Digi Power X arrives at the end of the week carrying the most striking tension in its short history as a public company: a transformational contract announcement that sent the stock up 61% in five days, while the company's own President was selling shares at every step of the climb.
The catalyst landed on May 5. Digi Power X signed a Master Services Agreement with AI chip maker Cerebras Systems to colocate a 40-megawatt AI data centre campus in Columbiana, Alabama. The initial 10-year term is valued at roughly $1.1 billion, with total potential contract value reaching $2.5 billion inclusive of renewal terms. The stock closed at CAD $6.98 on May 5, up 33% that session alone, extending a monthly gain of 133%. The deal reframes the company's profile entirely — from a small-cap software play to a named infrastructure partner in the US AI buildout.
Against that backdrop, the insider activity is hard to ignore. This is a story of divergence between the company's public narrative and its executive behaviour. President Alec Amar sold 27,500 shares on May 1 at CAD $3.56 — four days before the Cerebras announcement moved the stock into the $6-plus range. He also sold 25,700 shares on April 8 and another 1,800 on April 1. Across the last 90 days, net insider activity registers as a net positive on paper — the CEO and other officers received large share awards in February — but the open-market disposals from the President are a consistent pattern through March, April, and into May. The February awards to Michel Amar (Chairman/CEO, 166,667 shares) and Alec Amar (133,333 shares) were non-cash grants, not purchases, so the directional signal from the person closest to daily operations is a string of sells into a rising tape.
Institutional ownership offers a contrasting signal. Several known active managers built meaningful positions as of end-2025: Vennlight Capital Management initiated with 1.75 million shares, Davidson Kempner added 1.22 million, and Jane Street took on 1.36 million new shares. Renaissance Technologies added 540,801 shares. Geode Capital Management reported 560,749 new shares as recently as April 30. The ownership mix — quant funds, market makers, and at least two multi-strategy hedge funds all buying into year-end — suggests the institutional bid was in place well before this week's catalyst.
The borrowing market is quiet, which matters here. Short interest is negligible — just 0.17% of the float, a level that makes the short-side story largely irrelevant regardless of direction. The cost to borrow has edged up to 2%, from about 1.7% a week ago, but that remains low and reflects little conviction from active short sellers. Borrow availability remains loosely supplied relative to the short base. The ORTEX short score at 45.5 is middling — neither a squeeze setup nor a crowded short. Availability is tighter than it was earlier in April, when utilization of the lending pool was running in the low-to-mid 50s; it hit 76.6% on May 5, the highest reading in at least six weeks. That is still well below the 52-week peak of 87.8%, suggesting no acute borrow stress. Shorts are watching the stock, but not piling in yet.
Peers moved sharply this week too, which provides useful context. CIFR rose 28% on the week and IREN 23%. HIVE added 23%. The broader crypto-mining and AI infrastructure cluster — CLSK, BTBT, EXOD — all gained double digits. DGX outperformed the cohort by a meaningful margin, which isolates the Cerebras deal as the stock-specific driver rather than a sector-wide lift.
Earnings are scheduled for May 14. The two most recent earnings events produced a 1-day move of +12.4% and a 5-day follow-through of +9.7% in March, and a 1-day move of -2% followed by a 5-day gain of +16.4% in April. With the stock already up 133% over the past month and trading at a price nearly double where the President was selling a week ago, the May 14 print becomes the first opportunity for management to quantify how — or whether — the Cerebras contract flows into forward financials.
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