Digihost Provides Update on Deal to Acquire 9,900 Bitcoin Miners and Increase Hashrate by 925PH
May 14 2021 - 4:30PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) provides an
update on its acquisition of 9,900 Bitcoin (“
BTC”)
miners (the “
Miners”) that will increase the
Company’s current hashrate by approximately 925PH to 1.145EH,
previously announced in the Company’s May 12, 2021 news release.
The Company is funding the purchase of the Miners with capital from
its equity financings closed since the beginning of 2021 of
approximately CA$54,000,000.
In connection with the purchase agreement with
Northern Data AG (“Northern Data”) (ISIN:
DE000A0SMU87; OTC: NDTAF) to acquire the Miners, the Company
concurrently entered into a hosting agreement (the “Hosting
Agreement”) with Northern Data in connection with the
Miners, whereby Northern Data will provide services to the Company
including the installation and hosting of the Miners. Northern Data
will host the Miners in proprietary pre-manufactured performance
optimized mobile data centers at the Company’s facilities for a
term of three years from the date that installation of the Miners
at the Company’s facilities is completed. The Miners are expected
to be delivered and installed incrementally between August and
December of this year, and will be 100% operational by January
2022.
The Company anticipates the costs of developing
systems to supply the mobile data centres with power from the
facilities will be approximately US$4.5 million, which the Company
will fund with capital from its previously completed equity
financings. This US$4.5 million cost represents the capital
expenditure costs for the 9,900 Miners, and additional costs will
need to be incurred if the purchase agreement is expanded to up to
30,000 miners (press release – May 12, 2021).
The Company also wishes to clarify that the
Company’s forecast of approximately US$80 million of operating
profit in 2022, disclosed in the May 12, 2021 news release,
represents the anticipated operating profit from the Company’s
share of the profit from the Miners, as well as the operating
profit from its existing operations. The forecast was based on BTC
metrics on May 12, 2021, being an approximate US$57,000 price of
BTC and hashing difficulty rates as of May 12, 2021. The forecast
also assumes a hashrate of 1.145EH for 2022, as well as current
electricity costs and other operating costs remaining constant.
Profitability of mining BTC will be materially impacted by changes
in BTC prices, increases in mining difficulty rates and changes in
electricity costs. There can be no assurance that the price of BTC
will remain at current levels or that forecasted operating profit
will be realized.
Michel Amar, the Company’s CEO, stated: “Since
the beginning of the year, we have achieved operational milestones
in support of our growth strategy. We are pleased to be in a
position today to have the required funding, power capacity, and
access to infrastructure to execute on our strategy for 2021 and
beyond.”
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 200PH 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; the
forecasted operating profit of US$80 million in 2022 may not be
realized; further improvements to profitability and efficiency may
not be realized, and changes in digital currency prices, mining
difficulty rates and electricity costs may effect profitability;
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.
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Apr 2023 to Apr 2024