Digihost Announces Y/Y YTD 45% Increase in Bitcoin Production and Provides Operations Update
02 December 2022 - 10:00PM
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 comparative BTC production
results for the month ended November 30, 2022, combined with an
operations update. All monetary references are expressed in USD
unless otherwise indicated.
Production Highlights for November
2022
- Mined 61.32 BTC, resulting in total
holdings of 98.38 BTC at the end of November valued at
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 valued at
approximately $1.04 million based on an ETH price of $1,296 as of
November 30, 2022.
- Total digital asset inventory
value, consisting of BTC and ETH, of approximately $2.73 million as
of November 30, 2022. In addition, the Company held cash of
approximately $2.62 million at the end of November. Cash and liquid
assets as of November 30, 2022 totalled approximately $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 its energy costs.
- The Company’s mining operations
continue to remain cash flow positive.
- Digihost also remains debt free
with the exception of approximately $1 million of mortgage debt
secured by its Alabama facility.
Year-Over-Year YTD
Comparison
On a year-to-date basis, the Company mined
approximately 239.33 more BTC as of November 30, 2022, compared to
November 2021, representing an increase of approximately 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 |
) |
|
|
|
|
Custodial 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 in order to better safeguard its assets. This change in
custodial practices is consistent with the Company’s risk
management strategy in the current market environment.
North Tonawanda Power Plant Acquisition
Update
The Company continues to move forward with
closing documentation and approval requirements related to
Digihost’s acquisition of a 60 MW power plant in North Tonawanda,
NY (“NT”). Management anticipates this transaction
will close in Q1 of 2023 providing the Company with additional
computing capacity of approximately 1.04 EH based upon a power
generation run rate of approximately 50 MW from the plant.
When combined with Digihost’s current operations
total computing capacity from the Company’s New York State (“NY”)
operations is projected to be approximately 1.7 EH.
Alabama Site Build-Out
The Alabama Phase 1 build-out is continuing on
schedule and on budget, with testing of mining equipment 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 primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 650 PH/s.
All hosting fees and joint venture profit
sharing are treated as production costs 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
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” 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, 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: 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;
development of additional facilities to expand operations in
Alabama may not be completed on the timelines anticipated by the
Company, 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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