Mr. Michel Amar reports
DIGIHOST ANNOUNCES 44% INCREASE IN MONTHLY BITCOIN PRODUCTION AND PROVIDES OPERATIONS UPDATE
Digihost Technology Inc. has released unaudited bitcoin (BTC) production results for the month ended April 30, 2022, combined with an operations update. All monetary references are expressed in United States dollars, unless otherwise indicated.
Production highlights for April, 2022:
Mined 109.03 BTC, resulting in total holdings of 797.28 BTC at the end of April, 2022, valued at approximately $30.1-million based on a BTC price of $37,715 as of April 30, 2022;
Ethereum (ETH) holdings of 1,000.89 ETH at the end of April, 2022, valued at approximately $2.7-million based on an ETH price of $2,730 as of April 30, 2022;
- Total digital asset inventory value, consisting of BTC and ETH, of approximately $32.8-million as of April 30, 2022;
- Consistent with the company's stated objective to avoid equity dilution for its shareholders, management sold a portion of BTC production during the month to finance energy costs.
The company mined an additional 33.44 BTC during April, 2022, compared with March, 2022, an increase of 44 per cent. Based on closing BTC prices on April 30, 2022, and March 30, 2022, the value of the company's BTC mined in April increased by approximately $700,000, or 20 per cent, month over month.
Year-over-year monthly comparison
The company increased mining production by 71.51 BTC in April, 2022, compared with April, 2021, representing an increase of 191 per cent. Based on closing BTC prices on April 30, 2022, compared with April 30, 2021, the value of the company's BTC mined in April, 2022, increased by approximately $1.9-million, or 89.8 per cent, compared with April, 2021.
During April, 2022, Digihost successfully completed electrical testing phases at the company's infrastructure buildout in North Tonawanda. The company demonstrated the ability to sustain aggregate operating levels at approximately one exohash per second while meeting all internal assessment qualifications. The testing was completed in an efficient manner by temporarily accessing power from the local electrical power grid.
As previously disclosed, the company awaits approval from the New York Public Service Commission to complete the acquisition of this 60-megawatt power plant in North Tonawanda. The company anticipates its hashing power will decrease in May, 2022, until the acquisition is finalized, and, in the interim, has submitted a request to the utility provider for a permanent allocation of power at the North Tonawanda location.
The company has recently acquired, in escrow, 25 acres of land in North Carolina in conjunction with continuing negotiations to access a 200-megawatt power infrastructure program that would be expected to be completed and ready for operation by the end of the third quarter of 2023.
A hallmark of Digihost's strategic growth plan has been its accessing of clean sources of energy while also being agreeable to on-demand programs with utilities that allow the company to provide urgent power needs for local communities during extreme weather conditions. The company is pleased to report that during April, 2022, while its BTC mining operation was running at over one exohash per second, over 90 per cent of the energy consumed by its operations was derived from sources that create zero carbon emissions.
At-the-market financing update
On March 4, 2022, the company entered into an offering agreement with H.C. Wainwright & Co. LLC as agent, pursuant to which the company established an at-the-market equity program. From the commencement of the ATM program through to the date hereof, the company has not issued any securities pursuant to the ATM program.
About Digihost Technology Inc.
Digihost is a growth-oriented blockchain technology company primarily focused on bitcoin mining. Through its self-mining operations and joint venture agreements, the company is currently hashing at a rate of approximately 450 petahashes per second.
All hosting fees and joint venture profit sharing are treated as operating expenses in the company's consolidated financial statements.
We seek Safe Harbor.
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