Digihost Announces First Quarter – GuruFocus.com
TORONTO, May 17, 2022 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost“or the”Company”) (DGHI; TSXV: DGHI), an innovative Bitcoin based in the United States (“BTC”) mining company, announces unaudited financial results for the first quarter ended March 31, 2022 (all amounts are in U.S. dollars unless otherwise noted).
“The company is pleased to present its first quarter financial results, highlighted by a 77% increase in the number of Bitcoins mined year over year,” said Michel Amar, President and CEO of Digihost. “The company’s previous investments in infrastructure as well as securing access to clean and renewable energy sources generated mining revenues of $7.3 million, a 53% increase over the previous year. ‘last year. Despite challenging market conditions, Digihost is committed to achieving its goal of being a leading company in blockchain technology. With approximately $31 million in cash and cash equivalents currently available, valued at today’s BTC price, and mining with breakeven costs of approximately $12,000 per BTC, based on current hashing difficulties and energy cost, the company is more than capable of sustaining its existing operations, Digihost is clearly here to stay. Based on the number of BTC mined so far this quarter, the company predicts that it will mine more BTC in the second quarter than it mined in the first quarter of this year.
First Quarter 2022 Financial Highlights
- Digital currency mining revenue 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, 2021, a 53% increase;
- For the three-month period ended March 31, 2022, the Company mined a total of 186.53 BTC compared to 105.26 BTC for the three-month period ended March 31, 2021;
- Operating profit for the three-month period ended March 31, 2022 of $513,000, an increase of 125% compared to the same period of the previous year;
- Realized net profit of $59,000 for the three-month period ended March 31, 2022, compared to realized net profit of $73,000 for the same period of the previous year;
- EBITDA* of $2.0 million for the three-month period ended March 31, 2022, compared to $1.3 million during the same period last year, an increase of 53%;
- Total assets of $97.4 million, an increase of 22% from December 31, 2021;
- Cash and cash equivalents of $47.72 million as of March 31, 2022, an increase of 39% from December 31, 2021;
- Working capital of $35.47 million as of March 31, 2022, an increase of 34% compared to December 31, 2021;
- Property, plant and equipment consisting primarily of the Company’s BTC miners (64%) and mining infrastructure (36%) of $41.47 million;
- Raised C$13,300,000 of institutional equity financing through a private placement at a premium to market price; and
- Closing of a $10,000,000 secured revolving credit facility.
* EBITDA is a non-IFRS financial measure and should be read in conjunction with, and should not be considered an alternative or replacement for, operating results and liquidity measures presented in accordance with IFRS and refers readers reconciliations of non-IFRS measures. included in the Company’s management report.
|(USD except per share data)||Three months completed|
|Revenue from digital currency mining||7,312,342||4,767,075|
|Energy cost and production costs||(2,143,327||)||(1,549,144||)|
|Minor lease agreement||(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||)|
|Gain on sale of property, plant and equipment||2,340,658||–|
|Loss on debt settlement||–||(274,882||)|
|Other income||84 207||–|
|Change in fair value – Mining lease agreement||379,065||–|
|Operating result||512,644||228 269|
|Net financial charges||(84,375||)||(155,312||)|
|Net profit before tax||428 269||72,957|
|Deferred tax expense||(368,771||)||–|
|Net income for the period||59,498||72,957|
|Foreign currency translation adjustment||947 199||1,456|
|Revaluation of digital currency, net of tax||(620,761||)||5,836,561|
|Total comprehensive income for the period||385,936||5,910,974|
|Basic and diluted earnings per share
Weighted average number of subordinate voting shares outstanding – diluted
Market Funding Update
On March 4, 2022, the Company entered into an offering agreement with HC Wainwright & Co., LLC as agent, pursuant to which the Company established a market share program (the “ATM Program”) . From the start of the ATM Program up to the date hereof, the Company has not issued any securities under the ATM Program.
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 chops at a rate of approximately 450 PH/s.
For more information, please contact:
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.
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 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, due to the Company’s expansion efforts, equipment and infrastructure acquisitions, the Company’s long-term growth potential 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, but are not limited to: the ability to obtain regulatory approval and complete equipment and infrastructure acquisitions on the conditions announced or not at all; the ability to successfully integrate equipment and infrastructure acquisitions on an economic basis or not at all; future capital requirements 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, as well as capital market conditions in general; 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 continuing effects of the COVID19 pandemic could have a material adverse effect on the Company’s performance, as supply chains are disrupted and prevent the Company from operating its assets; Public Service Commission or other regulatory or board approvals received on a timely basis, or not 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 could 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 the Company’s 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, the Company’s results of operations, cash flow and financial condition, 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 event occurs 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. .