Digihost Provides Update on Power Plant Acquisition
20 Enero 2023 - 5:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; Nasdaq: DGHI) is pleased
to provide an update on its previously disclosed acquisition (the
“
Acquisition”) of a 60 MW power plant in North
Tonawanda, NY (“
NT”). As previously announced, the
Company has received all state and federal regulatory approvals
required to complete the Acquisition, including approval of the
Acquisition from the Federal Energy Regulatory Commission and the
New York Public Service Commission (the “
PSC”).
The Company is finalizing closing documentation with the vendors
and management anticipates that the Acquisition will close within
the next 30 days.
Once the Acquisition is closed, 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, which the Company will be immediately
able to utilize for its digital asset infrastructure which has
already been engineered and set up on property immediately adjacent
to the power plant. The recent decline in natural gas prices which
commenced in Q3 2022 will contribute to lower input costs for the
Company’s blockchain data center network . The Company
believes that year round, the plant will continue to provide
electrical power to the grid on demand in order to meet customers
needs during extreme weather conditions and will also continue to
run the plant as a peaker plant. The acquisition of the NT power
plant is expected to bring the Company’s total computing power to
approximately 2.0 EH and would add to the Company’s diversified
portfolio of blockchain network infrastructure, including sites
located in New York, Alabama and North Carolina.
The Company also notes that it has been made
aware that a legal proceeding has been filed by the Sierra Club and
the Clean Air Coalition of Western New York against the PSC,
challenging the PSC’s decision to approve the sale of the NT power
plant. The Company is of the view that the proceeding is not
material to the closing of the Acquisition, as the Company believes
that the PSC acted within its legislative authority and took all
appropriate steps and measures in granting the approval. The
Company will provide further updates as more information becomes
available.
About Digihost Technology
Inc.
Digihost is a growth-oriented blockchain
technology company primarily focused on the production of BTC.
Through its digital asset infrastructure which also includes
hosting joint venture agreements, the Company is currently hashing
at a rate of approximately 715 PH/s.
For further information, please contact:
Digihost Technology Inc.
www.digihost.ca Michel 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 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; the results of any
legal proceedings against the PSC or the Company; 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.
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