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, Dec. 02, 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 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|
|Approximate BTC value||$17,169||$57,005||($39,837||)|
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.
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.
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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.