Digi Power X Inc. PP&E Disclosure
| Land and buildings(1) | Data miners | Equipment(1) | Leasehold improvement | Power plant in use(2) | Total | |||||||||||||||||||
| Cost | ||||||||||||||||||||||||
| December 31, 2023 | $ | 7,094,339 | $ | 31,895,779 | $ | 21,392,207 | $ | 1,079,542 | $ | 4,643,800 | $ | 66,105,667 | ||||||||||||
| Additions | 3,200,000 | 590,777 | 3,790,777 | |||||||||||||||||||||
| December 31, 2024 | 7,094,339 | 31,895,779 | 24,592,207 | 1,079,542 | 5,234,577 | 69,896,444 | ||||||||||||||||||
| Additions | 1,718,524 | 1,100,550 | 1,962,022 | 1,405,657 | 6,186,753 | |||||||||||||||||||
| Disposal | (14,041,665 | ) | (14,041,665 | ) | ||||||||||||||||||||
| December 31, 2025 | $ | 8,812,863 | $ | 18,954,664 | $ | 26,554,229 | $ | 1,079,542 | $ | 6,640,234 | $ | 62,041,532 | ||||||||||||
| Accumulated depreciation | ||||||||||||||||||||||||
| December 31, 2023 | $ | 103,928 | $ | 22,763,032 | $ | 7,148,323 | $ | 401,582 | $ | 327,447 | $ | 30,744,312 | ||||||||||||
| Depreciation | 387,290 | 8,733,406 | 5,913,455 | 105,318 | 368,920 | 15,508,389 | ||||||||||||||||||
| December 31, 2024 | 491,218 | 31,496,438 | 13,061,778 | 506,900 | 696,367 | 46,252,701 | ||||||||||||||||||
| Depreciation | 403,233 | 399,341 | 5,469,650 | 105,318 | 447,054 | 6,824,596 | ||||||||||||||||||
| Disposal | (14,041,665 | ) | (14,041,665 | ) | ||||||||||||||||||||
| December 31, 2025 | $ | 894,451 | $ | 17,854,114 | $ | 18,531,428 | $ | 612,218 | $ | 1,143,421 | $ | 39,035,632 | ||||||||||||
| Net carrying value | ||||||||||||||||||||||||
| As at December 31, 2024 | $ | 6,603,121 | $ | 399,341 | $ | 11,530,429 | $ | 572,642 | $ | 4,538,210 | $ | 23,643,743 | ||||||||||||
| As at December 31, 2025 | $ | 7,918,412 | $ | 1,100,550 | $ | 8,022,801 | $ | 467,324 | $ | 5,496,813 | $ | 23,005,900 | ||||||||||||
| (1) | During the year ended December 31, 2025, the Corporation made capital investments related to the development of its Tier III AI data centers segment (refer to note 20) and are included within property, plant and equipment. Depreciation is not recognized on the AI data center assets that are not yet available for their intended use. The carrying amount of these assets is $1,386,547. |
| (2) | At December 31, 2024, the Corporation had plant and equipment with a carrying amount of $4,538,210 that was temporarily idle due to maintenance and repairs. The Power Plant was brought back into service during January 2025. |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.