Digihost announces Y / Y 129% increase in quarterly Bitcoin production and provides operational update

This press release constitutes a “designated news release” in connection with the company’s prospectus supplement dated 4 March 2022 to its short-form base shelf prospectus dated 23 February 2022.

TORONTO, July 5, 2022 (GLOBE NEWSWIRE) – Digihost Technology Inc. (“Digihost“or”Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative US-based Bitcoin (“BTC”) Mining companies, are pleased to deliver unaudited comparative BTC production results for the month and quarter ended June 30, 2022, combined with an operational update. All money references are expressed in USD unless otherwise stated.

Production highlights for June 2022

• Recovered 72.18 BTC, resulting in a total inventory of 293.30 BTC at the end of June valued at approximately $ 5.8 million based on a BTC price of $ 19,785 as of June 30, 2022.

• Ethereum (“ETH”) – a stock of 1,000.89 ETH at the end of June valued at approximately $ 1.07 million based on an ETH price of $ 1,067.29 as of June 30, 2022.

• Total value of digital assets, consisting of BTC and ETH, of approximately $ 6.87 million as of June 30, 2022. In addition, the company had cash of approximately $ 5 million and derivative instruments of approximately $ 500,000 as of June 30, 2022. Cash and cash and cash equivalents assets as of June 30, 2022, was approximately $ 12.4 million.

• On June 14, 2022, the company repaid its $ 10 million loan facility by making a portion of its BTC holdings. The company currently has no debt.

Year-over-year quarterly comparison

The company recovered approximately 141.71 more BTC in Q2 2022, compared to Q2 2021, which represents an increase of approximately 128.9%. Using the closing prices for BTC on June 30, 2022 and June 30, 2021 (from CoinDesk), the value of the company’s BTC extracted in Q2 2022 increased by approximately $ 1.1 million, or 29% compared to Q2 2021.

Figure 1. Year-over-year Quarterly BTC production

The story continues

Quarter-over-quarter comparison

The company recovered a further 65.85 BTC during the second quarter of 2022 compared to the first quarter of 2022, which represents an increase of 35%.

Figure 2. Quarter-over-quarter BTC production

Operational update

Digihost is pleased to announce that planning is well underway on the company’s new Alabama website (see Digihost’s news releases dated June 14 and June 22, 2022) with mining scheduled to begin in Q4. Based on power rates currently being negotiated by management with Alabama Power, Digihost estimates that its operational breakeven point will be at a BTC price of approximately $ 12,000. The company’s relocation to Alabama and the opening of a new headquarters in Houston, Texas earlier this year are milestones in line with Digihost’s strategic plan to diversify jurisdictional risk.

Although Digihost’s operations are currently located in Buffalo and North Tonawanda, the company does not intend to open any new mining facilities in New York State (“NYS”). Due to the recent significant increase in energy costs in NYS, the company expects to limit operations during rush hour to current BTC prices. In addition, Digihost will continue its practice of drawing less power from the grid when consumer demand periodically increases due to hot weather conditions expected over the next few months.

In the current inflation environment, management has introduced additional internal control measures to ensure compliance with its aggressive cost control program. Zero-based budgeting is carried out line by line regardless of expenditure category. This cost control program has already resulted in material savings.

Don Christie, Chief Operating Officer, commented: “We are pleased to report on our progress in diversifying our operations on a jurisdictional basis. We will continue this strategy as we continually monitor changes in the political environment in which our industry operates. I would also like to thank our employees to support the implementation of our cost control program as we work through this challenging time for our industry and the economy as a whole.I am convinced that as a result of these cost savings and further steps we have taken to strengthen our balance sheet, Digihost come out of this inflation period as a stronger, more disciplined and profitable company. “

About Digihost

Digihost is a growth-oriented blockchain technology company that primarily focuses on BTC mining. Through its self-extraction operations and joint venture agreements, the company currently hashes at a speed of approximately 650 PH / s.

All host fees and jointly controlled profit sharing are treated as operating expenses in the company’s consolidated accounts.

For further information, please contact:

Digihost Technology Inc.
www.digihost.ca
Michel Amar, CEO
T: 1-818-280-9758
Email: [email protected]

Warning
Trading in the company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or rejected the information here. Neither the TSX Venture Exchange nor the regulatory service provider (as this term is defined in the TSX Venture Exchange Guidelines) accepts responsibility for the adequacy or accuracy of this release.

Future-oriented statements
Apart from the statements of historical facts, this press release contains “forward-looking information” and “forward-looking statements” (collectively “forward-looking information”) which are based on expectations, estimates and estimates as of the date of this press release and are covered by safe havens under Canadian and US securities laws. Forward-looking information in this press release includes information on potential further improvements in profitability and efficiency across mining operations including, as a result of the company’s expansion efforts, the potential for the company’s long – term growth, and the company’s business goals and objectives. Factors that may cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: future capital requirements and uncertainty about additional financing, including the company’s ability to use the company’s offering program on the market. (The “ATM Program”) and the prices at which the Company may sell securities in the ATM Program, as well as capital market conditions in general; share dilution as a result of the ATM program and from other share issues; risks associated with the strategy of maintaining and increasing the Bitcoin portfolio and the impact of weakened Bitcoin prices on working capital; regulatory and other unforeseen issues that prohibit us from declaring or paying dividends to our shareholders to be paid in Bitcoin; continued effects of the COVID19 pandemic may have a material adverse effect on the company’s performance as supply chains are disrupted and prevent the company from operating its assets; approval by the Public Service Commission or other regulatory or regulatory approvals received in a timely manner, or at all; the acquisition of the facilities in North Tonawanda, New York closes on time, or at all; the ability to access additional power from the local power grid; a decline in cryptocurrency pricing, volume of transaction activity or, in general, the profitability of cryptocurrency mining; further improvements in profitability and efficiency may not be realized; the digital foreign exchange market; the company’s ability to extract digital currency on the cloud; The Company may not be able to profitably liquidate its current digital currency holdings, or at all; a decline in digital currency prices could have a significant negative impact on the company’s operations; the volatility of digital currency prices; and other related risks as more fully described in the Company’s annual information sheet and other documents disclosed during the Company’s registrations at www.sedar.com. The forward-looking information in this press release reflects the company’s current expectations, assumptions and / or beliefs based on information available to the company. In connection with the forward-looking information in this press release, the company has made assumptions about: current profitability in cryptocurrency mining (including pricing and volume of current transaction activity); profitable use of the company’s assets going forward; the company’s ability to profitably liquidate its digital currency as needed; historical prices of digital currencies and the company’s ability to extract digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical power sources to operate their cryptocurrency mining values; the negative effect of regulatory changes in the energy regimes of the jurisdictions in which the company operates; the ability to follow Digihost’s dividend policy and the time and quantity of dividends based on, among other things, the Company’s operating results, cash flow and financial condition, Digihost’s current and expected capital requirements, and general business conditions; and there will be no regulation or law preventing the company from conducting its business. The company has also assumed that no significant incidents occur outside the company’s normal operations. Although the company believes that the assumptions contained in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and consequently one should not rely on such information due to the inherent uncertainty in it.