Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to announce that it has entered into a
long-term deal to purchase community solar credits from a nearby
community solar farm (the “
Agreement”). The
project is located in National Grid territory, and is being managed
by the Williamsville, New York based energy supplier, EnergyMark.
The community solar project is 5MW in size and will produce roughly
9,500,000 kWh’s of clean electricity annually – enough to power
more than 1,000 homes.
Digihost’s current East Delavan, New York
facility will be the anchor subscriber to the project. This
facility is located in New York’s Zone-A region, where more than
90% of the power consumed is from zero emissions generation. The
long-term Agreement will further reduce Digihost’s already low
carbon footprint for its BTC mining operations and allow the
Company to apply the community solar credits received pursuant to
the Agreement against future utility bills. The solar farm is
expected to begin generating renewable electricity by Q4 2022.
In pursuit of its goal to be a leading ESG
organization, the Agreement was entered into by the Company in
accordance with its DigiGreen Initiative, whereby Digihost is
committed to achieving net zero emissions from its BTC mining
operations by 2030. In addition to nearly emission free electricity
at its East Delavan facility, Digihost currently participates in
several Demand Response programs, which aid in grid reliability
during times of heightened volatility, and further reduces carbon
emissions. The Company is currently mining with greater than 90%
zero emissions from its power consumption.
“Continued investment and support from the
Blockchain industry will accelerate the growth of renewable
electricity in the United States,” said Luke Marchiori, Digihost’s
Chief Renewable Energy Officer. “This long-term Community Solar
Agreement with EnergyMark demonstrates our continued commitment to
sustainable mining and renewable energy development. As we grow and
increase electricity consumption, we will align with additional
distributed energy resources that can further reduce our carbon
footprint and continue to provide essential grid reliability.”
Operations Update
At an operational level, Digihost increased its
current hashing capacity from 450 PH/s to 650 PH/s.
Regarding its infrastructure buildout in North
Tonawanda for its proposed power plant acquisition, the Company is
still awaiting approval from the Public Service Commission to
finalize that acquisition. The Company believes that the New York
State Senate Bill S6486D (the “Bill”) passed
by the New York State Senate on June 3, 2022 will not impact the
Company’s proposed acquisition or its operations at the North
Tonawanda plant. The Bill proposes a two-year moratorium on new or
renewed permits filed in the future for proof of work
cryptocurrency mining operations at fossil fuel plants in New York
State. The Bill awaits the approval of New York Governor Kathy
Hochul, who could sign or veto the legislation.
Based on the language of the Bill, in particular
Section 7, which states that the Bill is intended to “take effect
immediately and shall apply to all permits or renewal applications
filed after such date,” the Company believes that, should the
legislation be signed into law by the Governor, it will not apply
to the proposed operations in North Tonawanda, as the Company filed
renewal applications for that plant in 2021. In addition, the Bill
also would not prohibit continued operation or expansion of several
grid-powered cryptocurrency mining operations scattered across
upstate New York, including the Company’s East Delavan
facility.
Nick Williams, in-house counsel for the Company,
stated, “The passage of the moratorium in the New York State Senate
signals New York State’s (“NYS”) continued desire
to be a leader in developing technology for a clean future. Based
on the language of the Bill and the legislative record, it is our
understanding that we would be exempt from the Bill based on the
filing of our renewal application with the PSC in April of 2021 and
our filing with the DEC in November of 2021, in each case. In
addition, the Company is not using a retired plant but, rather,
adding use to a plant currently in operation, not only preserving
high-paying jobs in the North Tonawanda region but adding new jobs
as well. We continue to work with NYS officials to confirm this
understanding and to ensure we are in compliance with all rules
and regulations. As always, the Company remains committed to
our stated goals of leadership in both blockchain innovation and
climate conscious, forward-looking technology, as well as
supporting the power grid as NYS transitions to green energy.”
Additionally, the Company is pleased to announce
that it is currently evaluating opportunities for operational
expansion in North Carolina, Texas, Florida, and Maryland, visiting
potential sites for mining which fit Digihost’s model of mining
with low carbon emission generation and energy being generated from
renewable sources.
About Digihost
Digihost is a growth-oriented blockchain
technology company primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 650 PH/s.
All hosting fees and joint venture profit
sharing are treated as operating expenses in the Company’s
consolidated financial statements.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive
Officer T: 1-818-280-9758Email: 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 are based on expectations, estimates and
projections as at the date of this news release and are covered by
safe harbors under Canadian and United States securities laws.
Forward-looking information in this news release includes
information about potential further improvements to profitability
and efficiency across mining operations including, as a result of
the Company’s expansion efforts, potential impacts of Bill S6486D
on the Company’s operations, potential for the Company’s long-term
growth, and the business goals and objectives of the Company.
Factors that could cause actual results to differ materially from
those described in such forward-looking information include, but
are not limited to: completion of the community solar project may
not occur on the timing anticipated or at all; the acquisition of
community solar credits may not occur on the terms anticipated in
the community solar agreement or at all; risks related to the
impact of Bill S6486D on the Company’s operations, proposed
operations, and expansion plans; future capital needs and
uncertainty of additional financing, including the Company’s
ability to utilize the Company’s at-the-market offering program
(the “ATM Program”) and the prices at which the Company may sell
securities in the ATM Program, as well as capital market conditions
in general; share dilution resulting from the ATM Program and from
other equity issuances; risks relating to the strategy of
maintaining and increasing Bitcoin holdings and the impact of
depreciating Bitcoin prices on working capital; regulatory and
other unanticipated issues that prohibit us from declaring or
paying dividends to our shareholders that are payable in Bitcoin;
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;
approval of the Public Service Commission or other regulatory or
board approvals being received on a timely basis, or at all; the
acquisition of North Tonawanda, New York facilities closing on
timely basis, or at all; the renewal permits for the North
Tonawanda, New York facilities may not be granted on a timely
basis, or at all; ability to access additional power from the local
power grid; acquisition of new sites for operational expansion may
not occur on terms anticipated by the Company or at all; 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; the ability to maintain reliable and economical sources of
power to run its cryptocurrency mining assets; the negative impact
of regulatory changes in the energy regimes in the jurisdictions in
which the Company operates; the ability to adhere to Digihost’s
dividend policy and the timing and quantum of dividends based on,
among other things, the Company’s operating results, cash flow and
financial condition, Digihost’s current and anticipated capital
requirements, and general business conditions; 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 uncertainties therein.
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