DGHI Announces 1st Quarter Results 77% Increase Coins Mined TORONTO, May 17, 2022 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based Bitcoin (“BTC”) mining company, announces unaudited financial results for the first quarter ended March 31, 2022 (all amounts in U.S. dollars, unless otherwise indicated).
“The Company is pleased to present its first quarter financial results, highlighted by a 77% increase in Bitcoins mined on a year over year basis,” said Michel Amar, Chairman and CEO of Digihost. “The Company’s previous investments in infrastructure along with securing access to clean and renewable energy sources led to revenue generation from mining of $7.3M, an increase of 53% over the preceding year. Despite challenging market conditions, Digihost is committed to its goal of being a leading blockchain technology company. With approximately $31 million of cash and cash equivalents currently on hand, valued at today’s BTC price, and a mining operation with breakeven costs of approximately $12,000 per BTC, based on current hashing difficulty and cost of power, the Company is more than capable of sustaining its existing operations, Digihost is clearly here to stay. Based upon the number of BTC mined so far this quarter, the Company anticipates that it will mine more BTC in Q2 than it mined during Q1 of this year.”
First Quarter 2022 Financial Highlights
- Revenue from digital currency mining 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, an increase of 53%;
- 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 income for the three-month period ended March 31, 2022 of $513 thousand, an increase of 125% over the same period for the prior year;
- Realized net income of $59 thousand for the three-month period ended March 31, 2022, compared to realized net income of $73 thousand over the same period for the prior year;
- EBITDA* of $2.0 million for the three-month period ended March 31, 2022, compared to $1.3 million over the same period for the prior year, an increase of 53%;
- Total assets of $97.4 million, an increase of 22% compared to December 31, 2021;
- Cash and cash equivalents of $47.72 million as at March 31, 2022, an increase of 39% compared to December 31, 2021;
- Working capital of $35.47 million as at 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 CAD$13,300,000 of institutional equity financing in a private placement at a premium to market price; and
- Closed a $10,000,000 committed, collateralized revolving credit facility.
* EBITDA is a non-IFRS financial measure and should be read in conjunction with, and should not be viewed as an alternative to or replacement of, measures of operating results and liquidity presented in accordance with IFRS and refer readers to reconciliations of non-IFRS measures included in the Company’s MD&A.
| (U.S.$ except per share data) | Three Months Ended |
| | March 31
2022 | March 31
2021 |
| Revenue from digital currency mining | 7,312,342 | | 4,767,075 | |
| Cost of power and production costs | (2,143,327 | ) | (1,549,144 | ) |
| Miner lease agreement | (3,056,125 | ) | - | |
| Depreciation and amortization | (1,531,598 | ) | (1,109,796 | ) |
| Gross profit | 581,292 | | 2,108,135 | |
| General and administrative and other expenses | (1,337,992 | ) | (439,442 | ) |
| Gain on sale of property, plant and equipment | 2,340,658 | | - | |
| Loss on settlement of debt | - | | (274,882 | ) |
| Foreign exchange | (770,196 | ) | - | |
| Other Income | 84,207 | | - | |
| Change in fair value - Miner Lease Agreement | 379,065 | | - | |
| Share based compensation | (764,390 | ) | (1,165,542 | ) |
| | | |
| Operating income | 512,644 | | 228,269 | |
| Net financial expenses | (84,375 | ) | (155,312 | ) |
| Net income before taxes | 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 income per share
Weighted average number of subordinate voting shares outstanding – diluted | 0.00
27,685,913 | | 0.00
14,771,251 | |
At-the-Market Financing Update
On March 4, 2022, the Company entered into an offering agreement with H.C. Wainwright & Co., LLC as agent, pursuant to which the Company established an at-the-market equity program (the “ATM Program”). From the commencement of the ATM Program through to the date hereof, the Company has not issued any securities pursuant to the ATM Program.
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 450 PH/s.
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