Digihost Announces Strategic Collaboration With Bit Digital to Increase Combined Hashrates by 400 PH
June 10 2021 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that the Company has entered into a strategic co-mining
agreement (the “
Agreement”) with Bit Digital USA,
Inc. (“
BTBT”) (Nasdaq: BTBT). Pursuant to the
terms of the Agreement, the Company will provide certain premises
(the “
Premises”) to BTBT for the purpose of the
operation and storage of a 20 MW Bitcoin mining system (the
“
Miners”) to be delivered by BTBT, and the Company
will also provide services to maintain the Premises for a term of
two years. The collaboration between Digihost and BTBT is expected
to generate an increase in hashrate of approximately 400 PH between
the companies.
Under the terms of the Agreement, Digihost will
provide power for the operation of the Miners and will also provide
management services necessary to maintain 95% uptime on the Miners.
In consideration for these services, after paying Digihost a
very competitive rate for power, Digihost and BTBT will
participate in a profit sharing arrangement based on a fixed
distribution formula. It is expected that the Miners will be
delivered and installed during the fourth quarter of this year.
Michel Amar, the Company’s CEO, stated: “We are
extremely pleased by this strategic collaboration with Bit Digital
which, based on current Bitcoin metrics, is expected to deliver
significant results through the increase in hashrate of 400 PH
between the two companies. Our business strategy continues to be
growth through the expansion of our mining infrastructure, vertical
integration of low-cost and green sources of energy, strategic
partnerships with leading companies in the blockchain sector, and
geographic diversification in North America to strategically
operate our business in regions where minimal or no carbon
footprint is generated.”
Bryan Bullett, BTBT’s CEO, stated: “We are
extremely pleased by this strategic collaboration with Digihost
which marks our ongoing expansion in North America, as we continue
to transition our mining fleet here. Our business strategy
continues to encompass growth through the expansion of strategic
partnerships with institutional-quality hosting providers with
aligned economic interests, to secure efficient access to power and
hosting. We look forward to a successful partnership
with Digihost.”
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
hashrate expansion, diversification of operations, 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: 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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