Digihost Announces Y/Y 52% Increase in Quarterly Bitcoin Production and Provides Operations Update
October 04 2022 - 6:00AM
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 and quarter ended September 30, 2022,
combined with an operations update. All monetary references are
expressed in USD unless otherwise indicated.
The Company is pleased to report that it mined
approximately 591 BTC in the first nine months of 2022, exceeding
full year 2021 BTC production by approximately 14%.
Production Highlights for September
2022
- Mined 69.84 BTC, resulting in total
holdings of 160.86 BTC at the end of September valued at
approximately $3.13 million based on a BTC price of $19,432 as of
September 30, 2022.
- Ethereum (“ETH”) holdings of
1,000.89 ETH at the end of September valued at approximately $1.33
million based on an ETH price of $1,328 as of September 30,
2022.
- Total digital asset inventory
value, consisting of BTC and ETH, of approximately $4.46 million as
of September 30, 2022. In addition, the Company held cash of
approximately $3.0 million as of September 30, 2022. Cash and
liquid assets as of September 30, 2022 totalled approximately $7.46
million.
- To avoid equity dilution for its
shareholders, management sold a portion of its BTC production
during September to fund its energy costs.
- The Company remains debt free as of
September 30, 2022.
- In continuing its support of the
power needs of the local community, the Company reduced its overall
energy consumption throughout Q3 of 2022 with its operation running
predominantly at off-peak hours.
Year-Over-Year Monthly
Comparison
The Company mined approximately 32.17 more BTC
in September 2022, compared to September 2021, representing an
increase of approximately 85%.
Figure 1. Year-over-year Monthly BTC
Production
|
|
|
|
|
Sep-22 |
Sep-21 |
MoM Increase |
|
Mined BTC |
69.84 |
37.67 |
32.17 |
|
Approximate BTC value |
$19,432 |
$43,791 |
($24,359) |
|
Production Value |
$1,357,131 |
$1,649,607 |
($292,476) |
|
|
|
|
|
Year-Over-Year Quarterly
Comparison
The Company mined an additional 69.76 BTC during
the third quarter of 2022 compared to the third quarter of 2021,
representing year-over-year quarterly increase of 52%.
Figure 2. Quarter-over-quarter BTC Production
|
|
|
|
|
Q3 2022 |
Q3 2021 |
YoY Increase |
|
Mined BTC |
202.78 |
133.02 |
69.76 |
|
Approximate BTC value |
$19.432 |
$43,791 |
($24,359) |
|
Production Value |
$3,940,421 |
$5,825,079 |
($1,884,658) |
|
|
|
|
|
North Tonawanda Power Plant Acquisition
Update
Digihost is pleased to announce that it has
received approval from the New York Public Service Commission for
the acquisition of the 60 MW power plant in North Tonawanda
originally announced by the Company on March 24, 2021. Digihost is
currently moving forward expeditiously with other closing matters
in order to complete the acquisition of the power plant in Q4
2022.
With the power plant running at 50 MW, the
Company will be able to increase its current operating capacity by
approximately 150%, increasing Dighost’s hash rate to approximately
1.6 EH.
Alabama Site Build-Out
The Company is pleased to announce that it
continues the development of the facilities Phase 1 build-out and
construction work in Alabama on schedule and on budget. Digihost is
building the necessary infrastructure to provide the property with
power capacity of 22 MW during the fourth quarter of 2022 and a
total of 55 MW by the end of the first quarter of 2023. Completion
of the Phase 1 build will provide the Company with approximately
550 PH of additional operating capacity.
During Q3 2022, Digihost received Public Service
Commission approval for an economic rider rate discount. This
discount, coupled with the lower direct energy costs it has
negotiated with Alabama Power, will lead to an overall reduction in
the Company’s operating costs. The Alabama Power agreements provide
the Company with very competitive power costs in today’s
inflationary environment, further reinforcing Digihost’s strategic
decision to expand and diversify its operation to Alabama.
North Carolina Expansion
As previously disclosed, earlier in the year the
Company announced that it acquired 25 acres of land in North
Carolina and will be developing it for use in Q3 or Q4 of 2023 with
a request for allocation of up to 200MW of power.
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 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, 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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