• Wed. May 29th, 2024

Digihost Announces Y/Y 129% Increase in Quarterly Bitcoin Production

 Provides Operations Update

This news release constitutes a “designated news 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, July 05, 2022 (GLOBE NEWSWIRE) — 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 June 30, 2022, combined with an operations update. All monetary references are expressed in USD unless otherwise indicated.

Production Highlights for June 2022

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  • Mined 72.18 BTC, resulting in total holdings of 293.30 BTC at the end of June valued at approximately $5.8 million based on a BTC price of $19,785 as of June 30, 2022.
  • Ethereum (“ETH”) holdings of 1,000.89 ETH at the end of June valued at approximately $1.07 million based on an ETH price of $1,067.29 as of June 30, 2022.
  • Total digital asset inventory value, consisting of BTC and ETH, of approximately $6.87 million as of June 30, 2022. In addition, the Company held cash of approximately $5 million and derivative instruments of approximately $500,000 as of June 30, 2022. Cash and liquid assets as of June 30, 2022 totalled approximately $12.4 million.
  • On June 14, 2022, the Company repaid its $10 million collateralized loan facility by monetizing a portion of its BTC holdings. The Company currently has no debt.
  • To avoid equity dilution for its shareholders, management sold a portion of its BTC production during the month to fund its energy costs.

Year-Over-Year Quarterly Comparison

The Company mined approximately 141.71 more BTC in Q2 2022, compared to Q2 2021, representing an increase of approximately 128.9%. Using the June 30, 2022 and June 30, 2021 closing BTC prices (from CoinDesk), the value of the Company’s BTC mined in Q2 2022 increased by approximately $1.1 million, or 29% compared to Q2 2021.

Figure 1. Year-over-year Quarterly BTC Production

Q2 2022 Q2 2021 QoQ Increase
Mined BTC 251.68 109.97 141.71
Approximate BTC value $19,785 $35,041 ($15,256 )
Production Value $4,979,489 $3,853,459 $1,126,030


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Quarter-Over-Quarter Comparison

The Company mined an additional 65.85 BTC during the second quarter of 2022 compared to the first quarter of 2022, representing an increase of 35%.

Figure 2. Quarter-over-quarter BTC Production

Q2 2022 Q1 2022 QoQ Increase
Mined BTC 251.68 186.83 64.85
Approximate BTC value $19,785 $45,539 ($25,754 )
Production Value $4,979,489 $8,508,051 ($3,528,563 )

Operational Update

Digihost is pleased to announce that planning is well under way at the Company’s new Alabama site (please refer to Digihost’s news releases dated June 14 and June 22, 2022) with mining operations projected to commence in Q4. Based upon power rates currently being negotiated by management with Alabama Power, Digihost projects its operational breakeven point will occur at a BTC price of approximately $12,000. The Company’s move to Alabama and the opening of a new head office in Houston, Texas earlier this year are milestones consistent with Digihost’s strategic plan to diversify jurisdictional risk.

Although Digihost’s operations are currently located in Buffalo and North Tonawanda the Company does not intend to open any new mining facilities in New York State (“NYS”). Due to the recent material rise in energy costs in NYS the Company anticipates curtailing operations during peak hours at current BTC prices. Additionally, Digihost will continue its practice of drawing less power from the grid when consumer demand periodically spikes as a result of hot weather conditions expected over the next several months.

In the current inflationary environment management has introduced additional internal control measures to ensure adherence to its aggressive cost control program. Zero-based budgeting has been implemented on a line-by-line base regardless of the expense category. This cost control program has already resulted in material savings.

Don Christie, Chief Operating Officer, commented, “We are pleased to report on our progress in diversifying our operations on a jurisdictional basis. We will continue this strategy as we constantly monitor changes in the political environment within which our industry operates. I would also like to thank our employees for supporting the implementation of our cost control program as we work our way through this challenging time for our industry and the economy as a whole. I am confident, that as a result of these cost savings and further actions we have taken to strengthen our balance sheet, Digihost will emerge from this inflationary period as a stronger more disciplined and profitable company”.

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 operating expenses in the Company’s consolidated financial statements.

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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.