Digihost Acquires 700 S17+ 76TH Bitcoin Miners for Immediate Delivery
29 March 2021 - 10:00PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce the acquisition of 700 Bitmain S17+ 76TH miners for a
total purchase price of US$4.025 million, that would increase the
Company’s hashrate by 50PH, or approximately 20% in the second
quarter of 2021. The Bitmain S17+ miners are scheduled for delivery
in early April and will be deployed immediately.
The addition of the 700 Bitmain S17+ miners,
based on the current price of Bitcoin (“BTC”) and
level of mining difficulty, would increase the Company’s monthly
mined BTC by approximately 9 BTC, which would translate to an
additional US$400,000 of operating profit per month. The new miners
will be installed at the Company’s existing mining facility in
Upstate New York.
Michel Amar, the Company’s CEO, stated: “We
continue to aggressively pursue every new opportunity that aligns
with our goal to expand operations through the strategic
acquisition of Bitcoin miners and low-cost sources of clean energy.
The acquisition and immediate deployment of these new miners is the
first in, what we expect to be, many new acquisitions going
forward. We are excited to implement our plan to utilize the
expanded 3EH hashing capacity from our recently announced
acquisition of a 60MW power plant (press release: March 24, 2021),
where it is expected that the Company’s energy cost would be
further reduced by up to 40%.”
The total purchase price of US$4,025,000 will be
comprised of cash consideration of US$2.975 million and issuance to
the vendor of 533,781 common shares of the Company with a deemed
value of US$1,050,000 (CAD$1,329,114 (CAD$2.49 per share)). The
securities issuable in connection therewith will be subject to a
statutory four month and a day hold period, and will be subject to
TSX Venture Exchange and all required regulatory approvals.
About Digihost Technology Inc.
Digihost Technology Inc. is a growth-oriented blockchain technology
company primarily focused on Bitcoin mining. The Company's mining
facilities are located in Upstate New York, and are equipped
with 78.7 MW of low-cost power with the option to expand to 102MW.
The Company is currently hashing at a rate of 190PH with potential
to expand to a rate of 3EH.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief
Executive Officer Email: michel@digihost.ca
Cautionary Statement
Trading in the securities of the Company should
be considered highly speculative. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein. Neither the TSX
Venture Exchange nor its Regulation 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 news release contains “forward-looking information” within the
meaning of the applicable Canadian securities legislation that is
based on expectations, estimates and projections as at the date of
this news release. “Forward-looking information” in this news
release includes information about potential further improvements
to profitability and efficiency across mining operations including
as a result of acquisitions of equipment and infrastructure,
potential for the Company’s long-term growth, and the business
goals and objectives of the Company. Factors that could cause
actual results to differ materially from those described in such
forward-looking information include, but are not limited to: the
ability to obtain regulatory approval for and complete acquisitions
of equipment and infrastructure on the terms as announced or at
all; the ability to successfully integrate the acquisitions of
equipment and infrastructure on an economic basis or at all;
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; a
decrease in cryptocurrency pricing, volume of transaction activity
or generally, the profitability of cryptocurrency mining; further
improvements to profitability and efficiency may not be realized;
the digital currency market; the Company’s ability to successfully
mine digital currency on the cloud; the Company may not be able to
profitably liquidate its current digital currency inventory, or at
all; a decline in digital currency prices may have a significant
negative impact on the Company’s operations; the volatility of
digital currency prices; and other related risks as more fully set
out in the Annual Information Form of the Company and other
documents disclosed under the Company’s filings at www.sedar.com.
The forward-looking information in this news release reflects the
current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about: the current
profitability in mining cryptocurrency (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 inventory as required; historical
prices of digital currencies and the ability of the Company to mine
digital currencies on the cloud will be consistent with historical
prices; and there will be no regulation or law that will prevent
the Company from operating its business. The Company has also
assumed that no significant events occur outside of the Company's
normal course of business. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty
therein.
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