SCHEDULE: Digi Power X Major Shareholder Exits Position

Eleven Ventures LLC and its affiliates have significantly reduced their stake in Digi Power X Inc., fully divesting their holdings by July 7, 2025.

Summary

• Eleven Ventures LLC, Eleven Managers LLC, and Hartley Wasko filed an amendment to their Schedule 13G for Digi Power X Inc.
• As of June 30, 2025, the reporting persons beneficially owned 1,053,536 Subordinate Voting Shares, representing 2.6% of the outstanding class.
• This ownership included 139,900 shares held upon warrant exercise and 913,636 currently exercisable warrants.
• The filing reflects a disposition of shares by Eleven Ventures LLC between March 3, 2025, and June 30, 2025, including 3,113,636 Subordinate Voting Shares and an additional 2,060,100 shares from warrant exercises.
• Crucially, between July 1, 2025, and July 7, 2025, Eleven Ventures exercised its remaining 913,636 warrants and sold all resulting Subordinate Voting Shares.
• As of July 7, 2025, Eleven Ventures and its affiliates beneficially owned none of Digi Power X Inc.'s Subordinate Voting Shares.
• The percentage of class is based on 40,701,840 Subordinate Voting Shares outstanding as reported in the Issuer's Prospectus Supplement filed on July 23, 2025.

Sentiment

Score: 3

Explanation: The complete divestment by a significant institutional investor is a negative signal, indicating a lack of long-term confidence from that specific holder. While it's a passive filing, the action itself is bearish for the stock.

Negatives

• A significant institutional investor, Eleven Ventures LLC, has fully divested its entire stake in Digi Power X Inc. by July 7, 2025.
• The disposition involved 3,113,636 Subordinate Voting Shares and an additional 2,060,100 shares from warrant exercises between March 3, 2025, and June 30, 2025.
• The complete exit of a major shareholder can signal a lack of confidence in the company's future prospects.

Risks

• The complete divestment by a significant investor like Eleven Ventures LLC could lead to negative market sentiment and downward pressure on the share price.
• Loss of a large institutional holder may reduce liquidity for the stock.

Future Outlook

The filing does not provide any forward-looking statements or guidance from Digi Power X Inc. management, focusing solely on the change in beneficial ownership by Eleven Ventures LLC.

Industry Context

This filing reflects a significant change in the ownership structure of Digi Power X Inc. due to an institutional investor's complete exit. While the filing does not provide broader industry context, such divestments can sometimes occur due to shifts in investment strategies, changes in market conditions, or specific concerns about the company or its sector. Without further information from the company, it is difficult to ascertain the specific drivers behind this divestment in relation to broader industry trends.

Stakeholder Impact

• Shareholders: May experience negative sentiment and potential downward pressure on share price due to the significant divestment by an institutional investor.
• Company Management: May face questions regarding the reasons for the institutional investor's exit and its potential impact on investor confidence.

Key Dates

Recommendation

The complete divestment by a significant institutional investor like Eleven Ventures LLC, which previously held a substantial stake and warrants, signals a strong lack of confidence in Digi Power X Inc.'s future prospects from a sophisticated market participant. This action could lead to negative market sentiment and downward pressure on the stock price, making it prudent for investors to consider selling their holdings.

Keywords

Digi Power X Inc., Eleven Ventures LLC, Schedule 13G, Beneficial Ownership, Share Disposition, Warrants, Subordinate Voting Shares, Institutional Investor, Shareholder Exit