This press release constitutes a “designated news release” in connection with the company’s prospectus supplement dated March 4, 2022 to the short form base shelf prospectus dated February 23, 2022.
TORONTO, Oct. 4, 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 and quarter ended September 30, 2022, along with an operational update. All monetary references are expressed in USD unless otherwise stated.
The company is pleased to report that it mined approximately 591 BTC in the first nine months of 2022, exceeding the entire 2021 BTC production by approximately 14%.
Production highlights for September 2022
- Mined 69.84 BTC, resulting in a total holding of 160.86 BTC at the end of September valued at approximately $3.13 million based on a BTC price of $19,432 as of September 30, 2022.
- Ethereum (“ETH”) holdings of 1,000.89 ETH at the end of September valued at approximately $1.33 million based on an ETH price of $1,328 as of September 30, 2022.
- Total holding value of digital assets, consisting of BTC and ETH, of approximately $4.46 million as of September 30, 2022. Additionally, the Company had cash of approximately $3.0 million as of September 30, 2022. Cash and Liquid Assets as of September 30, 2022. September, 2022 amounted to approximately $7.46 million.
- To avoid equity dilution for shareholders, management sold a portion of BTC production during September to finance energy costs.
- The company remains debt-free as of 30 September 2022.
- By continuing its support of the electricity needs of the local community, the company reduced its total energy consumption through the 3rd quarter of 2022, operating mainly during off-peak hours.
Year-over-year monthly comparison
The company mined approximately 32.17 more BTC in September 2022, compared to September 2021, representing an increase of approximately 85%.
Figure 1. Year-over-year Monthly BTC production
| Sep-22 | Sep-21 | MoM increase |
||
| Mined BTC | 69.84 | 37.67 | 32.17 | |
| Approximate BTC value | $19,432 | $43,791 | ($24,359) | |
| Production value | $1,357,131 | $1,649,607 | ($292,476) | |
Year-over-year quarterly comparison
The company mined an additional 69.76 BTC during Q3 2022 compared to Q3 2021, representing a quarterly increase of 52% year-over-year.
Figure 2. Quarter-over-quarter BTC production
| Q3 2022 | Q3 2021 | YoY Increase |
||
| Mined BTC | 202.78 | 133.02 | 69.76 | |
| Approximate BTC value | $19,432 | $43,791 | ($24,359) | |
| Production value | $3,940,421 | $5,825,079 | ($1,884,658) | |
North Tonawanda Power Plant Acquisition Update
Digihost is pleased to announce that it has received approval from the New York Public Service Commission for the acquisition of the 60 MW power plant in North Tonawanda that was originally announced by the company on March 24, 2021. Digihost is rapidly proceeding with other closing matters to complete the purchase of the power plant in the 4th quarter of 2022.
With the power plant running at 50 MW, the company will be able to increase its current operating capacity by approximately 150%, increasing Dighost’s hash rate to approximately 1.6 EH.
Development of sites in Alabama
The Company is pleased to announce that it is continuing to progress the Phase 1 development and construction work in Alabama on schedule and on budget. Digihost is building 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. Completion of the phase 1 building will give the company approx. 550 PH additional operating capacity.
During Q3 2022, Digihost 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 the company’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.
North Carolina Extension
As previously disclosed, the company announced earlier this year that it acquired 25 acres of land in North Carolina and will develop it for use in Q3 or Q4 of 2023 with a request to award up to 200MW of power.
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; development of additional facilities to expand operations in Alabama may not be completed on the timelines the Company expects, 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 pricing, 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.
