Mr. Michel Amar reports
DIGIHOST ANNOUNCES Y/Y 150% INCREASE IN QUARTER TO DATE BITCOIN PRODUCTION AND PROVIDES OPERATIONS UPDATE
Digihost Technology Inc. has provided unaudited bitcoin (BTC) production results for the month ended May 31, 2022, combined with an operations update. All monetary references are expressed in U.S. dollars unless otherwise indicated.
Production highlights for May, 2022:
Mined 70.47 BTC, resulting in total holdings of 637.66 BTC at the end of May valued at approximately $20.37-million based on a BTC price of $31,950 as of May 31, 2022;
Ethereum (ETH) holdings of 1,000.89 ETH at the end of May valued at approximately $2-million based on an ETH price of $2,000 as of May 31, 2022;
Total digital asset inventory value, consisting of BTC and ETH, of approximately $22.37-million as of May 31, 2022;
- In order to avoid equity dilution for its shareholders, management sold a portion of its BTC production during the month to finance its energy costs;
- Liquid assets attributable to investments in cryptocurrency operation valued at approximately $2.8-million in addition to cash on hand of approximately $5-million.
Year-over-year quarterly comparison:
The company mined an additional 107.72 BTC during the first two months of the second quarter of 2022 compared with the same time frame of 2021, an increase of 150 per cent. Based on BTC prices on May 31, 2022, and May 31, 2021, the value of the company's BTC mined in the first two months of the second quarter of 2022 increased by approximately $3.1-million, or 114 per cent, year-over-year.
Year-over-year monthly comparison
The company increased mining production by 36.21 BTC in May, 2022, compared with May, 2021, representing an increase of 106 per cent. Based upon BTC prices on May 31, 2022, compared with May 31, 2021, the value of the company's BTC mined in May, 2022, increased by approximately $1-million, or 76 per cent, compared with May, 2021.
The company mined an additional 67.90 BTC during the first two months of the second quarter of 2022 compared with the first two months of the first quarter of 2022, representing an increase of 61 per cent.
Partial loan payoff
On March 2, 2022, the company announced the closing of a $10-million committed, collateralized revolving credit facility with Securitize Inc. The loan facility provided Digihost with non-dilutive liquidity options to assist in the financing of its growth strategy.
The company is pleased to announce that as of the date hereof, it has paid back approximately $4-million of the fully drawn facility and intends to pay the residual amount owed under the loan facility throughout the remainder of 2022.
Normal course issuer bid program
During May, 2022, Digihost announced that it had received approval to undertake, at the company's discretion, a normal course issuer bid program (NCIB) to purchase up to 1,219,762 of its subordinate voting shares for cancellation. The NCIB was commenced due to the fact that, from time to time, the company may consider that the market price of its subordinate voting shares do not accurately reflect the underlying value of the company's business.
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 and will not issue any securities pursuant to the ATM program while the company purchases shares pursuant to the NCIB.
Digihost is a growth-oriented blockchain technology company primarily focused on BTC mining. Through its self-mining operations and joint venture agreements, the company is currently hashing at a rate of approximately 450 petahashes per second.
We seek Safe Harbor.
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