Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to provide unaudited BTC production results for
the month ended May 31, 2022, combined with an operations update.
All monetary references are expressed in USD unless otherwise
indicated.
Production Highlights for May
2022
- Mined 70.47 BTC, resulting in total
holdings of 637.66 BTC at the end of May valued at approximately
$20.37 million based on a BTC price of $31,950 as of May 31,
2022.
- Ethereum (“ETH”)
holdings of 1,000.89 ETH at the end of May valued at approximately
$2 million based on an ETH price of $2,000 as of May 31, 2022.
- Total digital asset inventory
value, consisting of BTC and ETH, of approximately $22.37 million
as of May 31, 2022.
- In order to avoid equity dilution
for its shareholders, management sold a portion of its BTC
production during the month to fund its energy costs.
- Liquid assets attributable to
investments in cryptocurrency operation valued approximately $2.8
million in addition to cash on hand of approximately $5
million.
Year-Over-Year Quarterly
Comparison
The Company mined an additional 107.72 BTC
during the first two months of the second quarter of 2022 compared
to the same time frame of 2021, an increase of 150%. Based on BTC
prices on May 31, 2022 and May 31, 2021, the value of the Company’s
BTC mined in the first two months of the second quarter of
2022increased by approximately $3.1 million, or 114%, year over
year.
Figure 1. Year-over-year quarter to date BTC
Production
|
|
|
|
|
QTD Q2 2022 |
QTD Q2 2021 |
QoQ Increase |
|
Mined
BTC |
|
179.50 |
|
71.78 |
|
107.72 |
|
Approximate BTC value |
$ |
31,950 |
$ |
37,333 |
($ |
5,383 |
) |
Value |
$ |
5,735,025 |
$ |
2,679,763 |
$ |
3,055,262 |
|
|
|
|
|
Year-Over-Year Monthly
Comparison
The Company increased mining production by 36.21
BTC in May 2022 compared to May 2021, representing an increase of
106%. Based upon BTC prices on May 31, 2022 compared to May 31,
2021, the value of the Company’s BTC mined in May 2022 increased by
approximately $1 million, or 76%, compared to May 2021.
Figure 2. Year-over-year Monthly BTC
Production
|
|
|
|
|
May-22 |
May-21 |
MoM Increase |
|
Mined
BTC |
|
70.47 |
|
34.26 |
|
36.21 |
|
Approximate BTC value |
$ |
31,950 |
$ |
37,333 |
($ |
5,383 |
) |
Value |
$ |
2,251,517 |
$ |
1,279,029 |
$ |
972,488 |
|
|
|
|
|
Quarter-Over-Quarter
Comparison
The Company mined an additional 67.90 BTC during
the first two months of the second quarter of 2022 compared to the
first two months of the first quarter of 2022, representing an
increase of 61%.
Figure 3. Quarter-over-quarter to date BTC
Production
|
|
|
|
|
QTD Q2 2022 |
QTD Q1 2022 |
QoQ Increase |
|
Mined
BTC |
|
179.50 |
|
111.60 |
|
67.90 |
|
Approximate BTC value |
$ |
31,950 |
$ |
43,193 |
($ |
11,243 |
) |
Value |
$ |
5,735,025 |
$ |
4,820,339 |
$ |
914,686 |
|
|
|
|
|
Partial Loan payoff
On March 2, 2022, the Company announced the
closing of a $10 million committed, collateralized revolving credit
facility with Securitize, Inc. (the “Loan
Facility”). The Loan Facility provided Digihost with,
non-dilutive liquidity options to assist in the financing of its
growth strategy.
The Company is pleased to announce that as of
the date hereof, it has paid back approximately $4 million of the
fully drawn facility and intends to pay the residual amount owed
under the Loan Facility throughout the remainder of 2022.
Normal Course Issuer Bid
Program
During May 2022, Digihost announced that it had
received approval to undertake, at the Company’s discretion, a
normal course issuer bid program (“NCIB”) to
purchase up to 1,219,762 of its subordinate voting shares for
cancellation. The NCIB was commenced due to the fact that, from
time to time, the Company may consider that the market price of its
subordinate voting shares do not accurately reflect the underlying
value of the Company’s business.
ATM Program
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 and will not
issue any securities pursuant to the ATM Program while the Company
purchases shares pursuant to the NCIB.
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.
All hosting fees and joint venture profit
sharing are treated as operating expenses in the Company’s
consolidated financial statements.
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” 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, 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: 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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