Digihost Announces Deal With Northern Data AG Acquiring 10,000 Bitcoin Miners and Increasing Hashrate by 925PH
12 May 2021 - 3:30PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that the Company has signed a definitive purchase
agreement (the “
Purchase Agreement”) to acquire
approximately 10,000 of the most technologically advanced,
high-performance Bitcoin (“
BTC”) miners (the
“
Miners”), that will increase the Company’s
current hashrate by approximately 925PH to 1.145EH, with delivery
of the Miners to occur between August and December of this year.
The Miners have been sourced from Northern Data
AG (“Northern Data”) (ISIN: DE000A0SMU87; OTC:
NDTAF), a leading infrastructure supplier for BTC mining and other
high-performance computing (“HPC”) infrastructure
solutions. Pursuant to the terms of the Purchase Agreement, the
Company has concurrently entered into a hosting agreement (the
“Hosting Agreement”) with Northern Data in
connection with the Miners, whereby Northern Data will provide
services to the Company including the installation and hosting of
the Miners in proprietary pre-manufactured performance optimized
mobile data centers to be located at Digihost’s company-owned
facility. Both parties are in advanced discussions to expand the
Purchase Agreement beyond the initial 10,000 Miners up to a total
of 30,000 miners, giving Digihost the potential to increase its
current hashrate to approximately 3.0EH.
Under the terms of the Hosting Agreement,
Digihost will provide power to the operation from its recently
acquired 60MW power plant (press release – March 24, 2021), and
Northern Data will be responsible for supplying and maintaining the
dedicated data centre infrastructure. To the extent possible, the
Company intends to source and utilize renewable natural gas for the
operations of its power plant, Digifactory1, and also engage in the
practice of acquiring renewable energy certificates, all in line
with the Company’s objective to mitigate its carbon footprint. The
net revenue generated from the BTC mining operation, after paying
Digihost a very competitive power rate, will be allocated between
Digihost and Northern Data according to a fixed distribution
formula.
Michel Amar, the Company’s CEO, stated: “We are
extremely pleased with this significant transaction between
Digihost and Northern Data to acquire approximately 10,000 new
Bitcoin miners with over 925PH of hashing power, as well as the
hosting arrangement which will allow us to benefit from Northern
Data’s best in class HPC technology and services as well as
securing access to miners in the current sold-out market
environment. Accelerating the Company’s combined hashrate to more
than 1.145EH by the end of this year, which could result in
approximately US$80 million of operating profit in 2022, based on
current Bitcoin metrics, is a significant accomplishment for
Digihost as we continue to evolve as a leader in the cryptocurrency
mining sector.”
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 200PH with potential to expand to a rate of 3EH upon the
completion of the previously announced acquisition of a 60MW power
plant.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive
Officer T: 1-818-280-9758Email: 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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