Digihost Reports on Green Energy Consumption

Rhea-AI Summary

Digihost Technology Inc. (OTCQB: HSSHF) reports that over 90% of its energy for Bitcoin mining comes from carbon-neutral sources, with over 50% from renewables. Key energy sources include Hydro (42.68%) and Nuclear (41.19%). The company aims to reduce its carbon footprint through the acquisition of a 60MW power plant and plans to utilize renewable natural gas. Additionally, Digihost granted 1,290,000 stock options at $2.45, vesting in six months. CEO Michel Amar emphasizes the company's commitment to environmentally conscious operations, targeting growth through clean energy integrations.

Positive

• Over 90% of energy from zero carbon sources.
• More than 50% of energy from renewable resources.
• Acquisition of a 60MW power plant to enhance operations.
• Commitment to environmentally conscious Bitcoin mining.

Negative

• None.

TORONTO, May 17, 2021 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased to report that over 90% of the energy consumed by the Company in its Bitcoin (“BTC”) mining operations is from sources that create zero carbon emissions and more than 50% of the energy consumed by the Company is generated from renewable resources.

The following table provides a breakdown of the sources of energy consumed by Digihost in its BTC mining operations in 2020:

SOURCE OF ENERGY *	%
Hydro	42.68
Nuclear	41.19
Wind	6.45
Hydro pumped storage	0.56
Other renewables	1.15
Gas	7.00
Duel fuel	0.72
Coal	0.23
Oil	0.02

* Source of Energy information obtained from NYISO: Zone A - E

A cornerstone of Digihost’s business strategy is to continue to mine BTC in an efficient and environmentally conscious manner, thereby minimizing the Company’s carbon footprint.   Digihost will assess a number of alternatives including the purchase of carbon credits to reduce its already low carbon footprint. The Company’s long-term plans for growth include vertical integration of power production from low-cost, clean and renewable sources of energy. On March 24, 2021, the Company announced the acquisition of a 60MW power plant for which it intends, to the extent possible, to source and utilize renewable natural gas and also engage in the practice of acquiring renewable energy certificates, all in line with the Company’s objective to reduce and mitigate its carbon footprint.

Michel Amar, the Company’s CEO, stated: “We are extremely proud to report that over 90% of the energy consumed by Digihost is from sources producing zero carbon emissions, and that over 50% is from renewable sources of energy, making Digihost one of the cleanest green Bitcoin mining operations in the United States. As a Company, we have always been cognizant of the potential impact Bitcoin mining could have on the environment and therefore have planned our growth and expansion to be environmentally conscious, in our pursuit of opportunities that maximize value for our shareholders.”

Stock Option Grant

The Company also announces that it has granted to the directors, officers, employees and consultants of the Company an aggregate of 1,290,000 incentive stock options (the “Stock Options”) to purchase common shares under the Company’s incentive stock option plan. Each Stock Option is exercisable into a common share of the Company at a price of $2.45 for a period of five years from the date of grant. The Stock Options will vest fully on the six-month anniversary of the date of grant and be subject to the terms and conditions of the Company’s stock option plan and the policies of the TSX Venture Exchange.

About Digihost Technology Inc.

Digihost Technology Inc. is a growth-oriented blockchain technology company primarily focused on Bitcoin mining. The Company's mining facilities are located in Upstate New York, and are equipped with 78.7 MW of low-cost power with the option to expand to 102MW. The Company is currently hashing at a rate of 200PH with potential to expand to a rate of 3EH upon the completion of the previously announced acquisition of a 60MW power plant.

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

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” and “forward-looking statements” (collectively, “forward-looking information”) 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 listing on Nasdaq, hashrate expansion, diversification of operations to include Ethereum technology, 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, performance or achievements to differ materially from those described in such forward-looking information include, but are not limited to: risks relating to completion of the Nasdaq listing process, 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

What percentage of energy for Bitcoin mining does Digihost use from renewable sources?

Over 50% of the energy consumed by Digihost in its Bitcoin mining operations is generated from renewable resources.

What are the main sources of energy used by Digihost for Bitcoin mining?

The main sources of energy for Digihost's Bitcoin mining are Hydro (42.68%) and Nuclear (41.19%).

What are the stock options granted by Digihost?

Digihost announced the grant of 1,290,000 stock options at a price of $2.45, which will vest fully after six months.

What is Digihost's plan for reducing its carbon footprint?

Digihost plans to acquire carbon credits and invest in renewable energy sources as part of its strategy to minimize its carbon footprint.

What is the current hashing rate of Digihost?

Digihost is currently hashing at a rate of 200PH, with potential to expand to 3EH.