Digihost Announces Completion of Power Plant Acquisition
08 Febrero 2023 - 5:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSX-V: DGHI) is pleased
to announce that the Company has completed the acquisition of a 60
MW power plant in North Tonawanda, NY (the
“
Acquisition”). Further to the Company’s initial
news release on March 24, 2021, the terms of the Acquisition were
amended to reflect an all-cash purchase price. No shares of the
Company were issued in connection with the Acquisition.
Michel Amar, the Company’s CEO, stated: “We are
extremely pleased to announce to our shareholders the completion of
the power plant acquisition. This successful transaction represents
a significant milestone in the Company’s ongoing infrastructure
expansion strategy. As a result of the Acquisition, our current
operating capacity is close to 100MW representing approximately 2
EH of computing power. The generator capacity will continue
flexible operation to ensure that 24/7 dispatchable supply is made
available to area residents, businesses and industry to mitigate
impacts of power interruptions in concert with directives of the
New York Independent System Operator (NYISO). We are also pleased
to have been able to execute this deal with all cash, avoiding
equity dilution and providing additional value for our
shareholders. The Company continues to diversify on a
jurisdictional basis, having expanded in both New York and Alabama,
as well as securing a large site in North Carolina.”
Alec Amar, the Company’s President, added: “We
are very excited with the long-awaited completion of the
Acquisition and look forward to seamlessly carrying on the
operation of the power plant. Successful operation of the plant
will help support the utility power grid for reliability and our
plant will be readily available for residential and commercial
consumers during peak periods of demand. The Acquisition will also
help support the local community by bringing more skilled jobs to
the area and the operation of the plant will bring much needed tax
revenue to North Tonawanda.”
Digihost will continue to support New York’s
climate initiatives through its agreement to purchase community
solar credits from a nearby community solar farm. This renewable
energy project, located in National Grid territory, is being
managed by Williamsville, NY 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 Buffalo, NY facility remains the
anchor subscriber to the project. The Company’s facility is located
in New York’s Zone-A region, where more than 90% of the power comes
from zero emissions generation. This long-term agreement further
reduces Digihost’s already low carbon footprint for its blockchain
operations in New York State.
Luke Marchiori, the Company’s Chief Renewable
Energy Officer, stated: “The Acquisition is significant as it gives
us an opportunity to materially expand our operating capacity,
while at the same time introducing a new renewable fuel source into
our operations. To fuel the plant, Digihost will be procuring
locally sourced renewable natural gas produced from dairy farms in
Western New York. This facility is unique as the Company can
quickly flip from using the power generation on site to support our
blockchain infrastructure to supplying electricity to local
residents and businesses in times of need.”
About Digihost Technology
Inc.
Digihost is a growth-oriented technology company
focused on the blockchain industry. The Company operates from three
sites in the U.S. and in addition to managing its own operations
provides joint venture partners with hosting arrangements at its
facilities.
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 results of any legal
proceedings against the New York Public Service Commission 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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