Digihost Announces First Quarter Results With a 77%


TORONTO, May 17, 2022 (GLOBE NEWSWIRE) – Digihost Technology Inc. (“Digihost“or”Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative US-based Bitcoin.BTC”), The mining company, announces the unaudited financial results for the first quarter ended March 31, 2022 (all amounts are in US dollars, unless otherwise indicated).

“The Company is pleased to present its first quarter financial results, highlighted by a 77% increase in Bitcoins extracted from year to year,” said Michel Amar, President and CEO of Digihost. “The Company’s previous investments in infrastructure along with the guarantee of access to clean and renewable energy sources resulted in a generation of mining revenue of $ 7.3 million, an increase of 53% over the previous year. Digihost is committed to being a leading blockchain technology company with approximately $ 31 million in cash and cash equivalents currently available, valued at the current BTC price, and a mining operation with an equilibrium cost of approximately $ 12,000 per BTC, based on the hashing difficulty and the current cost of energy, the Company is more than capable of supporting its existing operations, Digihost is clearly here to stay. Company expects to extract more BTC in the second quarter than it extracted during the first quarter of this year.

Financial data for the first quarter of 2022

  • Revenue from digital currency mining of $ 7.3 million reported for the three-month period ended March 31, 2022, compared to $ 4.8 million for the three-month period ended March 31, 2022 2021, an increase of 53%;
  • During the three-month period ended March 31, 2022, the Company extracted a total of 186.53 BTC compared to 105.26 BTC for the three-month period ended March 31, 2021;
  • Operating income for the three-month period ended March 31, 2022 was $ 513,000, an increase of 125% over the same period last year;
  • Net income of $ 59,000 for the three-month period ended March 31, 2022, compared to net income of $ 73,000 in the same period last year;
  • EBITDA * of $ 2.0 million for the three-month period ended March 31, 2022, compared to $ 1.3 million in the same period last year, an increase of 53%;
  • Total assets of $ 97.4 million, an increase of 22% compared to December 31, 2021;
  • Cash and cash equivalents of $ 47.72 million as of March 31, 2022, an increase of 39% compared to December 31, 2021;
  • Working capital of $ 35.47 million as of March 31, 2022, an increase of 34% compared to December 31, 2021;
  • Ownership, plant and equipment consisting primarily of the Company’s BTC miners (64%) and mining infrastructure (36%) of $ 41.47 million;
  • They raised $ 13.3 billion in institutional capital financing in a private placement at a higher than market price; e
  • It has closed a $ 10,000,000 revolving credit facility with collateral.

* EBITDA is a non-IFRS financial measure and should be read in conjunction with, and should not be construed as, as an alternative to or substitute for operating and liquidity measures presented in accordance with IFRSs and refer readers to non-compliant measures. IFRS. included in the Company’s MD&A.

(USD excluding data per share) Three months over
March 31st
2022
March 31st
2021
Revenue from digital currency mining 7,312,342 4,767,075
Energy cost and production costs (2,143,327 ) (1,549,144 )
Mining lease (3,056,125 )
Depreciation and amortization (1,531,598 ) (1,109,796 )
Gross profit 581,292 2,108,135
General and administrative expenses and others (1,337,992 ) (439,442 )
Profit from the sale of property, plant and equipment 2,340,658
Loss in debt settlement (274,882 )
Currency (770.196 )
Other Income 84,207
Change in fair value – Mining lease 379,065
Share-based compensation (764,390 ) (1,165,542 )
Operating income 512,644 228,269
Net financial expenses (84,375 ) (155,312 )
Net income before taxes 428,269 72,957
Deferred tax expense (368,771 )
Net income for the period 59,498 72,957
Foreign currency conversion adjustment 947,199 1,456
Revaluation of the digital currency, without taxes (620,761 ) 5,836,561
Total overall result for the period 385,936 5,910,974
Basic and diluted income per share
Weighted average number of subordinated shares with outstanding vote, diluted
0.00

27,685,913

0.00

14,771,251

Market financing update

On March 4, 2022, the Company entered into an offer agreement with HC Wainwright & Co., LLC as its agent, under which the Company established a market share program (the “ATM Program”). From the inception of the ATM Program to its date, the Company has not issued any securities under the ATM Program.

About Digihost

Digihost is a growth-oriented blockchain technology company focused primarily on BTC mining. Through its self-mining operations and joint venture agreements, the Company is currently hacking at a rate of approximately 450 PH / s.

For more information, please contact:

Digihost Technology Inc.
www.digihost.ca
Michel Amar, CEO
Phone: 1-818-280-9758
Email: michel@digihost.ca

Precautionary statement

The Company’s stock trading should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein. Neither the TSX Venture Exchange nor its regulatory service provider (as defined in the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this release.

Prospective statements

Except for historical fact statements, this press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates, and projections as of the date of this press release and are covered by safe harbors. under Canadian and U.S. securities laws. Prospective information in this press release includes information on possible further improvements in profitability and efficiency in mining operations. including, as a result of the Company’s expansion efforts, the acquisition of equipment and infrastructure, the potential for the Company’s long-term growth, and the Company’s business goals and objectives. Factors that could cause actual results to differ materially from those described in this forward-looking information include, but are not limited to, the ability to obtain regulatory approval and complete the procurement of equipment and infrastructure on the announced terms or under no circumstances; the ability to successfully integrate equipment and infrastructure acquisitions on an economic basis or at all; future capital requirements and additional financing uncertainty, including the Company’s ability to use the Company’s market offering program (the “ATM Program”) and the prices at which the Company may sell securities in the ATM Program, as well as capital . general market conditions; the dilution of shares resulting from the ATM Program and other capital issues; risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of the depreciation of Bitcoin prices on working capital; regulatory and other contingencies that prevent us from declaring or paying dividends to our shareholders that must be paid in Bitcoin; The continuing effects of the COVID-19 pandemic may have a material adverse effect on the Company’s performance as supply chains are disrupted and prevent the Company from operating its assets; the approval of the Public Service Commission or other regulatory or council approvals that are received on time, or not; the acquisition of the North Tonawanda facilities in New York, which close on time, or nothing; ability to access additional power from the local power grid; a decrease in cryptocurrency prices, the volume of transaction activity, or, in general, the profitability of cryptocurrency mining; further improvements in profitability and efficiency may not be made; the digital currency market; the company’s ability to successfully extract digital currency in the cloud; the Company may not be able to profitably liquidate its current digital currency inventory or anything; a decline in digital currency prices could have a significant negative impact on the Company’s operations; the volatility of digital currency prices; and other related risks as set forth in more detail in the Company’s Annual Information Form and in other documents disclosed in the Company’s archives at www.sedar.com. The forward-looking information in this press release reflects the Company’s current expectations, assumptions and / or beliefs based on the information currently available to the Company. In connection with the forward-looking information contained in this press release, the Company has made assumptions about: the current profitability in cryptocurrency mining (including the price and volume of current transaction activity); profitable use of the Company’s assets in the future; the Company’s ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the company’s ability to extract digital currencies in the cloud will be consistent with historical prices; the ability to maintain reliable and cost-effective energy sources to run their cryptocurrency mining assets; the negative impact of regulatory changes on energy regimes in the jurisdictions in which the Company operates; the ability to adhere to Digihost’s dividend policy and the timing and amount of dividends based on, among other things, the Company’s operating results, cash flow and financial condition, Digihost’s current and projected capital requirements and general terms and conditions of the business; and there will be no regulations or laws that prevent the Company from operating its business. The Company also assumed that no significant event occurs outside the normal course of business. Although the Company considers the assumptions inherent in the forward-looking information to be reasonable, the forward-looking information is not a guarantee of future performance and therefore such information should not be unduly trusted due to the uncertainties inherent in it.



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