Digihost Announces Y/Y YTD 45% Increase In Bitcoin Production And Provides Operations Update

Author: Benzinga Newsdesk | December 02, 2022 07:06am

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 ended November 30, 2022, combined with an operations update. All monetary references are expressed in USD unless otherwise indicated.

Production Highlights for November 2022

• Mined 61.32 BTC, resulting in total holdings of 98.38 BTC at the end of November valued at approximately $1.69 million based on a BTC price of $17,169 as of November 30, 2022.
  
  
   
• Ethereum ("ETH") holdings of 800.89 ETH at the end of November valued at approximately $1.04 million based on an ETH price of $1,296 as of November 30, 2022.
  
  
   
• Total digital asset inventory value, consisting of BTC and ETH, of approximately $2.73 million as of November 30, 2022.  In addition, the Company held cash of approximately $2.62 million at the end of November. Cash and liquid assets as of November 30, 2022 totalled approximately $5.35 million.
  
  
   
• Consistent with management's commitment to avoid equity dilution for its shareholders, the Company sold a portion of its BTC production during November to fully fund its energy costs.
  
  
   
• The Company's mining operations continue to remain cash flow positive.
  
  
   
• Digihost also remains debt free with the exception of approximately $1 million of mortgage debt secured by its Alabama facility.
   

Year-Over-Year YTD Comparison

On a year-to-date basis, the Company mined approximately 239.33 more BTC as of November 30, 2022, compared to November 2021, representing an increase of approximately 45%.

Figure 1. Year-over-year YTD BTC Production

YTD 2022		YTD 2021		YTD Increase
Mined BTC	775.30	535.98	239.33
Approximate BTC value	$17,169		$57,005		($39,837		)
Production Value	$13,311,126		$30,553,540		($17,242,414		)

Custodial services for digital currencies
 

As a result of the potential contagion from the recent collapse of FTX, the Company made the decision to move a majority of its digital currencies to an offline cold storage wallet in order to better safeguard its assets. This change in custodial practices is consistent with the Company's risk management strategy in the current market environment.

North Tonawanda Power Plant Acquisition Update

The Company continues to move forward with closing documentation and approval requirements related to Digihost's acquisition of a 60 MW power plant in North Tonawanda, NY ("NT"). Management anticipates this transaction will close in Q1 of 2023 providing the Company with additional computing capacity of approximately 1.04 EH based upon a power generation run rate of approximately 50 MW from the plant.

When combined with Digihost's current operations total computing capacity from the Company's New York State ("NY") operations is projected to be approximately 1.7 EH.

Posted In: DGHI TSXV:DGHI