Digihost (TSXV:DGHI) announces Y/Y 78% increase in monthly Bitcoin production

• The company mined 74.58 BTC in October of 2022, compared to 41.84 BTC in October of 2021, an increase of approximately 78 per cent
• Cash and liquid assets as of October 31, 2022, totalled approximately $7.16 million
• The company continues to remain debt free as of October 31, 2022
• Digihost is a blockchain technology company primarily focused on Bitcoin mining
• Digihost Technology Inc. (DGHI) opened trading at C$0.97 per share.

Digihost Technology (DGHI) has provided unaudited comparative BTC production results for the month ended October 31, 2022.

All monetary references are expressed in USD unless otherwise indicated.

The company mined 74.58 BTC in October of 2022, compared to 41.84 BTC in October of 2021, an increase of 32.74 BTC or approximately 78 per cent.

Production highlights for October 2022:

• Mined 74.58 BTC, resulting in total holdings of 118.16 BTC at the end of October, valued at approximately $2.45 million based on a BTC price of $20,705 as of October 31, 2022
• Ethereum holdings of 800.89 ETH at the end of October, valued at approximately $1.29 million based on an ETH price of $1,620 as of October 31, 2022

• Cash and liquid assets as of October 31, 2022, totalled approximately $7.16 million. This compares to cash and liquid assets of approximately $7.46 million as of September 30, 2022
• Consistent with management’s commitment to avoid equity dilution for its shareholders, the company sold a portion of its BTC production during October to fully fund its energy costs. Natural gas prices declined approximately 25 per cent during the month of October
• The company continues to remain debt free as of October 31, 2022
• The company’s mining operations continue to remain cash flow positive.

Michel Amar, Chairman and CEO of Digihost, commented on the results.

“Despite current volatile economic conditions, Digihost has been able to maintain good liquidity levels of cash and crypto holdings on a month-to-month basis relative to the size of our operations, and of equal importance, the Company continues to be debt free. We have maintained these liquidity levels while internally funding 100 per cent of our infrastructure development and securing bonds for electric service. Assuming the persistence of current market conditions, including current BTC prices, hashing difficulty and costs of energy, the Company expects to continue to generate positive cash flow from operations to fund its existing development initiatives. It will adhere to its policy of remaining debt free. I am also pleased to report to our shareholders that during the month of October, I continued to add to my position in Digihost by acquiring shares in the open market.”

Year-over-year monthly BTC production:

The company continues to move forward with closing documentation and approval requirements related to Digihost’s acquisition of a 60MW power plant in North Tonawanda, NY. Management anticipates that the transaction will close in Q4 of 2022.

With the power plant running at 50 MW, the company will be able to increase its current operating capacity of 650 PH by approximately 150 per cent, thereby increasing Digihost’s hash rate to approximately 1.6 EH.

The Alabama Phase 1 build-out is continuing on schedule and on budget. Phase 1, scheduled for completion in Q4 of 2022, will provide the Company with 22MW of power capacity resulting in additional mining capacity of approximately 550 PH. When coupled with the incremental mining capacity from the NT power plant, Digihost’s total computing power by the end of Q4 could reach up to approximately 2.2 EH.

Digihost is building the necessary infrastructure to provide the Alabama property with total power capacity of 55 MW, with the additional 33 MW projected to be operational by the end of the first quarter of 2023, resulting in total computing power available to the company of approximately 3.0 EH.

Digihost recently secured a $1.3 million surety bond with Alabama Power Company for electric service, demonstrating customer confidence in Digihost’s business and ability to meet future business needs and obligations.

Digihost is a blockchain technology company primarily focused on Bitcoin mining.

Digihost Technology Inc. (DGHI) opened trading at C$0.97 per share.