Digihost Announces Y/Y YTD 45% Increase in Bitcoin

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, Dec. 02, 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 November 30, 2022, along with an operational update. All monetary references are expressed in USD unless otherwise stated.

Production highlights for November 2022

  • Mined 61.32 BTC, resulting in a total holding of 98.38 BTC at the end of November worth approximately $1.69 million based on a BTC price of $17,169 as of November 30, 2022.
  • Ethereum (“ETH”) holdings of 800.89 ETH at the end of November worth approximately $1.04 million based on an ETH price of $1,296 as of November 30, 2022.
  • Total value of digital assets, consisting of BTC and ETH, of approximately $2.73 million as of November 30, 2022. In addition, the company had cash of approximately $2.62 million at the end of November. Cash and liquid assets as of 30 November 2022 amounted to approx. USD 5.35 million.
  • Consistent with management’s commitment to avoid equity dilution for its shareholders, the company sold a portion of its BTC production during November to fully fund energy costs.
  • The company’s mining operations continue to remain cash flow positive.
  • Digihost also remains debt-free except for approximately $1 million in mortgage debt secured by the Alabama facility.

Year-over-year YTD comparison

On an annual basis, the company has extracted approx. 239.33 more BTC as of November 30, 2022, compared to November 2021, representing an increase of approx. 45%.

Figure 1. Year-over-year YTD BTC production

YTD 2022 YTD 2021 YTD Increase
Mined BTC 775.30 535.98 239.33
Approximate BTC value $17,169 $57,005 ($39,837 )
Production value $13,311,126 $30,553,540 ($17,242,414 )

Custody services for digital currencies

As a result of the potential contagion from the recent collapse of FTX, the company made the decision to move a majority of its digital currencies to an offline cold storage wallet to better secure its assets. This change in custody practice is in accordance with the company’s risk management strategy in today’s market environment.

North Tonawanda Power Plant Acquisition Update

The Company continues to move forward with final documentation and approval requirements related to Digihost’s purchase of a 60 MW power plant in North Tonawanda, NY (“NT“). Management expects this transaction to close in the first quarter of 2023, giving the company additional data capacity of approx. 1.04 EH based on a power generation rate of approx. 50 MW from the plant.

Combined with Digihost’s current operations, the total data capacity from the Company’s operations in the State of New York (“NY”) is estimated to be approximately 1.7 EH.

Development of sites in Alabama

Phase 1 development in Alabama is proceeding on schedule and on budget, with mining equipment testing beginning in December. Phase 1, scheduled for completion in Q1 of 2023, will provide the company with 22 MW of power capacity, resulting in additional mining capacity of approximately 550 PH.

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.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *