Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to provide unaudited BTC production results for
the month ended April 30, 2022, combined with an operations
update. All monetary references are expressed in USD
unless otherwise indicated.
Production Highlights for April
2022
- Mined 109.03 BTC, resulting in
total holdings of 797.28 BTC at the end of April valued at
approximately $30.1 million based on a BTC price of $37,715 as of
April 30, 2022.
- Ethereum (“ETH”) holdings of
1,000.89 ETH at the end of April valued at approximately $2.7
million based on an ETH price of $2,730 as of April 30, 2022.
- Total digital asset inventory
value, consisting of BTC and ETH, of approximately $32.8 million as
of April 30, 2022.
- Consistent with the Company’s
stated objective to avoid equity dilution for its shareholders,
management sold a portion of BTC production during the month to
fund its energy costs.
Month-Over-Month
Comparison
The Company mined an additional 33.44 BTC during
April 2022 compared to March 2022, an increase of 44%. Based on
closing BTC prices on April 30, 2022 and March 30, 2022, the value
of the Company’s BTC mined in April increased by approximately $0.7
million, or 20%, month over month.
Figure 1. Month-over-month BTC Production
|
|
|
|
|
Apr-22 |
|
Mar-22 |
|
MoM Increase |
|
|
|
|
|
Mined BTC |
|
109.03 |
|
|
75.58 |
|
|
33.44 |
|
Approximate BTC value |
$37,715 |
|
$45,539 |
|
($7,824 |
) |
Production Value |
$4,112,066 |
|
$3,426,354 |
|
$685,712 |
|
|
|
|
|
Year-Over-Year Monthly
Comparison
The Company increased mining production by 71.51
BTC in April 2022, compared to April 2021, representing an increase
of 191%. Based upon closing BTC prices on April 30, 2022 compared
to April 30, 2021, the value of the Company’s BTC mined in April
2022 increased by approximately $1.9 million, or 89.8%, compared to
April 2021.
Figure 2. Year-over-year Monthly BTC
Production
|
|
|
|
|
Apr-22 |
|
Apr-21 |
|
MoM Increase |
|
|
|
|
|
Mined BTC |
|
109.03 |
|
|
37.52 |
|
|
71.51 |
|
Approximate BTC value |
$37,715 |
|
$57,750 |
|
($20,035 |
) |
Production Value |
$4,112,066 |
|
$2,166,787 |
|
$1,945,280 |
|
|
|
|
|
Operations Update
During April 2022, Digihost successfully
completed electrical testing phases at the Company’s infrastructure
buildout in North Tonawanda. The Company demonstrated the ability
to sustain aggregate operating levels at approximately 1 EH/s while
meeting all internal assessment qualifications. The testing was
completed in an efficient manner by temporarily accessing power
from the local electrical power grid.
As previously disclosed, the Company awaits
approval from the New York Public Service Commission to complete
the acquisition of this 60 MW power plant in North Tonawanda. The
Company anticipates its hashing power will decrease in May 2022
until the acquisition is finalized, and in the interim, has
submitted a request to the utility provider for a permanent
allocation of power at the North Tonawanda location.
Operational Expansion
The Company has recently acquired, in escrow, 25
acres of land in North Carolina in conjunction with ongoing
negotiations to access a 200MW power infrastructure program
that would be expected to be completed and ready for operation by
the end of Q3 2023.
Green Energy
A hallmark of Digihost’s strategic growth plan
has been its accessing of clean sources of energy while also being
agreeable to on-demand programs with utilities that allow the
Company to provide urgent power needs for local communities during
extreme weather conditions. The Company is pleased to report that
during April 2022 while its BTC mining operation was running at
over 1 EH/s, over 90% of the energy consumed by its operations was
derived from sources that create zero carbon emissions.
At-the-Market Financing
Update
On March 4, 2022, the Company entered into an
offering agreement with H.C. Wainwright & Co., LLC as agent,
pursuant to which the Company established an at-the-market equity
program (the “ATM Program”). From the commencement of the ATM
Program through to the date hereof, the Company has not issued any
securities pursuant to the ATM Program.
About Digihost
Digihost is a growth-oriented blockchain
technology company primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 450 PH/s.
All hosting fees and joint venture profit
sharing are treated as operating expenses in the Company’s
consolidated financial statements.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive
Officer T: 1-818-280-9758Email: michel@digihost.ca
Cautionary StatementTrading 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
StatementsExcept 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 Canadian and United States securities laws.
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
the Company’s expansion efforts, 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; future capital needs and uncertainty of additional
financing, including the Company’s ability to utilize the Company’s
at-the-market offering program (the “ATM Program”) and the prices
at which the Company may sell securities in the ATM Program, as
well as capital market conditions in general; share dilution
resulting from the ATM Program and from other equity issuances;
risks relating to the strategy of maintaining and increasing
Bitcoin holdings and the impact of depreciating Bitcoin prices on
working capital; regulatory and other unanticipated issues that
prohibit us from declaring or paying dividends to our shareholders
that are payable in Bitcoin; 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; approval of the Public Service
Commission or other regulatory or board approvals being received on
a timely basis, or at all; the acquisition of North Tonawanda, New
York facilities closing on timely basis, or at all; ability to
access additional power from the local power grid; 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; the ability to maintain reliable and economical sources of
power to run 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 adhere to Digihost’s
dividend policy and the timing and quantum of dividends based on,
among other things, the Company’s operating results, cash flow and
financial condition, Digihost’s current and anticipated capital
requirements, and general business conditions; 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 uncertainties therein.
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