Digihost Announces Status of NASDAQ Listing Application and Expansion of Cryptocurrency Business Model
May 10 2021 - 7:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that further to its disclosure on April 14, 2021 of its
intention to seek access to a larger U.S. equity exchange, the
Company is currently in the advanced stages of the application
process for a listing of its securities on the Nasdaq Stock
Exchange (the “
NASDAQ”). In conjunction with the
application process, the Company expects to file a registration
statement with the Securities and Exchange Commission in the
near-term.
Stock Market ListingSince the
beginning of the year, due to increasing investor demand, the
Company decided to pursue an additional exchange listing for its
shares on a larger U.S. stock exchange. In early February, the
Company announced that its listing in the U.S. market had been
upgraded from the OTC Pink Sheets to the OTCQB. Thereafter in
March, the Company submitted an initial application for a listing
on the NASDAQ. The NASDAQ listing application process is subject to
a number of listing requirements and regulatory approvals, and as
such there can be no assurances that a listing will be granted.
Business StrategyBeginning in
November of 2020, there has been a substantial improvement in the
cryptocurrency sector and this period has been transformative for
Digihost, as the Company continues to achieve many significant
milestones in its evolution to become a top tier blockchain
technology company. A cornerstone of the Company’s business
strategy has been and continues to be the mining and holding of
Bitcoin (“BTC”) as efficiently as possible through
the strategic acquisition of latest generation BTC miners and the
vertical integration of low-cost sources of clean energy. The
Company is actively pursuing opportunities to expand its hashrate
to over 1EH by the end of 2021 and potentially to 3EH during the
first half of 2022 by filling the hashing capacity which will be
created by the recent acquisition of a 60MW power plant. Digihost
is also exploring opportunities to expand its infrastructure by
geographically diversifying in both the United States and
Canada.
Digihost continually evaluates market trends in
the blockchain and cryptocurrency space and seeks to manage risk
and capitalize on opportunities to enhance shareholder value. As
such, the Company is pleased to report that it has recently adopted
plans to expand its operations and business strategy to include
Ethereum technology and Ether ("ETH") as a
cryptocurrency in its portfolio. The adoption of Ethereum
technology will also contribute to the lowering of the Company’s
carbon footprint. In addition to its strong BTC mining operations,
the Company has the resources and capabilities to diversify into
Ethereum technology, which has broad applications and significant
potential for growth. The Company currently holds a balance of
563.88 ETH.
Michel Amar, the Company’s CEO, stated: “We are
excited to report on the status of our NASDAQ listing application.
Having access to a more liquid stock exchange in the United States,
will attract broader institutional interest in the Company’s shares
and provide Digihost with greater access to capital necessary to
fund our aggressive growth strategy over the next several years. We
are also pleased to share our plans to geographically expand, and
diversify our operations to include Ethereum technology as part of
our growth strategy. We believe Bitcoin and Ethereum have a strong
outlook and will position the Company to be able to capitalize on
current market trends, in order to generate increased value for our
shareholders.”
About Digihost Technology
Inc.
Digihost Technology Inc. is a growth-oriented
blockchain technology company primarily focused on Bitcoin mining.
The Company's mining facilities are located in Upstate New
York, and are equipped with 78.7 MW of low-cost power with the
option to expand to 102MW. The Company is currently hashing at a
rate of 200PH with potential to expand to a rate of 3EH upon the
completion of the previously announced acquisition of a 60MW power
plant.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief
Executive Officer Email: 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 is based on expectations, estimates and
projections as at the date of this news release. Forward-looking
information in this news release includes information about listing
on Nasdaq, hashrate expansion, diversification of operations to
include Ethereum technology, potential further improvements to
profitability and efficiency across mining operations, potential
for the Company’s long-term growth, and the business goals and
objectives of the Company. Factors that could cause actual results,
performance or achievements to differ materially from those
described in such forward-looking information include, but are not
limited to: risks relating to completion of the Nasdaq listing
process, 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; 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; 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 uncertainty therein.
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