Digihost Announces Acquisition of 55 MW Site in Alabama and Full Repayment of $10,000,000 Loan Facility
Digihost Announces Acquisition of 55 MW Site in Alabama and Full Repayment of $10,000,000 Loan Facility
TORONTO, June 14, 2022 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based Bitcoin (“BTC”) mining company, is pleased to announce that it has entered into an agreement (“Agreement”) with Grede II, LLC to acquire property in the state of Alabama in order to expand its current operational capacity. All monetary references are expressed in USD unless otherwise indicated.
Terms of the Agreement are as follows:
Total purchase price of $2,750,000, $1,500,000 of which is due on or before June 17, 2022.
The remaining $1,250,00 is to be paid in 25 equal monthly installments of $50,000 per month.
Low-cost electricity supply to be purchased from Alabama Power.
Site consists of approximately 160,000 square feet of office and industrial warehouse space with initial access to 28 MW of power with total capacity of 55 MW.
“The Company has been pursuing opportunities to significantly increase the capacity of our mining operations and diversify jurisdictional risk in an environmentally conscious manner,” said Michel Amar, Chairman and CEO of Digihost. “This acquisition checked all the boxes for Digihost as the Company is now in a position to double its current hash rate by access to clean and renewable energy sources.”
Loan Repayment
On March 2, 2022, the Company announced the closing of a $10 million committed, collateralized revolving credit facility (the “Loan Facility”). The Loan Facility provided Digihost with non-dilutive liquidity options to assist in the financing of its growth strategy.
The Company is pleased to report that as of today’s date, the fully drawn Loan Facility has been repaid. The repayment of the Loan Facility was carried out over the last several weeks and the Company currently has no long-term debt.
Cash and Digital Inventory
Cash on hand of approximately $7.9 million.
Digital inventory, consisting of BTC and Ethereum (“ETH”), of approximately $8.7 million, based on current BTC and ETH prices, respectively.
Total cash on hand and digital inventory of approximately $16.6 million.
“The Company made a commitment to its shareholders to conservatively manage its balance sheet and to pay off its outstanding debt by the end of 2022. We are pleased to announce the acceleration of this timeline in light of current market volatility”, commented Michel Amar, Chairman and CEO of Digihost. “Current market conditions are challenging but given the Company’s existing cash and digital holdings, combined with low overhead, we are able to remain on solid footing while still executing on our strategy of gaining access to low-cost energy”.
Miner Commitments
The Company does not have any outstanding purchase commitments for miners and in the current environment will only consider miner acquisitions on an opportunistic basis.
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 is currently hashing at a rate of approximately 650 PH/s.
All hosting fees and joint venture profit sharing are treated as operating expenses in the Company’s consolidated financial statements.
For further information, please contact:
Digihost Technology Inc.
www.digihost.ca
Michel Amar, Chief Executive Officer
T: 1-818-280-9758
Email: michel@digihost.ca
For more information: