Digihost Provides July 2023 Production Update
August 02 2023 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based blockchain technology and computer
infrastructure company, is pleased to provide unaudited comparative
Bitcoin (“
BTC”) production results for the month
ended July 31, 2023, combined with an operations update. All
monetary references are expressed in USD unless otherwise
indicated.
Since its inception, one of Digihost’s primary
business strategies has been to mine BTC in an efficient and
environmentally conscious manner, thereby minimizing the Company’s
carbon footprint. Over time, Digihost has also been consistently
flexible and willing to curtail its energy usage in times of
extreme demand in order to support the electrical requirements of
its surrounding communities.
With July 2023 being one of the warmest months
ever recorded, the Company voluntarily curtailed its burden to
assist the energy needs of its local communities in Western New
York. While this ultimately lowered the number of BTC produced by
Digihost during the month than it had originally anticipated, the
Company reacted accordingly under the extreme weather conditions of
July in order to provide its local area with the supply necessary
to avoid interruptions of service.
Monthly Production Highlights for July
2023
- Mined approximately 55 BTC.
Production of BTC mined is expected to ramp up by the end of Q3
2023, as the Company finalizes the infrastructure setup at its most
recently acquired site. Infrastructure installation has been
completed at the Company’s other two sites.
- The Company held cash, BTC and cash
deposits of approximately $2.4 million as of July 31, 2023 (based
on a BTC price of $29,230 as of July 31, 2023 per CoinMarketCap),
which was in line with Digihost’s cash and crypto holdings of $2.3
million as of June 30, 2023 (based on a BTC price of $30,477 as of
June 30, 2023 per CoinMarketCap).
- Spent approximately $0.4 million on
capital expenditure and mining infrastructure support equipment.
Digihost continues to monitor its capital expenditures closely with
self-funding to avoid equity dilution for its shareholders.
- Consistent with management’s
ongoing commitment to avoid equity dilution for its shareholders,
the Company has continued to monetize a portion of its BTC
production to fully fund its energy costs.
- The Company did not purchase or sell
any miners during the month.
Operations Update
As a result of the Company’s site acquisition in
Q1 2023, Digihost’s consolidated operating capacity across its
three sites has increased to approximately 100MW, representing
approximately 2 EH of computing power.
The Company projects that total capacity will be
fully deployed by the end of Q3 2023. The plant will continue
flexible operations to ensure that 24/7 dispatchable electrical
supply is made available to upstate New York area residents,
businesses and industry to mitigate impacts of power
interruptions.
About Digihost
Digihost is a growth-oriented technology company
focused on the blockchain industry. The Company operates from three
sites in the U.S. and, in addition to managing its own operations,
provides hosting arrangements at its facilities.
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 and installation of
infrastructure to expand operations may not be completed on the
timelines anticipated by the Company, 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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