Digihost Announces Record Revenue From Digital Currency Mining for Q2 2021
August 04 2021 - 7:05AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce its financial results for the second quarter ended June
30, 2021 (all amounts in U.S. dollars, unless otherwise indicated).
Revenue from digital currency mining was $5.1
million in the second quarter of 2021, a 369% increase over the
corresponding quarter in 2020, and a 7% increase over the previous
quarter. The Company generated cash flow of $20.3 million in the
second quarter of 2021, up significantly from $95k for the same
period in 2020, and $7.1 million higher than the previous quarter.
Gross profit increased to $2.9 million compared to a gross loss of
$1.0 million in Q2 of 2020 and is $0.8 million higher compared to
Q1 of 2021.
Michel Amar, CEO of Digihost, stated: “We are
proud of the record top-line revenue growth, as well as gross
profit from mining, achieved by Digihost during the second quarter
of 2021. As a Company, we are looking forward to building on these
results through the expansion of our mining capacity and strategic
co-location agreements in order to continue to deliver record
revenue and profit for our shareholders.”
Second Quarter 2021 Financial
Highlights
The following information compares the financial
results of the Company for the three months ended June 30, 2021
(“2021”) and the three months ended June 30, 2020
(“2020”):
- Record revenue from digital
currency mining of $5.1 million reported in 2021, compared to $1.1
million in 2020, an increase of 369%;
- Gross profit margin from operations
was 58% in 2021 compared to a gross loss margin from operations of
94% million in 2020;
- Generated Adjusted EBITDA of $2.7
million in 2021, a significant increase from $169k in 2020.
The following information compares the financial
position of the Company as at June 30, 2021
(“2021”) and as at December 31, 2020
(“2020”):
- Cash balance of $20.3 million in
2021 compared to $0.03 million in 2020, an increase of $20.27
million;
- Digital currencies balance of $13.7
million in 2021, comprised of 351.94 Bitcoins and 563.89 Ethereum,
compared to $4.5 million in 2020, comprised of 153.72 Bitcoins and
0 Ethereum, an increase of $9.2 million and 198 Bitcoins and 564
Ethereum;
- Total assets of $68.4 million in
2021 compared to $16.5 million in 2020, an increase of $51.9
million;
- Total liabilities of $4.8 million
in 2021 compared to $6.1 million in 2020, a decrease of $1.3
million; and
- Total shareholders’ equity of $63.6
million in 2021 compared to $10.4 million in 2020, an increase of
$53.2 million.
Recent Highlights
- On June 21, 2021, the Company
closed a private placement of 8,333,333 units at a price of
CAD$1.80 per unit for gross proceeds of CAD$15 million, bringing
the total the Company has closed in equity financings during the
first half of 2021 to CAD$69.2 million;
- On June 22, 2021, the Company
announced that it had filed its Form 40-F with the U.S. Securities
and Exchange Commission, fulfilling a significant milestone for a
listing on Nasdaq;
- The Company became a signatory to
the Crypto Climate Accord, an initiative modeled on the Paris
Climate Agreement, which aligns with the Company’s own DigiGreen
initiative;
- On June 10 and June 26, 2021,
respectively, the Company formed a strategic collaboration with Bit
Digital USA, Inc. to increase the Companies’ combined hashrates by
2.4 EH;
- The Company’s
current cryptocurrency holdings are comprised of 402.19 Bitcoin and
563.89 Ethereum.
Michel Amar commented: “Our long-term vision and
business strategy is to increase our mining capacity and continue
to grow as a leader in the blockchain technology space. The efforts
we have undertaken in the past few months illustrate our commitment
to pursuing every opportunity in this sector as well as our
sustained efforts to generate significant shareholder value in an
environmentally conscious manner.”
(U.S.$ except per share data) |
Three Months Ended June 30 |
For the periods ended as indicated |
2021 |
|
2020 |
|
Revenue from digital currency mining |
5,112,553 |
|
1,089,877 |
|
Operating and maintenance costs |
(1,803,223 |
) |
(1,023,457 |
) |
Depreciation |
(361,628 |
) |
(1,089,870 |
) |
Gross profit (loss) |
2,947,702 |
|
(1,023,450 |
) |
General and administrative and other expenses |
(3,167,377 |
) |
(479,030 |
) |
|
|
|
Operating loss |
(219,675 |
) |
(1,502,480 |
) |
Net financial expenses |
(59,174 |
) |
(21,280 |
) |
Net loss for the period |
(278,849 |
) |
(1,523,760 |
) |
|
|
|
Other comprehensive income |
|
|
Foreign currency translation adjustment |
806,492 |
|
- |
|
Revaluation of digital currency (1) |
(7,476,828 |
) |
228,894 |
|
Total comprehensive income (loss) |
(6,949,185 |
) |
(1,294,866 |
) |
Basic and diluted loss per share – dilutedWeighted average number
of subordinate voting shares outstanding – basic and diluted |
(0.00)66,484,618 |
|
(0.04)40,073,661 |
|
EBITDA (2) |
82,779 |
|
(433,890 |
) |
Adjusted EBITDA (2) |
2,688,543 |
|
169,371 |
|
- Non-IFRS
measure. A reconciliation to its nearest IFRS measures is provided
under "Adoption of new accounting policies – Digital Currencies" in
the Company’s MD&A.
- Non-IFRS
measure. A reconciliation to its nearest IFRS measures is provided
under "Adjusted EBITDA – Non-GAAP Measure" in the Company’s
MD&A.
Financial Statements and MD&A
The Company’s Condensed Interim Consolidated
Financial Statements and Management’s Discussion and Analysis
(“MD&A”) thereon for the three and six months
ended June 30, 2021, will be accessible on SEDAR
at www.sedar.com under Digihost’s profile.
About Digihost Technology
Inc.
Digihost Technology Inc. is a growth-oriented
blockchain technology company primarily focused on Bitcoin mining.
The Company is currently hashing at a rate of 200PH with plans to
expand to a hashrate of 3.6 EH by the end of the first half of
2022.
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 in this news
release. 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 news 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 hashrate expansion, diversification of
operations, 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:
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; the
ability to establish new facilities for the purpose of research
& development; a decrease in cryptocurrency pricing, volume of
transaction activity or generally, the profitability of
cryptocurrency mining; delivery of mining rigs for hosting may not
be realized in the number anticipated, or at all, and resulting
hashing power may materially differ from that anticipated; 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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