Digihost’s October Bitcoin Production Value Increases 1,486% Over October 2020 and up 56% From September
November 15 2021 - 7:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; Nasdaq: DGHI), an
innovative North American based Bitcoin self-mining company, is
pleased to provide an unaudited Bitcoin (“
BTC”)
production update for the month ended October 31, 2021. All amounts
are expressed in USD unless otherwise indicated. The Company is
also pleased provide a reminder that trading on the Nasdaq Capital
Market is expected to commence on the date hereof, under the symbol
“DGHI.”
Corporate Highlights for October
2021:
- Produced 41.84 BTC during the
month, increasing total holdings to 494.08 BTC representing a fair
market value of approximately $30.3 million as of October 31,
2021.
- Total Ethereum
(“ETH”) holdings of 1,000.89 ETH representing a
fair market value of approximately $4.3 million as at October 31,
2021.
- Total digital asset inventory value
consisting of BTC and ETH of approximately $34.6 million at the end
of October.
- Cash on hand at October 31st was
approximately $9.7 million, and total cash and digital asset
holdings was approximately $44.3 million.
- Year-to-date deposits on equipment
and infrastructure targeted to be installed in Q4 2021 and H1 2022
pertaining to the Company’s core business of approximately $30.8
million.
- During October, the Company
received 4,932 new, technologically advanced, high-performance M30
Bitcoin miners (the “Miners”), with over 1,000
additional Miners in transit to the Company’s data center.
- The Company’s
current hashrate is approximately 400PH and is expected to increase
to approximately 500PH by the end of November, representing an
increase of approximately 150% since September of 2021.
Bitcoin Mining Update
For the ten-month period ended October 31, 2021,
the Company’s mining fleet produced 390.09 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 4, 2021: 41.84 BTC
Year-Over-Year Monthly
Comparison
The Company mined approximately 30.10 more BTC
in October of 2021, compared to October 2020, representing an
increase of approximately 256%. Using the October 31, 2021 and the
October 31, 2020 closing BTC prices (per CoinDesk) plus the
increase in BTC mined in October 2021, the value of the Company’s
BTC mined in October 2021 increased by approximately $2.4 million,
or 1,486% over October 2021.
Figure 1. Year-over-year Monthly BTC
Production
|
|
|
|
|
Oct-20 |
Oct-21 |
MoM Increase |
Mined
BTC |
|
11.74 |
|
41.84 |
|
30.10 |
Approximate BTC value |
$13,781 |
$61,319 |
$47,538 |
Value |
$161,789 |
$2,565,587 |
$2,403,798 |
|
|
|
|
Month-Over-Month Comparison
The Company mined an additional 4.17 BTC during
October 2021 compared to September 2021, representing an increase
of 11%. Based on October 31, 2021and September 30, 2021 closing BTC
prices plus the increase in BTC mined in October, the value of the
Company’s BTC mined in October increased by approximately $0.9
million, or 56%, month over month.
Figure 2. Month-over-month BTC Production
|
|
|
|
|
Sep-21 |
Oct-21 |
MoM Increase |
Mined
BTC |
|
37.67 |
|
41.84 |
|
4.17 |
Approximate BTC value |
$43,791 |
$61,319 |
$17,528 |
Value |
$1,649,725 |
$2,565,587 |
$915,980 |
|
|
|
|
Management Commentary
Michel Amar, the Company’s CEO, stated: “The
increase in BTC production in October 2021 signifies continued
operational success for Digihost and demonstrates the preliminary
incremental mining rewards being generated as result of the arrival
and deployment of new advanced machines at our data center. With
additional miners expected to arrive in the weeks ahead, we will
focus on optimizing our mining fleet as older machines are cycled
out of production and replaced with cutting-edge models, which
should enable us to substantially grow our hashrate and continue
our strategy of increasing monthly coin production.”
About Digihost Technology
Inc.
Digihost is a growth-oriented blockchain
technology company primarily focused on Bitcoin
mining. Through its self-mining operations and joint venture
agreements, the Company is currently hashing at a rate of
approximately 400PH with plans to expand to a hashrate of 3.6 EH by
the end of 2022.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive Officer
Email: 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 are based on
expectations, estimates and projections as at the date of this news
release and are covered by safe harbors under U.S. and Canadian
securities laws. 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. Except
as expressly required by applicable securities laws, the Company
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, changed
circumstances or future events or for any other reason.
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