Digihost Announces Record Results for the First Quarter of 2021
May 19 2021 - 6:30AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) announces
its financial results as of and for the three months ended March
31, 2021 (all amounts in U.S. dollars, unless otherwise indicated).
The Company’s unaudited consolidated financial statements and
management’s discussion and analysis (“
MD&A”)
for periods ended March 31, 2021 and 2020 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: “We are
extremely pleased by the record financial results achieved by
Digihost for the first quarter of 2021, reporting $5,910,974 of
total comprehensive income for the period, an increase of 872% over
the same period of last year. We are looking forward to building on
these results through our commitment to expand our business in an
environmentally and socially responsible way, thereby creating the
momentum to continue our success during the remainder of 2021 and
beyond.”
First Quarter 2021 Financial
Highlights
The following information compares the financial
results of the Company for the three months ended March 31, 2021
(“2021”) and the three months ended March 31, 2020
(“2020”):
- Record high total comprehensive
income of $5.9 million reported in 2021, compared to a total
comprehensive loss of $0.76 million in 2020, an increase of
872%;
- Revenue from digital currency
mining increased by 469% to $4.8 million in 2021 compared to $0.8
million in 2020;
- Gross profit margin increased to
44% in 2021 compared to a gross loss margin of 13% in 2020, an
increase in gross margin of 57%;
- The weighted average shares
outstanding in 2021 were 44,313,754 compared to 20,257,016 in
2020.
The following information compares the financial
position of the Company as at March 31, 2021
(“2021”) and as at December 31, 2020
(“2020”):
- Cash balance of $13.19 million in
2021 compared to $0.03 million in 2020, an increase of $13.16
million;
- Digital currencies balance of
$15.16 million in 2021, comprised of 260 Bitcoins, compared to
$4.51 million in 2020, comprised of 154 Bitcoins, an increase of
$10.65 million and 106 Bitcoins;
- Total assets of $43.54 million in
2021 compared to $16.52 million in 2020, an increase of $27.02
million;
- Total liabilities of $4.40 million
in 2021 compared to $6.08 million in 2020, a decrease of $1.68
million; and
- Total shareholders’ equity of
$39.14 million in 2021 compared to $10.44 million in 2020, an
increase of $28.70 million.
Recent Highlights
- On April 13, 2021, the Company
announced the closing of a private placement of shares and warrants
for gross proceeds of CA$25 million;
- On April 14, 2021, the Company
appointed international audit firm, Raymond Chabot Grant Thornton
LLP;
- On May 10, 2021, the Company
announced the status of its Nasdaq listing application and
diversification of cryptocurrency business model to include
Ethereum technology;
- On May 14, 2021, the Company
announced the acquisition of 9,900 Bitcoin Miners to increase its
hashrate by 925PH, and hosting agreement with Northern Data
AG;
- On May 17, 2021, the Company
reported on green energy consumption, stating that 90% of the
energy consumed by Digihost in its Bitcoin mining operations is
from sources that create zero carbon emissions and more than 50% of
the energy consumed by the Company is generated from renewable
sources; and
- The Company’s current cryptocurrency
holdings are comprised of: 564 Ethereum and 299 Bitcoin.
Michel Amar commented: “Our long-term vision and
business strategy is to expand our operations and evolve as a
leader in the blockchain technology sector. While cryptocurrency
mining is one application of blockchain technology, the blockchain
sector as a whole is a monumental leap forward in information
transparency, security, and decentralization. We are committed to
pursue every opportunity in this sector that allows us to create
significant shareholder value in an environmentally conscious
manner, with the goal of eventually eliminating the Company’s
already very low carbon footprint.”
(U.S.$ except per share data) |
Three Months Ended March 31 |
For the periods ended as indicated |
2021 |
|
2020 |
|
Revenue from digital currency mining |
4,767,075 |
|
838,310 |
|
Operating and maintenance costs |
(1,549,144 |
) |
(586,336 |
) |
Depreciation |
(1,109,796 |
) |
(363,290 |
) |
Gross profit (loss) |
2,108,135 |
|
(111,316 |
) |
General and administrative and other expenses |
(1,879,866 |
) |
(579,069 |
) |
Change in fair value of warrant liability |
- |
|
40,436 |
|
Gain on disposition of cryptocurrencies |
- |
|
28,590 |
|
|
|
|
Operating profit (loss) |
228,269 |
|
(621,359 |
) |
Net financial expenses |
(155,312 |
) |
(7,451 |
) |
Net income (loss) for the period |
72,957 |
|
(628,810 |
) |
|
|
|
Other comprehensive income |
|
|
Foreign currency translation adjustment |
1,456 |
|
- |
|
Revaluation of digital currency |
5,836,561 |
|
(137,014 |
) |
Total comprehensive income (loss) |
5,910,974 |
|
(765,824 |
) |
Basic and diluted loss per share – dilutedWeighted average number
of subordinate voting shares outstanding – basic and diluted |
(0.0044,313,754 |
) |
(0.0320,257,016 |
) |
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 Statement
Trading 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” and
“forward-looking statements” (collectively, “forward-looking
information”) 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 listing
on Nasdaq, hashrate expansion, diversification of operations to
include Ethereum technology, potential further improvements to
profitability and efficiency across mining operations, potential
for the Company’s long-term growth, and the business goals and
objectives of the Company. Factors that could cause actual results,
performance or achievements to differ materially from those
described in such forward-looking information include, but are not
limited to: risks relating to completion of the Nasdaq listing
process, 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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