Digihost Announces Audited Year End 2020 Financial Results
May 03 2021 - 06:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) announces
its results for the year ended December 31, 2020 (all amounts in
U.S. dollars, unless otherwise indicated), and provides a 2021
year-to-date operations update. The Company’s audited consolidated
financial statements and management’s discussion and analysis
(“
MD&A”) thereon for years ended December 31,
2020 and 2019 have been filed and made accessible under the
Company’s continuous disclosure profile on SEDAR at www.sedar.com.
Michel Amar, CEO of Digihost, stated: “Although
2020 was a challenging year for all crypto currency miners
including Digihost, during the last few months of the year, and
through the first four months of 2021, we have embarked upon a
transformative period for our Company.”
Beginning in 2021, the Company achieved many
significant milestones in its evolution as a top tier blockchain
technology company, highlighted by the following achievements:
- closed approximately CA$54,000,000
in equity financings;
- upgraded our exchange listing in
the U.S. from the OTC Pink Sheets to the OTCQB;
- increased the Company’s potential
hashrate capacity to 3EH through the acquisition of a 60MW power
plant in Upstate New York (press release – March 24, 2021);
- acquired 700 S17+ 76TH Bitcoin
miners;
- repaid all debt in the aggregate
amount of $3,975,000;
- engaged international audit firm
Raymond Chabot Grant Thornton LLP; and
- increased the Company’s balance of
Bitcoins mined and held by 105.26 during the first quarter of 2021,
and to a total balance of 309 Bitcoins with a market value of
approximately $17,600,000 as of the end of April.
Michel Amar commented: “We are extremely excited
about the potential for the remainder of the year as we continue to
build on our Company’s momentum established during the first four
months of 2021. Having recently raised a significant amount of
capital, combined with our inventory of 309 bitcoins, Digihost has
the liquidity to allow us to capitalize on opportunities that would
significantly expand our Bitcoin mining operations through the
acquisition of new miners and the continued growth of Digihost’s
hashing capabilities, thereby creating increased value for our
shareholders.”
Fiscal Year 2020 Highlights
Michel Amar also stated: “After closing our
reverse takeover transaction with HashChain Technology Inc. and
full vertical integration of our operations in February of last
year, the outbreak of COVID-19 had a negative impact on the Company
and resulted in a temporary shut down of our Bitcoin mining
operations for a portion of the year. The May 2020 Bitcoin halving
event also had an expected negative impact on some of our key
financial metrics for the year as the expected rise in the price of
Bitcoin was delayed until the fourth quarter of 2020.”
Highlights of fiscal 2020 are as
follows:
- Revenue from digital currency
mining: $3.55 million
- Total Comprehensive loss of $3.09
million for the year
- Total assets as at December 31,
2020: $16.5 million
- Total liabilities as at December
31, 2020: $6.08 million
- Working capital increased during
the year to $1.65 million as at December 31, 2020
- Mining output of newly minted
digital currencies: 335 Bitcoin
- Bitcoin balance as at December 31,
2020: 154 Bitcoin (April 30, 2021: 309 Bitcoin)
- Approximate value per Bitcoin on
December 31, 2020: $29,000 (April 30, 2021: $57,000)
(U.S.$ in thousands except per share data) |
Year Ended |
For the periods ended as indicated |
Dec. 312020 |
Dec. 312019 |
Revenue from digital currency mining |
3,553 |
|
- |
|
Cost of sales |
(4,163 |
) |
- |
|
Depreciation |
(3,387 |
) |
- |
|
Gross loss |
(3,997 |
) |
- |
|
General and administrative and other expenses |
(1,788 |
) |
(269 |
) |
Gain on disposition of cryptocurrencies |
63 |
|
- |
|
Other Income |
44 |
|
- |
|
Insurance Proceeds |
110 |
|
- |
|
|
|
|
Operating loss |
(5,568 |
) |
(269 |
) |
Net financial expenses |
(258 |
) |
- |
|
Net loss before income taxes |
(5,826 |
) |
(269 |
) |
Deferred tax recovery |
635 |
|
- |
|
Net loss for the year |
(5,191 |
) |
(269 |
) |
Foreign currency translation adjustment |
118 |
|
- |
|
Revaluation of digital currency, net of tax |
1,983 |
|
- |
|
Total comprehensive net loss |
(3,090 |
) |
(269 |
) |
Basic and diluted loss per share – dilutedWeighted average number
of subordinate voting shares outstanding – basic and diluted |
(0.1535,146,572 |
) |
(742364 |
) |
About Digihost Technology
Inc.
Digihost Technology Inc. is a growth-oriented
blockchain technology company primarily focused on Bitcoin mining.
The Company's mining facilities are located in Upstate New
York, and are equipped with 78.7 MW of low-cost power with the
option to expand to 102MW. The Company is currently hashing at a
rate of 190PH with potential to expand to a rate of 3EH upon the
completion of the previously announced acquisition of a 60MW power
plant.
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” 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 including
as a result of acquisitions of equipment and infrastructure,
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 acquisitions
of equipment and infrastructure on the terms as announced or at
all; the ability to successfully integrate the acquisitions of
equipment and infrastructure 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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