Digihost Acquires 60 MW Power Plant Increasing Hashrate Capacity to 3 EH
March 24 2021 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that the Company has signed a binding agreement (the
“
Agreement”) for the purchase of a 60 MW power
plant (“
Digifactory1”) located in the State of New
York, bringing the Company’s total power capacity to approximately
102 MW. The Company’s ability to generate its own power will
significantly reduce electricity costs, the Company’s largest
operating expense for its cryptocurrency mining operations. It is
estimated that with the acquisition of Digifactory1, the all-in
cost of electricity will be reduced to under US$0.03 per kw/h.
To the extent possible, the Company intends to
source and utilize renewable natural gas for the operations of
Digifactory1 and also engage in the practice of acquiring renewable
energy certificates, all in line with the Company’s objective to
mitigate its carbon footprint. Digifactory1 will have the capacity
to operate an additional 18,000 top tier Bitcoin miners, which if
added to the existing fleet of 11,500 miners already in operation,
would combine for a total Bitcoin mining capacity of approximately
400 Bitcoins per month as of today’s mining difficulty factor.
Additionally, the expanded capacity would allow for a potential
increase to the existing hashrate of 190 PH to up to 3 EH. This
substantial increase in both Bitcoin mining output capacity and
hashrate would be the direct result of potentially adding up to
18,000 latest generation Bitcoin miners, versus the current
operating mix of 11,500 older and newer version Bitcoin miners.
Under the terms of the Agreement, the Company
will pay to the vendor cash consideration of US$3,500,000 and issue
to the vendor 437,318 common shares of the Company with a deemed
value of US$750,000 (US$1.72 per share).
Alec Amar, the Company’s President stated: “We
are extremely excited to have achieved this milestone in the
evolution of our Company. Vertical integration is a fundamental
aspect of our business model, which will enable us to maximize
Bitcoin mining efficiency and continuing to create sustainable
value for our shareholders. The addition of Digifactory1 will
further reduce the electricity costs of our already efficient
operations, and will also provide additional capacity to operate a
new fleet of top tier Bitcoin miners.”
The transaction is expected to close within
ninety days subject to TSX Venture Exchange and all required
regulatory approvals. The securities issuable in connection
therewith will be subject to a statutory four month and a day hold
period. Further announcements will be made on the status of the
transaction and closing.
About Digihost Technology Inc.
Digihost Technology Inc. is a growth-oriented blockchain company
primarily focused on Bitcoin mining. The Company's mining facility
is located in Buffalo, N.Y., and is equipped with an 18.7MVA
115,000-kilovolt-ampere outdoor substation with an option to
increase the power output to 42MVA. The Company is currently mining
approximately 1.2 Bitcoins per day, subject to difficulty.
Digihost’s strategy is to focus on continually increasing its
hashrate with a concurrent reduction in energy costs.
For further information, please contact:
Digihost Technology
Inc.www.digihost.ca Michel Amar, Chief
Executive Officer Email: 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 Statements
Except for the statements of historical fact, this news release
contains “forward-looking information” within the meaning of the
applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. “Forward-looking information” in this news release
includes information about potential further improvements to
profitability and efficiency across mining operations as a result
of the acquisition of Digifactory1, 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: the ability to obtain regulatory
approval for and complete the acquisition of Digifactory1 on the
terms as announced or at all; the ability to successfully integrate
the acquisition of Digifactory1 on an economic basis or at all;
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; 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; 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 uncertainty therein.
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