Digihost announces the construction of the infrastructure of a 55 MW site in Alabama and provides monthly updates on bitcoin production

This press release constitutes a “designated press release” for the purposes of the Company’s prospectus supplement dated March 4, 2022 to its abbreviated basic shelf prospectus dated February 23, 2022.

TORONTO, 02 August 2022 (GLOBE NEWSWIRE) – Digihost Technology Inc. (“Digihost“or the”Agency“) (Nasdaq: DGHI; TSXV: DGHI), an innovative Bitcoin based in the United States (“BTC”) Mining company, is pleased to provide non-certified comparative BTC production results for the month ended July 31, 2022, along with an operational update. All monetary references are expressed in USD unless otherwise indicated.

Production Highlights for July 2022

  • I mined 64.17 BTC, getting a total of 220.09 BTC at the end of July worth around $ 5.14 million based on a BTC price of $ 23,337 as of July 31, 2022.

  • Ethereum (“ETH”) holdings of 1,000.89 ETH at the end of July were valued at approximately $ 1.68 million based on an ETH price of $ 1,681.52 as of July 31, 2022.

  • The total value of the digital asset inventory, consisting of BTC and ETH, was approximately $ 6.82 million as of July 31, 2022. In addition, the Company held cash of approximately $ 4.5 million and derivatives of approximately $ 500,000 as of July 31, 2022. Cash and Cash Assets as of July 31, 2022 amounted to approximately $ 11.82 million.

  • To avoid dilution of equity for its shareholders, management sold a portion of its BTC production during the month to finance its energy costs.

  • The Company is debt free as of July 31, 2022.

  • To support the energy needs of the local community, the Company reduced its overall energy consumption in July 2022, operating mainly during off-peak hours.

Year-over-year monthly comparison

The Company mined approximately 13.69 BTC more in July 2022, compared to July 2021, an increase of approximately 26.7%.

Figure 1. Monthly BTC production year over year

Jul-22

Jul-21

Monthly increase

BTC mined

64.97

51.28

13.69

Approximate value of BTC

$ 23,337

$ 41,626

($ 18,289

)

Production value

$ 1,516,205

$ 2,134,581

($ 618,376

)

Year-to-year comparison from the beginning of the year

The Company mined approximately 160.46 BTC more on a year-to-date basis to July 31, 2022, compared to the same period ending July 31, 2021, an increase of approximately 46.7%.

Figure 2. BTC production year-over-year from the start of the year

From the beginning of the year 2022

From the beginning of the year 2021

Increase since the beginning of the year

BTC mined

503.83

343.37

160.46

Approximate value of BTC

$ 23,337

$ 41,626

($ 18,289

)

Production value

$ 11,757,881

$ 14,293,120

($ 2,535,239

)

Construction site in Alabama

Digihost is pleased to announce that it has begun construction and development of the facilities under construction in Alabama. The Company is building the necessary infrastructure with the aim 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 support of its infrastructure expansion, the Company will move a portion of its existing mining fleet from New York State to the Alabama site to allow Digihost to benefit from the lower direct energy costs it has negotiated with Alabama Power, which will lead to a reduction. of Digihost’s operating costs.

Green energy

From the outset, Digihost’s strategic growth sustainability plan has been access to clean energy sources, while complying with on-demand programs with its utility providers that enable the company to meet energy needs. urgent for local communities in extreme weather conditions. The Company is pleased to announce that in July 2022, Digihost performed its BTC mining operation mainly in off-peak hours to support the energy needs of surrounding neighborhoods with over 90% of the energy consumed by its operations derived from sources that create zero carbon emissions.

In addition, during the month of July, CPower Energy Management was selected as the best project of the year by the elite Environment and Energy Leader Awards program for its program, with Digihost. CPower is a provider of natural energy solutions and works in concert with the company to reduce its environmental impact by responding to demand. Digihost is awarded on a quarterly basis for making its site’s electrical load available to help balance the grid when required, supporting the broader sustainability commitments of zero net emissions from electricity consumption by 2030 and 100% blockchain powered by renewables.

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 production costs in the Company’s consolidated financial statements.

For more information, please contact:

Digihost Technology Inc.
www.digihost.ca
Michel Amar, managing director
T: 1-818-280-9758
Email: michel@digihost.ca

Cautionary Statement

Trading in the Company’s securities should be viewed as highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein. Neither the TSX Venture Exchange nor its regulatory service 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 historical factual statements, this press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) which are based on expectations, estimates and projections as of the date of this press release and are covered by ports safe under Canadian and US securities laws. The forward-looking information in this press release includes information on potential further improvements to profitability and efficiency in mining operations including, as a result of the Company’s expansion efforts, the Company’s long-term growth potential and the Company’s business goals and objectives. 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 funding, including the Company’s ability to use the Company’s offering program on the market (the “ATM Program”) and the prices at which the Company may sell securities in the ATM Program, as well as the conditions of the capital market in general; dilution of shares resulting from the ATM Program and other share issues; risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of the depreciation of Bitcoin prices on working capital; regulatory and other unforeseen matters that prohibit us from declaring or paying dividends payable in Bitcoin to our shareholders; the persistent effects of the COVID19 pandemic can have a material adverse effect on the Company’s performance as supply chains are disrupted and prevent the Company from managing its resources; Public Service Commission approval or other regulatory or council approvals received in a timely manner, or at all; the acquisition of facilities in North Tonawanda, New York which close promptly, or completely; possibility to access additional energy from the local electricity grid; a decrease in the prices of cryptocurrencies, the volume of transaction activities or, in general, the profitability of cryptocurrency mining; further improvements in 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 prices of digital currencies; and other related risks, as better specified in the Company’s Annual Information Form and in other documents disclosed based on the documents filed by the Company on www.sedar.com. The forward-looking information contained in this press release reflects the Company’s current expectations, assumptions and / or beliefs based on the information currently available to the Company. In connection with the forward-looking information contained in this press release, the Company has made assumptions about: the current profitability in cryptocurrency mining (including prices and the volume of current transaction activities); profitable use of the Company’s assets in the future; the Company’s ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the Company’s ability to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and affordable energy sources to manage its cryptocurrency mineral resources; the negative impact of regulatory changes to energy regimes in the jurisdictions where the Company operates; the ability to adhere to Digihost’s dividend policy and the timing and amount of dividends based on, inter alia, the Company’s operating results, cash flow and financial condition, Digihost’s current and anticipated capital requirements; and the general business conditions; and there will be no regulation or law that will prevent the Company from carrying out its business. The Company has also assumed that no significant events will occur outside the normal course of business of the Company. While the Company believes that forward-looking information assumptions are reasonable, forward-looking information does not constitute a guarantee of future performance and therefore such information should not be relied upon due to the inherent uncertainties contained therein.

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