Digihost Announces Y/Y YTD Increase in Bitcoin Production by 150% and Provides Operational Updates

This press release constitutes a “designated press release” for the purposes of the Company’s March 4, 2022 prospectus supplement to its February 23, 2022 short form base prospectus.

TORONTO, June 1, 2022 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost” or the “company“) (Nasdaq: DGHI; TSXV: DGHI), an innovative US-based Bitcoin (“Bitcoin‘), is pleased to report unaudited BTC production results for the month ended May 31, 2022 in conjunction with an operational update. All currencies are in USD unless otherwise noted.

Production highlights for May 2022

• Mined 70.47 BTC, resulting in a total inventory of 637.66 BTC at the end of May, worth approximately $20.37 million based on a BTC price of $31,950 as of May 31, 2022.

• ether (“ETH”) Holdings of 1,000.89 ETH at the end of May worth about $2 million, based on an ETH price of $2,000 as of May 31, 2022.

• Total inventory value of digital assets, comprised of BTC and ETH, of approximately $22.37 million as of May 31, 2022.

• To avoid equity dilution for its shareholders, management sold some of its BTC production during the month to fund its energy costs.

• Cash and cash equivalents attributable to investments in cryptocurrency operations are valued at approximately $2.8 million, in addition to approximately $5 million in cash on hand.

Quarterly comparison year-on-year

The company mined an additional 107.72 BTC in the first two months of the second quarter of 2022 compared to the same period of 2021, an increase of 150%. Based on BTC prices on May 31, 2022 and May 31, 2021, the value of the Company’s BTC mined during the first two months of Q2 2022 increased by approximately $3.1 million, or 114%, year-on-year.

Figure 1. BTC production quarter to date

	QTD Q2 2022		QTD Q2 2021		QoQ increase
Mined BTC		179.50		71.78		107.72
Approximate BTC value	$	31,950	$	37,333	($	5,383	)
value	$	5,735,025	$	2,679,763	$	3,055,262

Monthly year-on-year comparison

The story goes on

The company increased mining production by 36.21 BTC in May 2022 compared to May 2021, an increase of 106%. Based on BTC prices on May 31, 2022 compared to May 31, 2021, the value of the Company’s May 2022 mined BTC increased by approximately $1 million, or 76%, compared to May 2021.

Figure 2. Monthly BTC Production YoY

	May-22		May-21		MoM increase
Mined BTC		70.47		34.26		36.21
Approximate BTC value	$	31,950	$	37,333	($	5,383	)
value	$	2,251,517	$	1,279,029	$	972,488

quarterly comparison

The company mined an additional 67.90 BTC in the first two months of Q2 2022 compared to the first two months of Q1 2022, a 61% increase.

Figure 3. BTC production quarter to date

	QTD Q2 2022		QTD Q1 2022		QoQ increase
Mined BTC		179.50		111.60		67.90
Approximate BTC value	$	31,950	$	43,193	($	11,243	)
value	$	5,735,025	$	4,820,339	$	914,686

partial repayment of the loan

On March 2, 2022, the Company announced it had completed a $10 million committed, secured revolving credit facility with Securitize, Inc. (the “credit facility“). The credit facility provided Digihost with basic liquidity options to help fund its growth strategy.

The Company is pleased to announce that to date it has repaid approximately $4 million of the fully drawn facility and intends to pay the balance due under the loan facility by the end of 2022.

Normal course exhibitor bidding program

In May 2022, Digihost announced that it had received approval to conduct an offering program for regular course issuers at the company’s discretion (“NCIB‘) to purchase up to 1,219,762 of its Subordinate Voting Shares for cancellation. The NCIB was created because the Company may from time to time believe that the market price of its Subordinate Voting Shares does not accurately reflect the underlying value of the Company’s business.

ATM program

On March 4, 2022, the Company entered into an offering agreement with agent HC Wainwright & Co., LLC, pursuant to which the Company launched a share program in the market (the “ATM program“). From the inception of the ATM Program to this date, the Company has not issued securities under the ATM Program and will not issue securities under the ATM Program while the Company is purchasing shares under the NCIB.

About Digihost

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

All hosting fees and joint venture profit sharing are treated as operating expenses in the Company’s consolidated financial statements.

For more information please contact:

Digihost Technology Inc.
www.digihost.ca
Michel Amar, Chairman of the Board
T: 1-818-280-9758
Email: [email protected]

warning notice
Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
Except for statements of historical fact, 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 protected by the securities laws of Canada and the United States protected. Forward-looking information in this news release includes information regarding potential further improvements in profitability and efficiency at all mining operations, including the potential for long-term growth for the Company as a result of the Company’s expansion efforts and the Company’s business goals and objectives. Factors that could cause actual results to differ materially from those described in such forward-looking information include, among others: future capital needs and the uncertainty of additional financing, including the Company’s ability to utilize the Company’s market offering program (the ” ATM Program”) and the prices at which the Company may sell securities in the ATM Program and capital market conditions generally; stock dilution resulting from the ATM program and other stock offerings; risks associated with the strategy of holding and increasing bitcoin holdings and the impact of falling bitcoin prices on working capital; regulatory and other unforeseen issues that prohibit us from declaring or paying dividends to our shareholders payable in Bitcoin; continued effects of the COVID19 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 board approvals obtained in a timely manner or at all; the acquisition of facilities in North Tonawanda, New York that are closing timely or at all; Possibility to access additional energy from the local electricity grid; a decrease in cryptocurrency prices, transaction volume, or generally the profitability of cryptocurrency mining; further improvements in profitability and efficiency may not be realized; the digital currency market; the Company’s ability to successfully mine digital currencies in the cloud; the company may not be able, or be unable at all, to profitably liquidate its current holding of digital currencies; a decline in digital currency prices may have a material adverse impact on the Company’s operations; the volatility of digital currency prices; and other risks associated therewith, as more fully set forth in the Company’s annual information form and other documents published in the Company’s filings at www.sedar.com. The forward-looking information contained in this press release reflects the Company’s current expectations, assumptions and/or beliefs based on 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 of mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company’s assets in the future; the Company’s ability to profitably liquidate its holdings of digital currencies as needed; historical prices of digital currencies and the Company’s ability to mine digital currencies in the cloud will be consistent with historical prices; the ability to maintain reliable and economical sources of energy to operate its cryptocurrency mining assets; the adverse impact of regulatory changes in energy rules in the jurisdictions in which the Company operates; the ability to comply with Digihost’s dividend policy and the timing and amount of dividends based, among other things, on the Company’s results of operations, cash flow and financial condition, Digihost’s current and projected capital requirements and general business conditions; and there will be no regulations or laws preventing the Company from conducting its business. The Company has also assumed that no significant events will occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly, due to the uncertainties therein, such information should not be relied on.

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