TORONTO, Sept. 07, 2022 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost” or “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative US-based Bitcoin (“BTC”) mining company, is pleased to provide unaudited comparative BTC production results for the month ended August 31, 2022, along with an operational update. All monetary references are expressed in USD unless otherwise stated.
Production highlights for August 2022
- Mined 67.97 BTC resulting in a total holding of 176.61 BTC at the end of August valued at approximately $3.54 million based on a BTC price of $20,050 as of August 31, 2022.
- Ethereum (“ETH”) holdings of 1,000.89 ETH at the end of August valued at approximately $1.56 million based on an ETH price of $1,554 as of August 31, 2022.
- Total holding value of digital assets, consisting of BTC and ETH, of approximately $5.10 million as of August 31, 2022.
- To avoid equity dilution for shareholders, management sold a portion of BTC production in August to finance energy costs.
- The company remains debt-free from 31 August 2022.
- By continuing its support to the electricity needs of the local community, the company reduced its total energy consumption during the month of August 2022, operating mainly during off-peak hours.
Year-over-year monthly comparison
The company mined approximately 23.90 more BTC in August 2022, compared to August 2021, representing an increase of approximately 54.2%.
Figure 1. Year-over-year Monthly BTC production
| Aug-22 | Aug-21 | MoM increase | |||||
| Mined BTC | 67.97 | 44.07 | 23.90 | ||||
| Approximate BTC value | $20,050 | $47,167 | ($27,117 | ) | |||
| Production value | $1,362,799 | $2,078,650 | ($715,851 | ) | |||
Year-over-year YTD comparison
The company extracted approx. 184.36 more BTC on an annualized basis as of August 31, 2022, compared to the same period ending August 31, 2021, representing an increase of approx. 47.6%.
Figure 2. Year-over-year YTD BTC production
| YTD 2022 | YTD 2021 | YTD Increase | |||||
| Mined BTC | 571.80 | 387.45 | 184.36 | ||||
| Approximate BTC value | $20,050 | $47,167 | ($27,117 | ) | |||
| Production value | $11,464,590 | $18,274,854 | ($4,930,758 | ) | |||
Development of sites in Alabama
Digihost is pleased to announce that during the month of August, it received Public Service Commission approval for an economic rider rate discount. This rebate, combined with the lower direct energy costs it has negotiated with Alabama Power, will result in an overall reduction in Digihost’s operating costs. The Alabama Power agreements provide the company with highly competitive power costs in today’s inflationary environment, further reinforcing Digihost’s strategic decision to expand and diversify operations into Alabama.
The company continues to progress its facility development and construction efforts in Alabama on schedule and on budget. Digihost is building out the necessary infrastructure to give the property a power capacity of 22 MW during the fourth quarter of 2022 and a total of 55 MW by the end of the first quarter of 2023.
Cancellation of stock options
The company also announces that it and certain executives and board members of the company have agreed to cancel a total of 1,149,998 share options (options for 166,666 shares that were previously exercisable at USD 2.88 per share, options for 266,666 shares that were previously exercisable at $3.75 per share. , options with respect to a total of 558,333 shares that were previously exercisable at $7.47 per share, and options for 158,333 shares that were previously exercisable at $4.20 per share). The canceled options were voluntarily surrendered by their holders without consideration.
Allocation of incentive shares
The Company also plans to provide an incentive grant pursuant to a stand-alone award agreement outside of the Company’s equity incentive plans as an incentive material to the Company’s Vice President of Operations that constitutes employment with the Company. The incentive grant was approved by the company’s board and consists of the issue of 19,391 subordinate voting shares in the company (“Incentive shares”) at an assumed price of C$6.54 per incentive share. The issuance of the Inducement Shares is subject to regulatory approval, including the TSX Venture Exchange.
Early warning
The Company announces that Michel Amar, CEO of the Company, has submitted an early warning report with respect to his holdings in the Company as a result of a purchase of shares in the Company. On September 2, 2022, Mr. Amar acquired a total of 55,344 shares of the Company through a series of acquisitions conducted through NASDAQ’s facilities for an aggregate consideration of US$39,328.55 (the “Series of Acquisition“).
Immediately prior to the series of acquisitions, Amar directly or indirectly owned 4,803,928 subordinate voting shares in the company (“SV shares“) and 3,333 proportionate voting shares in the company (“PV shares”), or approximately 17.16% of the then issued and outstanding SV shares on an undiluted basis and approximately 19.09% on a partially diluted basis. After the acquisition series, Amar directly or indirectly owns 4,859,272 SV shares and 3,333 PV shares, or approx. 17.36% of the issued and outstanding SV shares on an undiluted basis and approx. 19.28% on a partially diluted basis. Since the filing of Mr. Amar’s previous Early Warning Report on March 1, 2021, the Company’s capital has increased and Mr. Amar’s holdings in the Company’s securities have decreased by more than 2% of the issued and outstanding SV Shares as a result of dilution.
Mr. Amar reviews his holdings from time to time and may increase or decrease his position as future circumstances warrant. This news release is issued in accordance with National Instrument 62-103 – The Early Warning System and Related Takeover Bids and Insider Reporting Issues in connection with the submission of an early warning report dated 7 September 2022. The warning report is archived on the System for electronic document analysis and review (“CEDAR”) under the Company’s issuer profile on
About Digihost
Digihost is a growth-oriented blockchain technology company that primarily focuses on BTC mining. Through its self-mining operations and joint venture agreements, the company currently hashes at a rate of approximately 650 PH/s.
All hosting fees and profit sharing in joint ventures are treated as production costs 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 its regulatory services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Except for the statements of historical fact, this press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as of the date of this press release and are covered by safe harbors under Canadian and U.S. securities laws. Forward-looking information in this press release includes information about 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 could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: future capital needs and uncertainty about additional financing, including the company’s ability to use the company’s offering program in the market. (“ATM Programme”) and the prices at which the Company can sell securities in the ATM Programme, as well as capital market conditions in general; share dilution resulting from the ATM program and from other share issues; risks related to the strategy of maintaining and growing Bitcoin holdings 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 payable in Bitcoin; continued effects of the COVID19 pandemic could 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 board approvals being received on time, or at all; the acquisition of the North Tonawanda, New York facilities closes on time, or at all; the ability to access additional power from the local power grid; a decline in cryptocurrency prices, volume of transaction activity or generally the profitability of cryptocurrency mining; further improvements in profitability and efficiency may not be realized; the digital currency market; the Company’s ability to mine 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 material adverse effect on the Company’s business; the volatility of digital currency prices; and other related risks as more fully described in the Company’s annual information form and other documents disclosed in the Company’s filings 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 cryptocurrency mining profitability (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 holdings as needed; historical prices of digital currencies and the Company’s ability to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical power sources to operate its cryptocurrency mining assets; the negative impact of regulatory changes in the energy regimes in the jurisdictions in which the company operates; the ability to comply with Digihost’s dividend policy and the timing and amount of dividends based on, among other things, the company’s operating results, cash flow and financial condition, Digihost’s current and anticipated capital needs, 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 events 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, accordingly, such information should not be relied upon due to the inherent uncertainty therein.
