This news release constitutes a “designated news release” for the purpose of supplementing our prospectus dated March 4, 2022 to the short-form Baseshelf Prospectus dated February 23, 2022.
Toronto, June 14, 2022 (GLOBE NEWSWIRE)-Digihost Technology Inc. (“”Digihost” or “Company“) (Nasdaq: DGHI; TSXV: DGHI), an innovative US-based Bitcoin (“”BTCThe mining company announces that it has signed a contract (“agreement”) In collaboration with Grede II, LLC, we will acquire real estate in Alabama to expand our current operational capabilities. Unless otherwise stated, all monetary references are in US dollars.
The terms and conditions of the contract are as follows:
- The total purchase price is $ 2,750,000, of which $ 1,500,000 will be paid before June 17, 2022.
- The remaining $ 1,250,00 will be paid in 25 installments of $ 50,000 per month.
- Low cost power supply purchased from Alabama Power.
- The site consists of approximately 160,000 square feet of office and industrial warehouse space, initially accessible to 28 MW of electricity and a total capacity of 55 MW.
Michel Amar, Chairman and Chief Executive Officer of Digihost, said: “With this acquisition, all Digihost checkboxes have been selected because the company is in a position to double its current hash rate by accessing clean, renewable energy sources. . “
Loan repayment
On March 2, 2022, we announced the closure of a $ 10 million committed collateralized revolving credit line.Loan facility“). The Loan Facility has provided Digihost with an undiluted liquidity option to help finance its growth strategy.
We are pleased to inform you that as of today, the fully repaid loan facility has been repaid. The loan facility has been repaid over the past few weeks and we currently have no long-term debt.
Cash and digital inventory
- Approximately $ 7.9 million in cash on hand.
- Digital inventory consisting of BTC and Ethereum (“ETH”), About $ 8.7 million each, based on current BTC and ETH prices.
- The total cash on hand and digital inventory is approximately $ 16.6 million.
“We have conservatively managed our balance sheet and promised our shareholders to repay their outstanding debt by the end of 2022. Given the current market volatility, we announced an acceleration of this timeline. I’m happy to be able to do it, “commented Michelle Amar. Chairman and CEO of Digihost. “Current market conditions are tough, but our existing cash and digital holdings, coupled with low overhead, allow us to maintain a solid foundation while implementing our strategy of gaining access to low-cost energy. increase.”
Minor commitment
We do not have an unpaid purchase commitment for miners and in the current environment we will only consider the acquisition of miners on an opportunistic basis.
About Digihost
Digihost is a growth-oriented blockchain technology company focused primarily on BTC mining. Through a joint venture with the self-mining business, we are currently hashing at a rate of approximately 650 PH / s.
All hosting fees and joint venture profit sharing are treated as operating expenses in our consolidated financial statements.
For more information, please contact:
Digihost Technology Inc.
www.digihost.ca
Michelle Amar, Chief Executive Officer
T: 1-818-280-9758
Email: michel@digihost.ca
Notes
Trading our securities should be considered highly speculative. The stock exchange, securities committee, or other regulatory agency has not endorsed or dismissed the information contained herein. Neither the TSX Venture Exchange nor its regulatory service provider (the term is defined in the TSX Venture Exchange Policy) is responsible for the validity or accuracy of this release.
Description of future prospects
This news release contains “forward-looking information” and “forward-looking statements” based on expectations, estimates, and forecasts as of this date, except for statements of past facts (collectively, “future”. Information about the outlook “) is included. This is a news release and is subject to safe harbors under Canadian and US securities laws.Information on the future outlook for this news release includes information on the potential for further improvements in the profitability and efficiency of the entire mining business. As a result of our expansion efforts, we include our long-term growth potential and our business goals and objectives. Additional factors that may cause actual results to differ materially from those described in such forward-looking information include future capital demand and our ability to utilize our market offering programs. Financing uncertainties include, but are not limited to. (“ATM Program”) and the prices at which we may sell securities under the ATM Program, as well as general capital market conditions. Dilutive stock due to ATM programs and other stock issuance. Risks associated with strategies to maintain and increase Bitcoin holdings, and the impact of lower Bitcoin prices on working capital. Regulations and other unexpected issues prohibiting the declaration or payment of dividends to shareholders paid in Bitcoin. The continued impact of the COVID 19 pandemic can have a significant negative impact on a company’s performance as it disrupts the supply chain and prevents the company from managing its assets. Development of additional facilities to expand our business in Alabama may not be completed on our expected schedule or may not be completed at all. Not timely or at all approved by the Public Services Commission or by other regulatory agencies or the Board. The acquisition of the facility in North Tonawanda, NY will be closed in a timely or totally manner. The ability to access additional power from the local power grid. Cryptocurrency pricing, amount of transaction activity, or generally reduced profitability of cryptocurrency mining. Further improvements in profitability and efficiency may not be realized. Digital currency market. The ability of a company to successfully mine digital currencies on the cloud. We may not be able to liquidate our current digital currency inventory in our favor. Falling digital currency prices can have a significant negative impact on our business. Volatility of digital currency prices. And other related risks are described in detail in our annual information form and other documents disclosed in our filings (www.sedar.com). The information regarding the future outlook for this news release reflects our current expectations, assumptions, and / or beliefs based on the information currently available to us. In connection with the forward-looking information contained in this news release, we make the following assumptions: Current profitability in cryptocurrency mining, including pricing and current trading activity volume. Beneficial use of our assets in the future. The company’s ability to liquidate digital currency inventories in an advantageous manner as needed. Past prices of digital currencies and our ability to mine digital currencies in the cloud match past prices. The ability to maintain a reliable and economical power source for running cryptocurrency mining assets. Adverse effects of changes in energy system regulations in the jurisdiction in which we operate. In particular, our ability to comply with Digihost’s dividend policy and the timing and amount of dividends based on our operating results, cash flows and financial position, Digihost’s current and expected capital requirements, and general business conditions. In addition, there are no regulations or laws that impede our business operations. We also assume that no significant events will occur outside of our normal operations. We believe that the assumptions inherent in forward-looking information are reasonable, but forward-looking information does not guarantee future performance and therefore the uncertainties inherent in such information. You should not put excessive trust on your sexuality.
