This press release constitutes a “designated press release” for the purposes of the Company’s prospectus supplement dated March 4, 2022 to its short form base shelf prospectus dated February 23, 2022.
TORONTO, Dec. 02 2022 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost“or the”Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative Bitcoin based in the United States (“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 currency references are expressed in USD unless otherwise stated.
Production Highlights for November 2022
- Mining 61.32 BTC, resulting in a total of 98.38 BTC at the end of November valued at around $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. Additionally, the company held cash of approximately $2.62 million at the end of November. Cash and liquid assets as of November 30, 2022 totaled approximately $5.35 million.
- In line with management’s commitment to avoid equity dilution for its shareholders, the company sold some of its BTC production in November to fully fund its energy costs.
- The Company’s mining operations continue to generate positive cash flow.
- Digihost also remains debt-free except for approximately $1 million in mortgage debt secured by its Alabama facility.
Year-on-year comparison since the beginning of the year
Year-to-date, the Company has mined approximately 239.33 BTC more as of November 30, 2022, compared to November 2021, representing an increase of approximately 45%.
Figure 1. Year-to-date BTC annual production
| Year-to-date 2022 | Year-to-date 2021 | Increase since the beginning of the year |
|||||
| 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 | ) | |||
Custody services for digital currencies
Due to potential contagion from the recent collapse of FTX, the company made the decision to move the majority of its digital currencies to an offline cold storage wallet to better protect its assets. This change in custodial practices is consistent with the Company’s risk management strategy in the current market environment.
Update on North Tonawanda Generating Station Acquisition
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 expects this transaction to close in the first quarter of 2023, providing the Company with approximately 1.04 PE of additional compute capacity based on a power generation rate of approximately 50 MW from the power plant.
When combined with Digihost’s current operations, the total computing capacity of the Company’s New York State (“NY”) operations is expected to be approximately 1.7 PE.
Construction of the Alabama site
Construction of Alabama Phase 1 continues on schedule and on budget, with mining equipment testing beginning in December. Phase 1, which is expected to be completed in the first quarter of 2023, will provide the company with 22 MW of electrical capacity, which will translate into approximately 550 PH of additional mining capacity.
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 currently chops at a rate of approximately 650 PH/s.
All accommodation costs and joint venture profit sharing are treated as production costs in the Company’s consolidated financial statements.
For more information, please contact:
Digihost Technology Inc.
www.digihost.ca
Michel Amar, Managing Director
T: 1-818-280-9758
Email: [email protected]
Caution
Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved of 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 statements of historical fact, this press release contains “forward-looking information” and “forward-looking statements” (collectively, “Forward-Looking Information”) that are based on expectations, estimates and projections as of the date of this press release and are covered by safe harbors under the securities laws of Canada and the United States. The forward-looking information contained in this press release includes information on possible further improvements in the profitability and efficiency of mining operations. including, as a result of the Company’s expansion efforts, the Company’s long-term growth potential and the Company’s business goals and objectives. 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 requirements and the uncertainty of additional financing, including the ability of the Company to use the Company’s market offering program (the “ATM Programme”) and the prices at which the Company may sell ATM Program securities, as well as general capital market conditions; stock dilution resulting from the ATM program and other stock issuances; risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of Bitcoin price depreciation on working capital; regulatory and other unforeseen issues that prohibit us from declaring or paying our shareholders dividends payable in Bitcoin; the continuing effects of the COVID19 pandemic could have a material adverse effect on the Company’s performance, as supply chains are disrupted and prevent the Company from operating its assets; the development of additional facilities to expand operations in Alabama may not be completed within the timelines anticipated by the Company, if at all; the acquisition of the facilities in North Tonawanda, New York, closing on time or not at all; ability to access additional power from the local power grid; a decline in cryptocurrency prices, trading volume or, more generally, the profitability of cryptocurrency mining; further improvements in 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 could have a material adverse impact on the Company’s operations; digital currency price volatility; and other related risks as more fully described in the Company’s Annual Information Form and other documents disclosed in the Company’s filings on www.sedar.com. The forward-looking information contained in this press release reflects the Company’s current expectations, assumptions and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this press release, the Company has made assumptions about: the current profitability of cryptocurrency mining (including prices and volume of current trading activity); the profitable use of the Company’s assets in the future; the Company’s ability to profitably liquidate its digital currency inventory as needed; historical prices of digital currencies and the Company’s ability to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical power sources to operate its cryptocurrency mining assets; the negative impact of regulatory changes to energy regimes in the jurisdictions in which the Company operates; the ability to adhere to Digihost’s dividend policy and the timing and amount of dividends based on, among other things, the Company’s results of operations, cash flow and financial condition, capital requirements current and anticipated Digihost Terms and Conditions of Business; and there will be no regulations or laws that prevent the Company from carrying on business. The Company has also assumed that no material events occur outside of the normal course of business for the Company. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be placed on such information due to the inherent uncertainties therein. .
