Digihost Announces First Quarter Results With a 77% Increase in Coins Mined During Q1 2022 Compared to Q1 2021
May 17 2022 - 5:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, announces unaudited financial results for the first
quarter ended March 31, 2022 (all amounts in U.S. dollars, unless
otherwise indicated).
“The Company is pleased to present its first
quarter financial results, highlighted by a 77% increase in
Bitcoins mined on a year over year basis,” said Michel Amar,
Chairman and CEO of Digihost. “The Company’s previous investments
in infrastructure along with securing access to clean and renewable
energy sources led to revenue generation from mining of $7.3M, an
increase of 53% over the preceding year. Despite challenging market
conditions, Digihost is committed to its goal of being a leading
blockchain technology company. With approximately $31 million of
cash and cash equivalents currently on hand, valued at today’s BTC
price, and a mining operation with breakeven costs of approximately
$12,000 per BTC, based on current hashing difficulty and cost of
power, the Company is more than capable of sustaining its existing
operations, Digihost is clearly here to stay. Based upon the number
of BTC mined so far this quarter, the Company anticipates that it
will mine more BTC in Q2 than it mined during Q1 of this year.”
First Quarter 2022 Financial
Highlights
- Revenue from digital currency
mining of $7.3 million reported for the three-month period ended
March 31, 2022, compared to $4.8 million for the three-month period
ended March 31, 2021, an increase of 53%;
- For the three-month period ended
March 31, 2022, the Company mined a total of 186.53 BTC compared to
105.26 BTC for the three-month period ended March 31, 2021;
- Operating income for the
three-month period ended March 31, 2022 of $513 thousand, an
increase of 125% over the same period for the prior year;
- Realized net income of $59 thousand
for the three-month period ended March 31, 2022, compared to
realized net income of $73 thousand over the same period for the
prior year;
- EBITDA* of $2.0 million for the
three-month period ended March 31, 2022, compared to $1.3 million
over the same period for the prior year, an increase of 53%;
- Total assets of $97.4 million, an
increase of 22% compared to December 31, 2021;
- Cash and cash equivalents of $47.72
million as at March 31, 2022, an increase of 39% compared to
December 31, 2021;
- Working capital of $35.47 million
as at March 31, 2022, an increase of 34% compared to December 31,
2021;
- Property, plant and equipment
consisting primarily of the Company’s BTC miners (64%) and mining
infrastructure (36%) of $41.47 million;
- Raised CAD$13,300,000 of
institutional equity financing in a private placement at a premium
to market price; and
- Closed a $10,000,000 committed,
collateralized revolving credit facility.
* EBITDA is a non-IFRS financial measure and
should be read in conjunction with, and should not be viewed as an
alternative to or replacement of, measures of operating results and
liquidity presented in accordance with IFRS and refer readers to
reconciliations of non-IFRS measures included in the Company’s
MD&A.
(U.S.$ except per share data) |
Three Months Ended |
|
March 312022 |
March 312021 |
Revenue from digital currency mining |
7,312,342 |
|
4,767,075 |
|
Cost of power and production costs |
(2,143,327 |
) |
(1,549,144 |
) |
Miner lease agreement |
(3,056,125 |
) |
- |
|
Depreciation and amortization |
(1,531,598 |
) |
(1,109,796 |
) |
Gross profit |
581,292 |
|
2,108,135 |
|
General and administrative and other expenses |
(1,337,992 |
) |
(439,442 |
) |
Gain on sale of property, plant and equipment |
2,340,658 |
|
- |
|
Loss on settlement of debt |
- |
|
(274,882 |
) |
Foreign exchange |
(770,196 |
) |
- |
|
Other Income |
84,207 |
|
- |
|
Change in fair value - Miner Lease Agreement |
379,065 |
|
- |
|
Share based compensation |
(764,390 |
) |
(1,165,542 |
) |
|
|
|
Operating income |
512,644 |
|
228,269 |
|
Net financial expenses |
(84,375 |
) |
(155,312 |
) |
Net income before taxes |
428,269 |
|
72,957 |
|
Deferred tax expense |
(368,771 |
) |
- |
|
Net income for the period |
59,498 |
|
72,957 |
|
Foreign currency translation adjustment |
947,199 |
|
1,456 |
|
Revaluation of digital currency, net of tax |
(620,761 |
) |
5,836,561 |
|
Total comprehensive income for the period |
385,936 |
|
5,910,974 |
|
Basic and diluted income per shareWeighted average number of
subordinate voting shares outstanding – diluted |
0.0027,685,913 |
|
0.0014,771,251 |
|
At-the-Market Financing
Update
On March 4, 2022, the Company entered into an
offering agreement with H.C. Wainwright & Co., LLC as agent,
pursuant to which the Company established an at-the-market equity
program (the “ATM Program”). From the commencement of the ATM
Program through to the date hereof, the Company has not issued any
securities pursuant to the ATM Program.
About Digihost
Digihost is a growth-oriented blockchain
technology company primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 450 PH/s.
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 are based on expectations, estimates and
projections as at the date of this news release and are covered by
safe harbors under Canadian and United States securities laws.
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
the Company’s expansion efforts, 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; future capital needs and uncertainty of additional
financing, including the Company’s ability to utilize the Company’s
at-the-market offering program (the “ATM Program”) and the prices
at which the Company may sell securities in the ATM Program, as
well as capital market conditions in general; share dilution
resulting from the ATM Program and from other equity issuances;
risks relating to the strategy of maintaining and increasing
Bitcoin holdings and the impact of depreciating Bitcoin prices on
working capital; regulatory and other unanticipated issues that
prohibit us from declaring or paying dividends to our shareholders
that are payable in Bitcoin; 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; approval of the Public Service
Commission or other regulatory or board approvals being received on
a timely basis, or at all; the acquisition of North Tonawanda, New
York facilities closing on timely basis, or at all; ability to
access additional power from the local power grid; 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; the ability to maintain reliable and economical sources of
power to run its cryptocurrency mining assets; the negative impact
of regulatory changes in the energy regimes in the jurisdictions in
which the Company operates; the ability to adhere to Digihost’s
dividend policy and the timing and quantum of dividends based on,
among other things, the Company’s operating results, cash flow and
financial condition, Digihost’s current and anticipated capital
requirements, and general business conditions; 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 uncertainties therein.
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