Digihost announces 60% increase in bitcoin production in 2022

This news release constitutes a “designated news release” for purposes of the March 4, 2022 prospectus supplement to the Company’s short form main shelf prospectus dated February 23, 2022.

TORONTO, Jan. 03, 2023 (GLOBE NEWSWIRE) — Digihost Technology Inc.Digihost” or “Company”) (Nasdaq: DGHI; TSXV: DGHI), the innovative US-based Bitcoin (“BTC”) mining company is pleased to present unaudited comparative BTC mining results for the month, quarter and year ending December 31, 2022, along with an operational update. All monetary references are in US dollars unless otherwise stated.

The company is pleased to report that it produced approximately 832 BTC for the year ending December 31, 2022, surpassing the 521 BTC annual production for 2021 by approximately 60%.

Monthly production figures for December 2022

  • Based on the BTC price of $16,547 as of December 31, 2022, a total volume of 111.32 BTC was mined at the end of December of 56.96 BTC, worth approximately $1.84 million.

  • Ethereum (“ETH”) holdings of 800.89 ETH at the end of December are worth approximately $0.96 million based on the December 31, 2022 ETH price of $1.197.

  • As of December 31, 2022, the total inventory value of digital assets consisting of BTC and ETH is approximately $2.8 million. In addition, the Company has approximately $1.82 million in cash as of December 31, 2022. Cash and liquid assets as of December 31, 2022 were approximately $4.62 million.

  • In line with management’s commitment to avoid capital dilution for its shareholders, the Company sold a portion of BTC production during December to fully fund energy costs.

  • Digihost’s only debt as of December 31, 2022, in addition to normal trade payables, is a vendor repossessed mortgage of $934,500 on its Alabama facility.

  • In light of the recent inclement weather in Western New York, as part of Digihost’s commitment to help the local power grid sustain critical power, it voluntarily reduced power consumption during seven days of operations in December, mostly during off-peak hours. requirements of the customer base.

Year-on-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 an 11% year-over-year increase.

Figure 2. Quarterly BTC mining

4th quarter of 2022

4th quarter of 2021

YY increase

Mined BTC




Estimated BTC value




Production cost




Year-to-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, an increase of approximately 60%.

Figure 1. Year-by-year BTC mining

FY 2022

2021 year

YY increase

Mined BTC




Estimated BTC value




Production cost




Acquisition of North Tonawanda Power Plant

The company is finalizing the closing documents for Digihost’s acquisition of a 60 MW power plant in North Tonawanda, New York.NT“). During December 2022, the Company received approval from the Federal Energy Regulatory Commission to acquire the power plant. All state and federal regulatory approvals required to complete the acquisition have already been received by the Company. Management expects the acquisition to close in the first quarter of 2023. The power plant will provide the Company with approximately 1.3 EH of computing power based on the initial power generation rate for a plant of approximately 50 MW. Once the acquisition of the power plant closes, the Company will be able to use all 50 MW of energy for mining infrastructure already installed on property immediately adjacent to the power plant. When combined with Digihost’s current state of New York (“NYS”) The total computational capacity of transactions from the Company’s NYS operations is projected to be approximately 1.7 EH.

Alabama site

Construction of the Alabama Field Phase 1 continued on schedule and on budget, with initial production capacity of 100 PH/s coming on stream during December. Phase 1, scheduled for completion in Q1 2023, will provide the Company with 22 MW of power, resulting in a total generation capacity of approximately 550 PH/s. The Alabama Field has a total potential 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, consisting of the Company’s existing NYS operations, generating capacity from the NT power plant and Phase 1 of the Alabama Site construction, is projected to be approximately 2.2 EH by the end of Q1 2023.

North Carolina Extension

As announced earlier this year, the Company acquired 25 acres of land in North Carolina with a potential energy share of 200 MW. The company expects to begin development of the North Carolina site in the first quarter of 2024.

About Digihost

Digihost is a growth oriented blockchain technology company mainly focused on BTC mining. Through its own mining operations and joint venture agreements, the Company is currently hashing at approximately 715 PH/s.

All hosting fees and joint venture profit sharing are accounted for as production costs in the Company’s consolidated financial statements.

For more information, contact:

Digihost Technology Inc.
Michel Amar, Chief Executive Officer
T: 1-818-280-9758
Email: michel@digihost.ca

Warning statement
Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory body has approved or disapproved of the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
Except for statements of historical fact, this news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) based on expectations, estimates and projections as of the date hereof. is a news release and is covered by safe harbors under the securities laws of Canada and the United States. Forward-looking information in this news release includes information about potential additional improvements in profitability and efficiency of mining operations. including, as a result of the Company’s expansion efforts, the Company’s long-term growth potential and the Company’s business goals and objectives. 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 the uncertainty of additional financing, including the Company’s ability to utilize the Company’s market offering program. (“ATM Program”) and the prices at which the Company can sell securities in the ATM Program, as well as capital market conditions in general; Diluting shares resulting from the ATM Program and other share issuances; Risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of Bitcoin price declines on working capital; regulatory and other unforeseen matters prohibiting the declaration or payment of dividends to our shareholders payable in Bitcoin; The ongoing effects of the COVID19 pandemic could have a material adverse effect on the Company’s operations as supply chains are disrupted and could prevent the Company from managing its assets; The development of additional facilities to expand operations in Alabama may not be completed as soon as the Company expects, or at all; the timely closing or general acquisition of the North Tonawanda, New York facilities; the possibility of obtaining additional energy from the local power grid; declines in cryptocurrency prices, volume of operations, or profitability of cryptocurrency mining in general; further improvements in profitability and efficiency cannot be realized; digital currency market; The company’s ability to successfully mine digital currency in the cloud; The Company may not be able to liquidate its current digital currency inventory at a profit or at all; a decline in digital currency prices may have a material adverse effect on the Company’s operations; volatility of digital currency prices; and other related risks are more fully disclosed in the Company’s Annual Information Form and other documents disclosed by the Company at www.sedar.com. Forward-looking statements in this news release reflect the Company’s current expectations, assumptions and/or beliefs 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 of cryptocurrency mining (including valuation and current operating volume); Profitable use of the Company’s assets in the future; Ability to liquidate the Company’s digital currency inventory at a profit when required; historical prices of digital currencies and the Company’s ability to mine digital currencies in the cloud will be consistent with historical prices; ability to maintain reliable and cost-effective power sources to manage cryptocurrency mining assets; Adverse impact of regulatory changes in energy regimes in jurisdictions where the Company operates; the ability to comply with Digihost’s dividend policy and the timing and amount of dividends based on, among other things, the Company’s operating results, cash flows and financial condition, Digihost’s current and expected capital requirements and general business conditions; and there will be no regulation or law that would prevent the Company from carrying out its business. The Company has also assumed that no material events outside the normal course of business of the Company have occurred. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, such information should not be unduly relied upon due to the uncertainties therein.

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