Digihost’s Reports 671% Increase ($3.4m) in Y/Y Monthly Bitcoin Production for November
01 December 2021 - 11:00PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; Nasdaq: DGHI), an
innovative North American based Bitcoin self-mining company, is
pleased to provide an unaudited Bitcoin (“
BTC”)
production update for the month ended November 30, 2021. All
amounts are expressed in USD unless otherwise indicated.
Production Highlights for November
2021:
- Produced 69.01 BTC during the month
and received 10.67 BTC as proceeds for the sale of older generation
unutilized miners, increasing total holdings to 570.95 BTC valued
at approximately $32.7 million as of November 30, 2021 based on a
BTC price of $57,350.
- Total Ethereum
(“ETH”) holdings of 1,000.89 ETH valued
approximately $4.8 million as at November 30, 2021 based on an ETH
price of $4,750.
- Total digital asset inventory value
consisting of BTC and ETH of approximately $37.5 million as of
November 30, 2021.
- Total cash and digital asset
holdings were approximately $43.8 million.
- Year-to-date deposits on equipment
and infrastructure targeted to be installed in Q4 2021 and Q1 2022
pertaining to the Company’s core business of approximately $32.8
million.
- During November, the Company
received 2,700 new, technologically advanced, high-performance M30
Bitcoin miners (the “Miners”) for use in its
mining operations.
- The Company’s current hashrate is
approximately 415PH and is expected to increase to approximately
1.2EH by the end of Q1 2022.
Bitcoin Mining Update
For the eleven-month period ended November 30,
2021, the Company’s mining fleet produced 459.10 BTC, with
production broken down as follows:
- Quarter 1, 2021: 105.26 BTC
- January: 33.70
- February: 35.02
- March: 36.54
- Quarter 2, 2021: 109.97 BTC
- April: 37.52
- May: 34.26
- June: 38.19
- Quarter 3, 2021: 133.02 BTC
- July: 51.28
- August: 44.07
- September: 37.67
- Quarter 4, 2021 (through November
30, 2021): 110.85 BTC
- October: 41.84
- November: 69.01
Year-Over-Year Monthly
Comparison
The Company mined approximately 42.86 more BTC
in November 2021, compared to November 2020, representing an
increase of approximately 164%. Using the November 30, 2021 and the
November 30 2020 closing BTC prices (per CoinDesk) plus the
increase in BTC mined in November 2021, the value of the Company’s
BTC mined in November 2021 increased by approximately $3.4 million,
or 671% over November 2020.
Figure 1. Year-over-year Monthly BTC
Production
|
|
|
|
|
Nov-20 |
Nov-21 |
MoM Increase |
Mined
BTC |
|
26.15 |
|
69.01 |
42.86 |
Approximate BTC value |
$19,626 |
$57,350 |
$37,724 |
Value |
$513,619 |
$3,957,724 |
$3,444,504 |
|
|
|
|
Month-Over-Month Comparison
The Company mined an additional 27.17 BTC during
November 2021 compared to October 2021, representing an increase of
65%. Based on November 30, 2021 and October 31, 2021 closing BTC
prices plus the increase in BTC mined in November, the value of the
Company’s BTC mined in November increased by approximately $1.4
million, or 54%, month over month.
Figure 2. Month-over-month BTC Production
|
|
|
|
|
Oct-21 |
Nov-21 |
MoM Increase |
Mined
BTC |
|
41.84 |
|
69.01 |
27.17 |
Approximate BTC value |
$61,319 |
$57,350 |
($3,969) |
Value |
$2,565,587 |
$3,957,724 |
$1,392,137 |
|
|
|
|
Corporate Updates for November
2021:
- The Company’s strategic co-mining
agreement with Bit Digital USA, Inc (“BTBT)
(Nasdaq: BTBT) is in process, with expected completion of the
deployment of BTBT miners in Digihost’s premises by the end of Q2
2022.
- A portion of the Miners received
during Q4 2021 are related to the Company’s Miner Lease Agreement
with Northern Data, NY LLC., pursuant to which the parties have
agreed to split a portion of the mining rewards received and energy
costs incurred for the Miners put in service pursuant to that lease
agreement.
- The Company has been nominated for
the DCD Global Awards 2021 Carbon Champion Award. This global award
is given every year to the company or companies deploying the most
innovative solutions to growing digital infrastructure with energy
aware and innovative approaches. Digihost’s facility has been
participating in demand response programs in New York, and the
Company is pleased to report that, over the May 2019-June 2021
participation season in the demand response programs, the Company
has avoided nearly 150 metric tons of marginal CO2, with just 29
hours of demand response participation. This is the equivalent of
mitigating 164.4 tons coal burning avoidance or sequestering 182
acres of U.S. forests for one year. Digihost’s site reduced
marginal carbon emissions by 5.1 tons per hour of demand response
participation – the equivalent of 5,637 tons of coal burned per
hour. The analysis was conducted by CPower Energy Management in
partnership with WattTime, which uses Automated Emissions Reduction
software intelligence to help end users shift the timing of
flexible electricity use to sync with times of cleaner energy and
avoid times of dirtier energy.
- Pursuant to its March 24, 2021
press release in which the Company announced that it had signed a
binding agreement for the purchase of a 60 MW power plant located
in the State of New York, Digihost is currently awaiting final
Public Service Commission approval of the transaction.
Management Commentary
Michel Amar, the Company’s CEO, stated:
“November proved to be an extremely productive month for our mining
division, as we increased our Bitcoin production by 54% over the
prior month. This was the single highest amount of Bitcoin produced
by the Company in any given month in the Company’s history, and,
with shipments of our previously purchased miners accelerating over
the coming months, we expect our Bitcoin production to become even
greater as we continue to scale.”
About Digihost Technology
Inc.
Digihost is a growth-oriented blockchain
technology company primarily focused on Bitcoin
mining. Through its self-mining operations and joint venture
agreements, the Company is currently hashing at a rate of
approximately 415PH with plans to expand to a hashrate of 3.6 EH by
the end of 2022.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive Officer
Email: michel@digihostblockchain.com
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 news
release.
Forward-Looking Statements
Except for the statements of historical fact,
this news release contains “forward-looking information” and
“forward-looking statements” (collectively, “forward-looking
information”) that are based on expectations, estimates and
projections as at the date of this news release and are covered by
safe harbors under U.S. and Canadian securities laws.
Forward-looking information in this news release includes
information about hashrate expansion, diversification of
operations, potential further improvements to profitability and
efficiency across mining operations, potential for the Company’s
long-term growth, and the business goals and objectives of the
Company. Factors that could cause actual results, performance or
achievements to differ materially from those described in such
forward-looking information include, but are not limited to:
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; the
ability to establish new facilities for the purpose of
cryptocurrency mining; receipt of Public Service Commission
approval or other regulatory or board approvals; the ability to
establish new facilities for the purpose of research &
development; a decrease in cryptocurrency pricing, volume of
transaction activity or generally, the profitability of
cryptocurrency mining; delivery of mining rigs for self-mining and
for hosting may not be realized in the number anticipated, or at
all, or on the schedule anticipated, and resulting hashing power
may materially differ from that anticipated; 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. Except
as expressly required by applicable securities laws, the Company
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, changed
circumstances or future events or for any other reason.
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