Digihost Provides Mining Operation Results for Q3 2021 and Announces a 218% Increase in Quarterly Bitcoin Production Over the Previous Years’ Quarter
October 04 2021 - 7:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF), an
innovative North American based Bitcoin self-mining company, is
pleased to provide unaudited Bitcoin (“
BTC”)
production updates for the quarter ended September 2021. All
amounts are expressed in USD unless otherwise indicated.
Corporate Highlights for September 30,
2021:
- Produced 133.02 BTC during the
quarter, increasing total holdings to 452.24 BTC representing a
fair market value of approximately $19.9 million as at September
30, 2021.
- Diversified holdings with the
conversion of 31.62 BTC into Ethereum (“ETH”)
during the quarter, bringing total ETH holdings to 1,000.89
representing a fair market value of approximately $3.0 million as
at September 30, 2021.
- Total digital asset inventory value
consisting of BTC and ETH of approximately $22.9 million at the end
of September.
- Cash on hand at September 30th was
approximately $17.2 million, and total cash and digital asset
holdings was approximately $40.1 million.
- Year-to-date deposits on equipment
and infrastructure to be completed in Q4 2021 pertaining to the
Company’s core business of approximately $24.8 million.
- Pursuant to its May 12, 2021 press
release, the Company is on target to put online the approximately
9,900 newest generation miners it has purchased before the end of
2021. Once fully installed, these miners will increase the
Company’s current hashrate to between approximately 925PH and
1.1EH.
Bitcoin Mining Update
For the nine-month period ended September 30,
2021, the Company’s mining fleet produced 348.25 BTC, with
production broken down as follows:
- Quarter 1, 2021: 105.26 BTC
- January: 33.70
- February: 35.02
- March: 36.54
- Quarter 2, 2021: 109.97 BTC
- April: 37.52
- May: 34.26
- June: 38.19
- Quarter 3, 2021: 133.02 BTC
- July: 51.28
- August: 44.07
- September: 37.67
Quarter-Over-Quarter
Comparison
The Company mined approximately 23.05 more BTC
in Q3 2021 than in Q2 2021, representing an increase of 21%. Based
on the BTC prices in these respective quarters and the increase in
production of BTC mined, the fair market value of the Company’s BTC
mined on a quarter over quarter basis increased by approximately
$2m.
Figure 1. Quarter-over-quarter BTC Mining
|
|
|
|
|
Q2 |
Q3 |
QoQ Increase |
|
2021 |
2021 |
|
Mined BTC |
|
109.97 |
|
133.02 |
|
23.05 |
Approximate BTC value |
$35,041 |
$44,010 |
$8,969 |
Value |
$3,853,441 |
$5,854,416 |
$2,000,976 |
|
|
|
|
Year-Over-Year Quarterly
Comparison
Compared to Q3 of 2020, the Company mined
approximately 91.22 more BTC in Q3 of 2021, representing an
increase of 218%. Based on September 30, 2021 BTC prices compared
to September 30, 2020, and the increase in production of BTC mined,
the fair market value of the Company’s BTC mined in Q3 2021
increased by approximately $5.4 million.
Figure 2. Year-over-year Quarterly BTC Mining
|
|
|
|
|
Q3 2020 |
Q3 2021 |
YoY Increase |
Mined BTC |
|
41.80 |
|
133.02 |
|
91.22 |
Approximate BTC value |
$10,788 |
$44,010 |
$33,222 |
Value |
$450,922 |
$5,854,416 |
$5,403,494 |
|
|
|
|
Management Commentary
Michel Amar, the Company’s CEO, stated: “We are
extremely pleased with the continued success achieved by Digihost
and are proud to report that in Q3 2021 we successfully mined a
higher fair market value of Bitcoin than in any previous quarter
since the Company’s inception. Our operations delivered a record
number of coins this quarter despite voluntarily giving up peak
hours of mining for five days during the month of August during
peak community energy demand.” Amar continued, “As a Company, we
are prepared to begin receiving a large quantity of new generation
miners in Q4 2021. We remain especially well situated to scale up
and thrive in the current mining environment and to increase our
hashrate to up to 1.5 EH in by Q1 2022. We are committed to
operating our business growth in an environmentally conscious way
and our priority is to sustain our focus on green energy and ESG
initiatives.”
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@digihostblockchain.com
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 news
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 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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