquid cool technology, Nvidia is quick to say, well, they’re 20x energy efficient. Okay, that’s partially right, but when you put in the rack system it’s increasing that electricity usage by 7x. Those are the next generation of chips that everybody wants right now. They’re even replacing some of the air cool with the liquid cool because these work better with those systems. 

But all the models I’m looking at are not factoring in the amount of electricity. The next generation, from two years for three years or four years, of those nvidia and even amd is starting to catch up. You know, when you look at how much gigawatts, which I mentioned earlier, are you nervous at all? You think we’re going to be okay with that power, or is it kind of? I mean, you’re right in the middle of it, which is great, but I was curious on a personal note, have you ever looked and said how are we going to have this much power to power all this AI data processing much more? 

0:15:47 – Michel Amar

Secondly, it’s kind of good news for our investment in the power plant. Our power plant is worth a lot of money today because of the demand in power. To give you an example this week we are not mining Bitcoin. We are selling energy at a very high profit the entire week because we’re on the East Coast and the grid needs us. We had a heat wave since yesterday, so so we are in a very unique position. We have an asset our power plant that’s worth much more than few years ago and because we have infrastructure and power in place, with utilities, these contracts are worth also much more than prior. So I’m not worried about the for us, about the access of electricity or power. 

We are well positioned. We have 300 megawatts. 60 megawatts are coming along From a load study. We started almost three years ago, so we’re going to be at 360 megawatts three years ago. So we’re going to be at 360 megawatts. 360 megawatts in terms of if you even use half of it, 180 in AI it’s a tremendous amount of business. Tremendous amount of business. So we are well positioned. I think that the chips for AI are, of course, energy hungry, but not to the scale of a Bitcoin mining. It’s a different concept. Bitcoin mining use a lot of more energy than AI. 

0:17:18 – Frank Curzio

Bringing everything back around. You know your last quarter. You reported, I think you know, near record revenue. It was 65% growth year over year. We’re not talking about small revenue. We’re looking at 9.3 million for the quarter, right? We’re not talking about small revenue. We’re looking at 9.3 million for the quarter, right. So say, you know, close to 10 million to 37, 38 million for the year on an annual basis, right On a run rate, on a company that’s trading what? At an $80 million market cap, you have a lot of cash. No-transcript. When I see things like this and I see Peter Lynch and that Peter Lynch, right, that Peter Lynch is one of the greatest value investors of all time investing. You know you’ll see value investors investing in lots of high growth technology stocks. But you know for him to be in your company I mean that’s got to be an honor for you to just to see that, and I’m sure you talk to him sometimes, right, correct? 

0:18:15 – Michel Amar

he’s been a very loyal investor, believed in the company and the future of the company and he’s long on the company. So we’re entering the most revolutionary category of business ever. Ai, for the next couple hundred years, are going to be the center of dollar allocation from anyone. This is where it’s all going. So I think we are at the startup of that revolution. We are well positioned as a company. We have a clear vision in terms of expansion and we are doers. We are executing this year, not in three years from now, not in five years. It’s not a project on paper. We’ve been building up data centers for the last eight years privately, then publicly, and now we are elevating to a higher standard and we are used to that because our power plant standard is similar or even higher than a tier three data center standard. So we are used to that environment. 

0:19:14 – Frank Curzio

Well, we are doers. That’s a great line, and I know you are. I know your investors are very happy. But just you know, it’s not just hey, we see a stock going up, it’s the execution that’s taking place in the future. You see the excitement and hopefully you’ll join us again to give us more updates in the future, because I know there’s probably gonna be lots of positive news going on down the line. So I really appreciate you joining us today, thank you. Thank you, Frank. 

0:19:33 – Announcer

Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money and your responsibility.