Digihost Provides Update on Proposed Private Placement

Rhea-AI Summary

Digihost Technology Inc. (HSSHF) announced it is not proceeding with a previously proposed non-brokered private placement due to recent trading volatility. The decision, made on March 8, 2021, may lead to a revised placement in the future. CEO Michel Amar highlighted the company's focus on improving its Bitcoin mining operations, reporting a hashrate increase to approximately 189 Petahash. Digihost currently mines about 1.2 Bitcoins per day and aims to enhance its operational efficiency amidst potential market challenges.

Positive

• Increased hashrate to approximately 189 Petahash.
• Currently mining approximately 1.2 Bitcoins per day.
• Company remains focused on efficiency and expansion of mining operations.

Negative

• Cancellation of the private placement could limit available capital.
• Recent trading volatility may indicate market instability.

TORONTO, March 08, 2021 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCQB: HSSHF) announces that it will not be proceeding with the proposed non-brokered private placement of units of the Company (the “Offering”), which was announced on February 23, 2021. Given the recent volatility in trading activity, the Company has decided not to proceed with the Offering at this time, but may consider a non-brokered private placement at a later date with revisions to the number of units and the price per unit.

Michel Amar, the Company’s CEO, stated: “We remain focused on our mining operations at our highly efficient mining facility, and continue to be excited by the general strength of the blockchain sector. The Company is pleased with its increase to its hashrate to approximately 189 Petahash last month, and believe we are well positioned to maintain our strong Bitcoin mining operations. We remain dedicated to our ongoing efforts to continue to increase our hashrate, and our team is committed to evaluating every opportunity to create value for the Company and the shareholders through continued investment in, and expansion of, our productive asset base.”

About Digihost Technology Inc.

Digihost Technology Inc. is a growth-oriented blockchain company primarily focused on Bitcoin mining. The Company's 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. The Company is currently mining approximately 1.2 Bitcoins per day, subject to difficulty. Digihost’s strategy is to focus on continually increasing its hashrate with a concurrent reduction in energy costs.

For further information, please contact:

Digihost Technology Inc.
www.digihost.ca
Michel Amar, Chief Executive Officer
Email: michel@digihost.ca

Cautionary Statement

Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. “Forward-looking information” in this news release includes information about potential further improvements to profitability and efficiency across mining operations, potential for the Company’s long-term growth, and the business goals and objectives of the Company. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: continued effects of the COVID19 pandemic may have a material adverse effect on the Company’s performance as supply chains are disrupted and prevent the Company from operating its assets; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; the digital currency market; the Company’s ability to successfully mine digital currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company’s operations; the volatility of digital currency prices; and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company’s filings at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about: the current profitability in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company’s assets going forward; the Company’s ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

FAQ

Why did Digihost Technology (HSSHF) cancel its private placement?

Digihost canceled the private placement due to recent volatility in trading activity.

What is Digihost's current hashrate?

Digihost's current hashrate is approximately 189 Petahash.

How much Bitcoin does Digihost mine daily?

Digihost is currently mining about 1.2 Bitcoins per day.

What is the company's focus after canceling the private placement?

The company remains focused on enhancing its mining operations and increasing efficiency.