- Digihost (DGHI) acquires 60 MW Power Plant Increasing Hashrate Capacity to 3 EH
- It is estimated that with the acquisition of Digifactory1, the all-in cost of electricity will be reduced to under US$0.03 per kw/h
- Additionally, the expanded capacity would allow for a potential increase to the existing hashrate of 190 PH to up to 3 EH
- Digihost will pay the vendor cash consideration of US$3,500,000 and issue to the vendor 437,318 common shares of the Company with a deemed value of US$750,000
- Digihost Technology Inc. (DGHI) is down 0.76 per cent and is trading at C$2.62 at 12:35 pm ET
Digihost Technology Inc. (DGHI) has signed an agreement to purchase a 60 MW power plant located in the State of New York.
This purchase brings Digihost’s total power capacity to approximately 102 MW.
Digihost’s ability to generate its own power will significantly reduce electricity costs, it’s largest operating expense for its cryptocurrency mining operations.
It is estimated that with the acquisition of Digifactory1, the all-in cost of electricity will be reduced to under US$0.03 per kw/h.
To the extent possible, Digihost intends to source and utilize renewable natural gas for the operations of Digifactory1 and also engage in the practice of acquiring renewable energy certificates, all in line with its objective to mitigate its carbon footprint.
Digifactory1 will have the capacity to operate an additional 18,000 top-tier Bitcoin miners, which would combine for a total Bitcoin mining if added to the existing fleet of 11,500 miners already in operation capacity of approximately 400 Bitcoins per month as of today’s mining difficulty factor.
Additionally, the expanded capacity would allow for a potential increase to the existing hashrate of 190 PH to 3 EH.
This substantial increase in both Bitcoin mining output capacity and hashrate would be the direct result of potentially adding up to 18,000 latest-generation Bitcoin miners versus the current operating mix of 11,500 older and newer version Bitcoin miners.
Under the terms of the agreement, Digihost will pay the vendor US$3,500,000 and issue 437,318 common shares to the vendor with a deemed value of US$750,000.
Alec Amar, Digihost’s President, stated,
“We are extremely excited to have achieved this milestone in the evolution of our Company. Vertical integration is a fundamental aspect of our business model, which will enable us to maximize Bitcoin mining efficiency and continuing to create sustainable value for our shareholders.”
“The addition of Digifactory1 will further reduce the electricity costs of our already efficient operations and will also provide additional capacity to operate a new fleet of top tier Bitcoin miners,” added Amar.
The transaction is expected to close within ninety days, subject to TSX Venture Exchange and all required regulatory approvals.
The securities issued to the vendor are subject to a statutory four-month and a day hold period. Further announcements will be made on the status of the transaction and closing.
Digihost Technology Inc. is a growth-oriented blockchain company primarily focused on Bitcoin mining.
Its mining facility is located in Buffalo, N.Y., and is equipped with an 18.7MVA 115,000-kilovolt-ampere outdoor substation with an option to increase the power output to 42MVA.
Digihost Technology Inc. (DGHI) is down 0.76 per cent and is trading at C$2.62 at 12:35 pm ET.