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Be the first with the news that moves the market- Blockchain company Digihost Technology (TSXV:DGHI) has resumed 75 per cent of operations, with a reduced number of staff
- The company ceased operations on March 20, but has since reviewed the decision based on the business’s equipment-intensive processes
- Digihost has reached an agreement with its landlord to defer rent on the company’s facilities for April and May
- COVID-19 caused cryptocurrency values to plunge in March, but they are now starting to bounce back
- Digihost Technology (DGHI) is up 11.76 per cent, and is currently trading for 19 cents per share
Blockchain company Digihost Technology (TSXV:DGHI) has resumed its operations at 75 per cent capacity, and with reduced staff numbers.
The company originally announced on March 20 that it was ceasing operations until at least the end of the month. As March ended, Digihost re-evaluated its decision after reviewing its operational processes.
Since the company’s processes are equipment-intensive, the business is confident that it can partially restart with a reduced staff crew. This will allow Digihost to remain operational, whilst also maintaining a safe environment during the pandemic.
In addition, the company has reached an agreement with its landlord, deferring rent on its facilities for April and May. This arrangement was a part of Digihost’s cash conservation strategy.
It is likely that the recommencement of operations has something to do with Bitcoin values, which are on the rise. Last month, COVID-19 caused the values of various cryptocurrencies to plunge to new lows. On March 12, Bitcoin reached a low of C$6,787.
However, Bitcoin’s value has started to bounce back in a big way. As of April 6, Bitcoin was trading for around $10,179. This represents an increase of approximately 50 per cent in the last three weeks.
Digihost’s CEO, Michael Amar, commented on the company’s plans for surviving the COVID-19 crisis.
“We are expecting to avail ourselves of a government-backed loan, pursuant to the Small Business Administration’s $350 billion aid program. The program is a crucial part of the government’s record $2 trillion fiscal stimulus effort.
“This loan will assist us in transitioning Digihost back to normal operating capacity once the COVID-19 virus runs its course. We look forward to resuming normalised operations as soon as possible,” he said.
Digihost Technology (DGHI) is up 11.76 per cent, and trading for 19 cents per share as of 11:04am EST.
