Bit Digital Announces Strategic Collaboration with Digihost to Increase Combined Hashrates by 400 PH/S

Rhea-AI Summary

Bit Digital announced a strategic co-mining agreement with Digihost Technologies on June 10, 2021. This agreement allows Bit Digital to utilize Digihost's premises and services for a 20 MW Bitcoin mining system. The collaboration is expected to increase the combined hashrate by approximately 400 PH. Digihost will provide power and management services to ensure 95% uptime for the mining equipment. The miners are anticipated to be delivered and installed in Q4 2021, contributing to Bit Digital's ongoing expansion in North America.

Positive

• Strategic co-mining agreement with Digihost expected to increase hashrate by 400 PH.
• Digihost will provide management services ensuring 95% uptime for mining operations.
• Miners scheduled for delivery and installation in Q4 2021, supporting growth in North America.

Negative

• None.

NEW YORK, June 10, 2021 /PRNewswire/ -- Bit Digital, Inc. ("Bit Digital" or the "Company") (NASDAQ: BTBT) is pleased to announce that the Company has entered into a strategic co-mining agreement (the "Agreement") with Digihost Technologies ("Digihost") (TSXV: DGHI; OTCQB: HSSHF) in North America. Pursuant to the terms of the Agreement, Digithost will provide certain premises (the "Premises") to Bit Digital for the purpose of the operation and storage of a 20 MW Bitcoin mining system (the "Miners") to be delivered by Bit Digital, and Digithost will also provide services to maintain the Premises for a term of two years. The collaboration between Digihost and Bit Digital is expected to generate an increase in hashrate of approximately 400 PH between the companies.

Under the terms of the Agreement, Digihost will provide power for the operation of the Miners and will also provide management services necessary to maintain 95% uptime on the Miners. In consideration for these services, after paying Digihost a very competive rate for power, Digihost and Bit Digital will participate in a profit sharing arrangement based on a fixed distribution formula. It is expected that the Miners will be delivered and installed during the fourth quarter of this year.

Michel Amar, Digithost's CEO, stated: "We are extremely pleased by this strategic collaboration with Bit Digital which, based on current Bitcoin metrics, is expected to deliver significant results through the increase in hashrate of 400 PH between the two companies. Our business strategy continues to be growth through the expansion of our mining infrastructure, vertical integration of low-cost and green sources of energy, strategic partnerships with leading companies in the blockchain sector, and geographic diversification in North America to strategically operate our business in regions where minimal or no carbon footprint is generated."

Bryan Bullett, Bit Digital's CEO, stated: "We are extremely pleased by this strategic collaboration with Digihost which marks our ongoing expansion in North America, as we continue to transition our mining fleet here. Our business strategy continues to encompass growth through the expansion of strategic partnerships with institutional-quality hosting providers with aligned economic interests, to secure efficient access to power and hosting. We look forward to a successful partnership with Digihost."

About Bit Digital

Bit Digital, Inc. is a Bitcoin mining company headquartered in New York with one of the highest operating hash rates (or computing power) among all US listed Bitcoin miners and expanding. The current operations are in the United States, Canada and China. For additional information, please contact Sam Tabar at sam@bit-digital.com or visit www.bit-digital.com.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 3.D of our most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2020. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or Bitcoin hash rate may also materially affect the future performance of Bit Digital's production of bitcoin. Additionally, all discussions of financial metrics assume mining difficulty rates as of May 2021. See "Safe Harbor Statement" below.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the company does not assume a duty to update these forward-looking statements.

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SOURCE Bit Digital, Inc.

FAQ

What is the strategic agreement between Bit Digital and Digihost?

Bit Digital entered a co-mining agreement with Digihost to utilize their premises for a 20 MW Bitcoin mining system, enhancing the combined hashrate by 400 PH.

How will the agreement with Digihost impact Bit Digital's operations?

The agreement allows Bit Digital to improve operational efficiency and increase its Bitcoin mining capabilities with 95% uptime.

When are the miners expected to be delivered under the Bit Digital and Digihost agreement?

The miners are anticipated to be delivered and installed during the fourth quarter of 2021.

What benefits does the agreement with Digihost provide Bit Digital?

The collaboration provides access to essential infrastructure and services, increasing efficiency and potential profitability in Bitcoin mining.