DGXX enters the first week of June with a freshly announced $35 million commitment to purchase Nvidia's next-generation Vera Rubin GPU platform — a deal that dominated headlines on June 3 and pulled the stock sharply off its recent highs, even as the underlying short positioning is quietly easing.
The catalyst is hard to ignore. Digi Power X announced it will deploy $35 million toward Nvidia Vera Rubin hardware to expand its NeoCloudz GPU-as-a-Service operation. The stock had already more than doubled over the prior month — up 115% — before pulling back 3% on June 2 alone, and a further 2% across the week. The parallel US Nasdaq listing (DGXX) moved almost in lockstep, off 3% on the day and nearly 3% on the week, confirming this is company-specific noise rather than sector drift. By contrast, HUT gained 18% on the week and KEEL jumped nearly 20%, suggesting the broader crypto-power-compute cohort remained buoyant — making DGXX's relative underperformance stand out.
The short book on DGXX has been retreating. SI now runs at 6.2% of the free float, down from a peak near 7.6% in late May. Short interest on the NEOE-listed DGX vehicle is negligible — just 0.14% of float — and continues to fall. On the Nasdaq side, availability has loosened dramatically. After hitting its tightest point of the past year at 25.6% on May 15 — meaning fewer than one share was available to borrow for every three already shorted — the lending market has opened back up. Availability now reads 200%, roughly back to levels seen in late April, suggesting shorts have returned stock and the squeeze pressure of mid-May has dissipated. Cost to borrow has also unwound. It was nearly 2% in late April, peaked again at 1.97% on May 7, and has now fallen to just 0.89% — the lowest level in the 30-day window. The ORTEX short score of 41.9 sits in the lower half of the 0-100 range and has trended down over the past two weeks from 45.3 on May 21. That composite tells a consistent story: short sellers are backing away, not adding.
The institutional register adds some texture. Citadel Advisors built a position of 3.55 million shares, adding 3.36 million in the most recent reported period through May 5 — one of the most aggressive single-holder builds on the cap table. Vennlight Capital added 1.17 million shares through March. These moves sit against a backdrop where the President, Alec Menachem Amar, sold shares across three transactions in April and May at prices ranging from C$2.25 to C$3.56 — well below the current CAD 10.86 — capturing gains from the earlier part of the rally. The net 90-day insider figure looks positive in share terms due to February awards to the CEO, CFO, and directors, but the cash-sale pattern from the President is the more telling behavioural signal.
The earnings history carries a useful data point. Q1 2026 results reported on May 15 delivered the company's first AI-linked revenue and closed with $125 million in cash on the balance sheet — though the company still posted a net loss of US$4.7 million for the quarter. The stock moved 5.7% higher the day after the print and held those gains over the following five days, ending the week 9.7% above the pre-earnings close. The next scheduled event is August 14. Valuation data is stale — the most recent EV figure dates to December 2025 — so multiples-based framing is not reliable here and has been omitted.
A class action lawsuit filed May 29 adds a further overhang the $35 million Nvidia commitment does not resolve on its own. With shorts exiting, availability loose, and the borrow cost near its recent floor, the setup heading into summer is less about squeeze dynamics and more about whether the Vera Rubin GPU commitment — and the August earnings it feeds into — justifies the stock's 115% one-month run.
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