Digihost Technology (DGHI) Announces a 60% Increase in Bitcoin Production in 2022

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Digihost Technology Inc. (Nasdaq: DGHI), an innovative US-based bitcoin (BTC) mining company, is pleased to provide unaudited comparative BTC production results for the month, quarter and year ended December 31, 2022, combined with an operations update. All currency references are expressed in USD unless otherwise stated.

The Company is pleased to report that it mined approximately 832 BTC during the fiscal year ended December 31, 2022, exceeding the 2021 annual production of 521 BTC by approximately 60%.

Monthly Production Highlights for December 2022

Mining 56.96 BTC, resulting in a total of 111.32 BTC at the end of December valued at around $1.84 million based on a BTC price of $16,547 as of December 31, 2022. Ethereum (ETH) holdings of 800.89 ETH at the end of December valued at approximately $0.96 million based on an ETH price of $1,197 as of December 31, 2022. Total value of digital asset inventory, consisting of BTC and of ETH, approximately $2.8 million as of December 31, 2022. In addition, the company held cash of approximately $1.82 million as of December 31, 2022. Cash and liquid assets as of December 31, 2022 s amounted to approximately $4.62 million. In line with management’s commitment to avoid shareholder stock dilution, the company sold some of its BTC production in December to fully fund energy costs. The only debt Digihost carries as of December 31, 2022, in addition to normal commercial debt, is a seller repossession mortgage on its Alabama facility in the amount of $934,500. adverse weather conditions in western New York, the company voluntarily reduced power consumption for seven days of operation in December, operating mostly during off-peak hours as part of Digihost’s ongoing commitment to help the network local electricity company to constantly meet the critical energy needs of its customers.

Year-over-year quarterly comparison

The Company mined an additional 18.24 BTC during the fourth quarter of 2022 compared to the fourth quarter of 2021, representing a quarterly increase of 11% year-over-year.

Figure 2. BTC production quarter over quarter

Q4 2022Q4 2021YoY IncreaseBTC mined190.63172.3818.24Approximate BTC value$16,547$46,306($29,759)Production value$3,154,355$7,982,228($4,827,874)

Year-over-year comparison

On an annual basis, the Company mined approximately 311.64 BTC more during the fiscal year ended December 31, 2022, compared to the fiscal year ended December 2021, representing an increase of approximately 60%.

Figure 1. Annual BTC production for the fiscal year

FY 2022FY 2021YoY IncreaseBTC Mined832.27520.63311.64Approximate BTC Value$16,547$46,306$$29,759)Production Value$13,771,572$24,108,293$$10,336,721

Acquisition of the North Tonawanda Generating Station

The Company is finalizing closing documentation for Digihosts’ acquisition of a 60 MW power plant in North Tonawanda, NY (NT). In December 2022, the Company received approval for the acquisition of the power plant from the Federal Energy Regulatory Commission. All state and federal regulatory approvals required to complete the acquisition transaction have now been received by the Company. Management expects the acquisition to close in the first quarter of 2023. The power plant will provide the company with approximately 1.3 PE of compute capacity based on an initial power generation rate for the plant of about 50 MW. Upon closing of the power plant acquisition, the Company will immediately be able to use all of the 50 MW of electricity for its mining infrastructure that has already been installed on the property immediately adjacent to the power plant. When combined with Digihost’s current New York State (NYS) operations, the total compute capacity of the company’s NYS operations is expected to be approximately 1.7 PE.

Alabama map

Construction of Phase 1 of the Alabama site continued on time and on budget, with an initial mining capacity of 100 PH/s commissioned during the month of December. Phase 1, scheduled for completion in the first quarter of 2023, will provide the company with 22 MW of power, resulting in a total mining capacity of approximately 550 PH/s. The Alabama site has a total potential electrical capacity of 55 MW. The company is currently working on the Phase 2 design for the Alabama site which could provide Digihost with an additional 33 MW of power.

Digihosts’ total operating capacity, comprised of the company’s existing NYS operations, NT Power Plant mining capacity, and Phase 1 construction of the Alabama site, is expected to be approximately 2.2 PE. by the end of the first quarter of 2023.

Expansion in North Carolina

As announced earlier this year, the company acquired 25 acres of land in North Carolina with a potential energy allocation of 200 MW. The Company expects to begin development of the North Carolina site in the first quarter of 2024.

About Digihost

Digihost is a growth-oriented blockchain technology company primarily focused on BTC mining. Through its self-mining operations and joint venture agreements, the Company currently mines at a rate of approximately 715 PH/s.

All accommodation costs and joint venture profit sharing are treated as production costs in the company’s consolidated financial statements.

For more information, please contact:

Digihost Technology Inc.www.digihost.caMichel Amar, CEO T: 1-818-280-9758Email: [email protected]

Disclaimer Trading in the Company’s securities 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 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 facts, 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. hurry. and are covered by safe harbors under the securities laws of Canada and the United States. The forward-looking information contained in this press release includes information on possible further improvements in the profitability and efficiency of mining operations, including, as a result of the company’s expansion efforts, the potential for growth at the company’s long term and the company’s business objectives. . Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: future capital requirements and the uncertainty of additional financing, including the ability of the company to use the company’s market offering program (the ATM program) and the prices at which the Company may sell ATM program securities, as well as general capital market conditions; stock dilution resulting from the ATM program and other stock issuances; risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of Bitcoin price depreciation on working capital; regulatory and other unforeseen issues that prohibit us from declaring or paying our shareholders dividends payable in Bitcoin; the 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 development of additional facilities to expand operations in Alabama may not be completed within the timelines anticipated by the Company, if at all; the acquisition of the facilities in North Tonawanda, New York, closing on time or not at all; ability to access additional power from the local power grid; a decline in cryptocurrency prices, trading volume or, more 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 currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a material adverse impact on the Company’s operations; digital currency price volatility; and other related risks as more fully described in the Company’s Annual Information Form and other documents disclosed in the Company’s filings on 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 cryptocurrency mining (including prices and volume of current trading activity); the profitable use of company assets in the future; the Company’s ability to profitably liquidate its digital currency inventory as needed; historical prices of digital currencies and the Company’s ability to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical power sources to operate its cryptocurrency mining assets; the negative impact of regulatory changes to 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, results of operations, cash flow and financial condition of the company, capital requirements current and anticipated Digihost Terms and Conditions of Business; and there will be no regulations or laws that prevent the Company from carrying on business. The Company has also assumed that no material events occur outside of the normal course of business for the Company. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be placed on such information due to the inherent uncertainties therein. .

Source: Digihost Technology Inc.

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