Digihost Completes Acquisition of 55 MW Site in Alabama
June 22 2022 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to announce that it has completed its
previously announced transaction with Grede II, LLC to acquire
property in the state of Alabama in order to expand the Company’s
current operational capacity. The total cash consideration paid for
the property by the Company was $1.5 million, with an additional
$1.25 million to be paid in 25 equal monthly installments of
$50,000 per month. All monetary references in this press release
are expressed in USD unless otherwise indicated.
“The successful acquisition of our new site in
Alabama marks a significant milestone in Digihost’s history, firmly
establishing the Company as a leading Bitcoin mining platform
operating with jurisdictional diversification,” said Michel Amar,
Chairman and CEO of Digihost. “With Digihost’s capability to build
out the existing infrastructure in place at the property and
implement best-in-class construction, development, and operational
excellence, the Company is well-positioned to increase the scale
and scope of its operations with this new site while utilizing
clean and renewable energy sources in the process.”
Digihost plans to immediately commence
construction and the development of the facilities in Alabama with
the goal of bringing the property to a hashing capacity of 28 MW by
the end of the third quarter of 2022 and a total of 55 MW by the
end of the first quarter of 2023. In line with this capacity
expansion, the Company’s intention is to send a portion of its
existing mining inventory to Alabama to allow Digihost to capture
significant synergies, which, in concert with the lower direct
energy costs it is procuring from Alabama Power, will help reduce
the Company’s overall operational costs.
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 650 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 in Alabama and
elsewhere, 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; development of additional facilities to
expand operations in Alabama may not be completed on the timelines
anticipated by the Company, or at all; 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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