Digihost Announces a 60% Increase in Bitcoin Production in 2022
03 Enero 2023 - 5:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to provide unaudited comparative BTC production
results for the month, quarter and year ended December 31, 2022,
combined with an operations update. All monetary references are
expressed in USD unless otherwise indicated.
The Company is pleased to report that it mined
approximately 832 BTC during the year ended December 31, 2022,
exceeding 2021 annual production of 521 BTC by approximately
60%.
Monthly Production Highlights for
December 2022
- Mined 56.96 BTC, resulting in total
holdings of 111.32 BTC at the end of December valued at
approximately $1.84 million based on a BTC price of $16,547 as of
December 31, 2022.
- Ethereum (“ETH”) holdings of 800.89
ETH at the end of December valued at approximately $0.96 million
based on an ETH price of $1,197 as of December 31, 2022.
- Total digital asset inventory
value, consisting of BTC and ETH, of approximately $2.8 million as
of December 31, 2022. In addition, the Company held cash of
approximately $1.82 million as of December 31, 2022. Cash and
liquid assets as of December 31, 2022 totalled approximately $4.62
million.
- Consistent with
management’s commitment to avoid equity dilution for its
shareholders, the Company sold a portion of its BTC production
during December to fully fund its energy costs.
- The only debt
Digihost carries as of December 31, 2022, in addition to normal
trade payables, is a vendor-take-back mortgage on its Alabama
facility in the amount of $934,500.
- Given the recent adverse weather
conditions in Western New York, the Company voluntarily reduced its
energy consumption during seven days of operations in December
running predominantly at off-peak hours as part of Digihost’s
ongoing commitment to assist the local power grid in continually
meeting the critical power requirements of its customer base.
Year-Over-Year Quarterly
Comparison
The Company mined an additional 18.24 BTC during
the fourth quarter of 2022 compared to the fourth quarter of 2021,
representing year-over-year quarterly increase of 11%.
Figure 2. Quarter-over-quarter BTC Production
|
Q4 2022 |
Q4 2021 |
YoY Increase |
Mined BTC |
190.63 |
172.38 |
18.24 |
Approximate BTC value |
$16,547 |
$46,306 |
($29,759) |
Production Value |
$3,154,355 |
$7,982,228 |
($4,827,874) |
Year-Over-Year Full Year
Comparison
On a year-over-year basis, the Company mined
approximately 311.64 more BTC during the year ended December 31,
2022, compared to the year ended December 2021, representing an
increase of approximately 60%.
Figure 1. Year-over-year FY BTC Production
|
FY 2022 |
FY 2021 |
YoY Increase |
Mined BTC |
832.27 |
520.63 |
311.64 |
Approximate BTC value |
$16,547 |
$46,306 |
($29,759) |
Production Value |
$13,771,572 |
$24,108,293 |
($10,336,721) |
North Tonawanda Power Plant
Acquisition
The Company is finalizing closing documentation
related to Digihost’s acquisition of a 60 MW power plant in North
Tonawanda, NY (“NT”). During December of 2022 the
Company received approval for the power plant acquisition from the
Federal Energy Regulatory Commission. All state and federal
regulatory approvals required to complete the acquisition
transaction have now been received by the Company. Management
expects the acquisition to close in Q1 of 2023. The power plant
will provide the Company with computing capacity of approximately
1.3 EH based upon an initial power generation run rate for the
plant of approximately 50 MW. Upon closing of the acquisition of
the power plant the Company will immediately be able to utilize all
50MW of power for its mining infrastructure which has already been
installed on property immediately adjacent to the power plant. When
combined with Digihost’s current New York State
(“NYS”) operations total computing capacity from
the Company’s NYS operations is projected to be approximately 1.7
EH.
Alabama Site
The Alabama Site Phase 1 build-out continued on
schedule and on budget, with initial mining capacity of 100 PH/s
coming online during the month of December. Phase 1, scheduled for
completion in Q1 of 2023, will provide the Company with 22 MW of
power resulting in total mining capacity of approximately 550
PH/s. The Alabama Site has total potential power
capacity of 55 MW. The Company is currently working on the design
of Phase 2 for the Alabama Site which could provide Digihost with
an additional 33 MW of power.
Digihost’s total operating capacity comprised of
the Company’s existing NYS operations, the mining capacity from the
NT power plant and Phase 1 of the Alabama Site build-out is
projected to be approximately 2.2 EH by the end of Q1 of 2023.
North Carolina Expansion
As announced earlier this year the Company
acquired 25 acres of land in North Carolina with a potential power
allocation of 200 MW. The Company expects to commence development
of the North Carolina site in Q1 of 2024.
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 715 PH/s.
All hosting fees and joint venture profit
sharing are treated as production costs 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 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: 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;
development of additional facilities to expand operations in
Alabama may not be completed on the timelines anticipated by the
Company, or at all; the acquisition of North Tonawanda, New York
facilities closing on timely basis, or at all; ability to access
additional power from the local power grid; 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.
Digihost Technology (NASDAQ:DGHI)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Digihost Technology (NASDAQ:DGHI)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024