Digihost Reports an 86% Increase in Y/Y Bitcoin Production and Provides Update on Miners Received and Deployed
February 01 2022 - 7:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative North American based Bitcoin self-mining company, is
pleased to provide unaudited Bitcoin (“
BTC”)
production updates for the month ended January 31, 2022. All
amounts are expressed in USD unless otherwise indicated.
Year-Over-Year Monthly
Comparison
The Company mined approximately 62.58 BTC in
January 2022, an increase of 28.88 BTC or 86% compared to January
2021. Using the January 31, 2022 and January 31, 2021 closing BTC
prices (from CoinDesk), respectively, the value of the Company’s
BTC mined in January 2022 increased by approximately $1.3 million,
or approximately 116%, compared to January 2021.
Figure 1. Year-over-year Monthly BTC
Production
|
|
|
|
|
Jan-21 |
Jan-22 |
YoY Increase |
Mined
BTC |
|
33.70 |
|
62.58 |
|
28.88 |
Approximate BTC value |
$ |
33,139 |
$ |
38,500 |
$ |
5,361 |
Value |
$ |
1,116,784 |
$ |
2,409,330 |
$ |
1,292,546 |
|
|
|
|
Production Highlights for January
2022
- Mined 62.58 BTC increasing total
holdings to 698.64 BTC valued at approximately $26.9 million as of
January 31, 2022 based on a month end BTC price of $38,500.
- Total Ethereum
(“ETH”) holdings of 1,000.89 ETH valued at
approximately $2.7 million as of January 31, 2021 based on a month
end ETH price of $2,650.
- Total digital
currency inventory value consisting of BTC and ETH of approximately
$29.6 million as of January 31, 2022.
- The Company’s current hashrate is
approximately 415PH and is expected to increase to approximately
1.2EH by the end of Q1 2022.
Michel Amar, the Company’s CEO, commented:
“Digihost is very pleased to announce the continuation of our
strong operating performance for the first month of 2022, resulting
in an 86% increase in coins mined compared to January 2021. Over
the course of 2022 the Company will adhere to its plan to increase
mining capacity through the expansion of mining infrastructure
coupled with the acquisition of the latest generation miners, while
continuing to be a low-cost producer of Bitcoin.”
Miner Receipt and Deployment
Update
- As of January 31, 2022, the Company
has received approximately 9,000 technologically advanced,
high-performance M30 Bitcoin Miners (the “Miners”)
from its 2021 purchase order of 9,900 Miners from Northern Data
AG.
- The remaining Miners from this
order are expected to arrive at Digihost’s data center by the end
of February 2022.
- Digihost began
initial deployment of Miners received in Q4 2021 and expects to
have them fully operational by the end of Q2 2022. A portion of
these Miners was related to the Company’s Miner lease agreement
with Northern Data, NY LLC, pursuant to which the parties have
agreed to split a portion of the mining rewards received and energy
costs incurred for the Miners put in service pursuant to the Miner
lease agreement.
Management Appointment
Digihost is pleased to announce the appointment
of Mr. Donald Christie as the Company’s Chief Operating
Officer.
Mr. Christie has served as the Chair of the
Company’s Audit Committee since February of 2020 when the Company
completed its reverse takeover transaction. During that time Mr.
Christie has worked closely with management in the development and
financing of the Company’s growth strategy. Mr. Christie, who will
continue to serve as a member of the Board of Directors, brings
over 35 years of experience in debt and equity capital markets,
including over 10 years of senior operational experience in the
resource industry, to his new role as Chief Operating Officer. He
will be responsible for working closely with the executive
management team to maximize mining infrastructure growth, optimize
financing structures to fund growth and manage relationships with
both institutional and retail investors. Mr. Christie earned a
Bachelor of Commerce Honours Degree from Queen’s University and
received his CPA designation while working for PriceWaterhouse
Coopers, LLP.
“Please join me in welcoming Mr. Christie to his
new role with Digihost as COO,” said Michel Amar. “Having worked
closely with Don over the last two years, I am confident that his
tenure as a valued Board member of the Company, experience in North
American capital markets, and his strong commitment to Digihost
will enhance our team’s ability to continue to capitalize on the
exciting growth opportunities before us in the rapidly evolving
crypto currency industry.”
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 415PH 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 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 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 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 and infrastructure 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
cryptocurrency mining; receipt of Public Service Commission
approval or other regulatory or board approvals; 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 self-mining and
for hosting may not be realized in the number anticipated, or at
all, or on the schedule anticipated, 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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