Digihost's Cash and Crypto Assets Rise 18% as They Prepares for New S21 Miners Deployment

Digihost Technology (NASDAQ:DGHI) reported a 18% increase in cash and crypto assets, reaching $7.1 million as of June 30, 2024. Monthly Bitcoin production was 45 BTC. The company signed an agreement to install 11,000 next-generation S21 miners, resulting in a potential 44MW shared revenue and a projected hash rate increase to 3.2 EH/s by Q3 2024. Digihost is also monetizing BTC to cover energy costs, with a consolidated operating capacity of 90MW across its sites and a current mining hash rate of 2 EH/s.

Digihost Technology Inc. (NASDAQ: DGHI), a leading U.S.-based blockchain technology and computer infrastructure company, reported a significant increase in cash and crypto assets during the second quarter of 2024, reaching an impressive $7.1 million (1). This remarkable growth comes amidst the company's strategic efforts to expand its computing power and diversify its revenue streams.

The Company's Chairman and CEO, Michel Amar, expressed his satisfaction with Digihost's accomplishments. Despite the challenges faced by the mining industry post-halving, Digihost's recent initiatives, such as hosting agreements and revenue diversification, enable the company to capitalize on additional opportunities (1).

In addition to the financial growth, Digihost reported a monthly Bitcoin production of 45 BTC in April 2024 (1). This figure represents a slight decrease in daily BTC mined compared to the previous month due to the Bitcoin halving event, which reduced mining rewards. However, the Company's ending BTC position experienced a noteworthy increase of approximately $0.8 million over the previous month's balance (1).

To accommodate the expansion of its mining operations, Digihost invested approximately $0.2 million on capital expenditures and mining infrastructure support equipment during the quarter (1). This spending reflects the company's commitment to minimizing equity dilution for its shareholders and maintaining a self-funded approach.

In terms of energy costs, Digihost has been proactive in monetizing a portion of its BTC production to fully cover these expenses. The company's consolidated operating capacity currently stands at 90MW across its sites, with a mining hash rate of 2 EH/s (1).

Looking ahead, Digihost is poised for further growth with its plans to install 11,000 next-generation S21 miners. This agreement could potentially result in a shared revenue of 44MW and a projected hash rate increase to 3.2 EH/s by the third quarter of 2024 (1).

Sources:
[1] Digihost Technology Inc. "Digihost Announces Month-Over-Month Increase in Cash and Crypto Position and Provides Operations Update." GlobeNewswire, 1 May 2024, [https://www.nasdaq.com/press-release/digihost-announces-month-over-month-increase-in-cash-and-crypto-position-and-provides].