Digihost Announces 44% Increase in Monthly Bitcoin

Toronto, May 4, 2022 (GLOBE NEWSWIRE) – Digihost Technology Inc. (“Digihost“or the”company“) (Nasdaq: DGHI; TSXV: DGHI), a US-based innovative Bitcoin (”BTCMining Company, to submit unaudited Bitcoin production results for the month ending April 30, 2022, along with Operations Update. All monetary references are expressed in US dollars unless otherwise noted.

Production highlights for April 2022

  • 109.03 BTC were mined, resulting in a total holdings of 797.28 BTC at the end of April valued at approximately $30.1 million based on the BTC price of $37,715 as of April 30, 2022.
  • Ethereum (“ETH”) holdings of 1,000.89 ETH at the end of April valued at approximately $2.7 million based on the ETH price of $2,730 as of April 30, 2022.
  • The total value of the digital asset stock, which consists of BTC and ETH, is approximately $32.8 million as of April 30, 2022.
  • In line with the company’s stated goal to avoid diluting shareholder equity, management sold a portion of its bitcoin production during the month to fund energy costs.

Compare month by month

The company mined an additional 33.44 bitcoins during April 2022 compared to March 2022, an increase of 44%. Based on the closed bitcoin prices on April 30, 2022 and March 30, 2022, the value of the BTC miner in April increased by about $0.7 million, or 20% per month.

Figure 1. Bitcoin Production on a Monthly Basis

April 22
March 22
monthly increase
BTC mining 109.03 75.58 33.44
Approximate BTC Value $37715 $45,539 ($7,824 )
production value $4,112,066 $3,426,354 $685,712

Annual comparison on a monthly basis

The company increased mining production by 71.51 BTC in April 2022, compared to April 2021, which represents an increase of 191%. Based on closing Bitcoin prices on April 30, 2022 compared to April 30, 2021, the value of Bitcoin mined for the company in April 2022 increased by about $1.9 million, or 89.8%, compared to April 2021.

Figure 2. Monthly Bitcoin Production Year on Year

April 22
April 21
monthly increase
BTC mining 109.03 37.52 71.51
Approximate BTC Value $37715 $57,750 ($20,035 USD .) )
production value $4,112,066 $2,166,787 $1,945,280

Process update

During April 2022, Digihost successfully completed the electrical testing phases of the company’s infrastructure construction in North Tonawanda. The company has demonstrated its ability to maintain overall operating levels at approximately 1 EH/s while meeting all internal assessment qualifications. The test was completed in an efficient manner by temporarily accessing power from the local electric power grid.

As previously revealed, the company is awaiting approval from the New York Public Service Commission to complete the acquisition of this 60-megawatt power plant in North Tonawanda. The company expects its retail power to decline in May 2022 until the acquisition is completed, and in the meantime, it has submitted an application to the utility provider for a permanent allotment of power at its North Tonawanda site.

operational expansion

The company recently acquired 25 acres of land in North Carolina on escrow in conjunction with ongoing negotiations for a 200MW power infrastructure program which is expected to be completed and operational by the end of the third quarter of 2023.

green energy

A hallmark of Digihost’s strategic growth plan has been access to clean energy sources while also agreeing to on-demand programs with utilities that allow the company to provide the immediate energy needs of local communities during extreme weather conditions. The company is pleased to announce that during April 2022 while the BTC mining operation was operating at more than 1 EH/s, more than 90% of the energy consumed by its operations was derived from non-carbon sources.

Market Finance Update

On March 4, 2022, the Company entered into a Offer Agreement with HC Wainwright & Co., LLC as an agent pursuant to which the Company established the Stock Market Program (the “ATM Program”). Since the inception of the ATM program to date, the company has not issued any securities under the ATM program.

About Digihost

Digihost is a growth-oriented blockchain technology company that primarily focuses on BTC mining. Through self-mining operations and joint venture agreements, the company is currently retailing 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 more information, please contact:

Digihost Technology Inc.
Michel Ammar, CEO
Tel: 1-818-280-9758
Email: michel@digihost.ca

cautionary statement
Trading in the company’s securities should be considered highly speculative. No stock exchange, the Securities Commission or any other regulatory authority has approved or rejected the information contained herein. Neither TSX Venture Exchange nor the Regulatory Services Provider (as defined in the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this release.

forward-looking statements
Except for statements of historical fact, this press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections at the date of this press release and are covered by safe harbors under Canadian and US securities laws. The forward-looking information contained in this press release includes information about potential incremental improvements to profitability and efficiency across mining operations Including, as a result of the company’s expansion efforts, acquisitions of equipment and infrastructure, the company’s long-term growth potential, and the company’s business and objectives. Factors that could cause actual results to differ materially from those described in this forward-looking information include, but are not limited to: the ability to obtain regulatory approval and complete acquisition of equipment and infrastructure on terms as announced or at all; The ability to successfully integrate the acquisition of equipment and infrastructure on an economical or all-inclusive basis; Future capital needs and uncertainty about additional financing, including the Company’s ability to take advantage of the Company’s market presentation program (“ATM Program”) and the prices at which the Company may sell securities in the ATM program, as well as capital market conditions more generally. public ; stock dilution resulting from the ATM program and other stock issuances; Risks related to the strategy of maintaining and increasing bitcoin holdings and the impact of lower bitcoin prices on working capital; regulatory and other unforeseen issues that prevent us from declaring or paying dividends to our shareholders payable in bitcoin; The continuing effects of the COVID19 pandemic may have a material negative impact on company performance as supply chains are disrupted and the company is prevented from operating its assets; obtain Public Service Commission approval or other regulatory or board approval at the appropriate time, or at all; Acquisition of North Tonawanda, New York facilities, closing in time, or closing at all; the ability to access additional power from the local power grid; a decrease in the price of cryptocurrencies, the volume of transaction activity or, in general, the profitability of cryptocurrency mining; Further improvements to profitability and efficiency may not be realized; digital currency market; The company’s ability to successfully mine digital currencies on the cloud; The company may not be able to profitably liquidate its existing cryptocurrency stock, or at all; The decline in cryptocurrency prices may have a significant negative impact on the company’s operations; volatility of cryptocurrency prices; and other related risks as fully set forth in the Company’s Annual Information Form and other documents disclosed pursuant to the Company’s filings 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 information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about: current profitability in cryptocurrency mining (including pricing and current transaction activity volume); profitable use of the company’s assets in the future; The company’s ability to profitably liquidate its digital currency inventory as required; The 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 economical energy sources for powering cryptocurrency mining assets; the negative impact of regulatory changes in the energy systems of the jurisdictions in which the company operates; the ability to adhere to Digihost’s dividend policy and the timing and amount of dividends based on, among other things, the company’s operating results, cash flows and financial condition, Digihost’s current and projected capital requirements, and general business conditions; There will be no regulation or law that prevents the company from conducting its business. The company has also assumed that there are no significant events that fall outside the company’s normal business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, the forward-looking information is not a guarantee of future performance, and therefore it should not place undue reliance on such information due to its inherent uncertainties.

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