TORONTO, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased to announce its financial results for the second quarter ended June 30, 2021 (all amounts in U.S. dollars, unless otherwise indicated).
Revenue from digital currency mining was $5.1 million in the second quarter of 2021, a 369% increase over the corresponding quarter in 2020, and a 7% increase over the previous quarter. The Company generated cash flow of $20.3 million in the second quarter of 2021, up significantly from $95k for the same period in 2020, and $7.1 million higher than the previous quarter. Gross profit increased to $2.9 million compared to a gross loss of $1.0 million in Q2 of 2020 and is $0.8 million higher compared to Q1 of 2021.
Michel Amar, CEO of Digihost, stated: “We are proud of the record top-line revenue growth, as well as gross profit from mining, achieved by Digihost during the second quarter of 2021. As a Company, we are looking forward to building on these results through the expansion of our mining capacity and strategic co-location agreements in order to continue to deliver record revenue and profit for our shareholders.”
Second Quarter 2021 Financial Highlights
The following information compares the financial results of the Company for the three months ended June 30, 2021 (“2021”) and the three months ended June 30, 2020 (“2020”):
The following information compares the financial position of the Company as at June 30, 2021 (“2021”) and as at December 31, 2020 (“2020”):
Recent Highlights
Michel Amar commented: “Our long-term vision and business strategy is to increase our mining capacity and continue to grow as a leader in the blockchain technology space. The efforts we have undertaken in the past few months illustrate our commitment to pursuing every opportunity in this sector as well as our sustained efforts to generate significant shareholder value in an environmentally conscious manner.”
(U.S.$ except per share data) | Three Months Ended June 30 | |||
For the periods ended as indicated | 2021 | 2020 | ||
Revenue from digital currency mining | 5,112,553 | 1,089,877 | ||
Operating and maintenance costs | (1,803,223 | ) | (1,023,457 | ) |
Depreciation | (361,628 | ) | (1,089,870 | ) |
Gross profit (loss) | 2,947,702 | (1,023,450 | ) | |
General and administrative and other expenses | (3,167,377 | ) | (479,030 | ) |
Operating loss | (219,675 | ) | (1,502,480 | ) |
Net financial expenses | (59,174 | ) | (21,280 | ) |
Net loss for the period | (278,849 | ) | (1,523,760 | ) |
Other comprehensive income | ||||
Foreign currency translation adjustment | 806,492 | - | ||
Revaluation of digital currency (1) | (7,476,828 | ) | 228,894 | |
Total comprehensive income (loss) | (6,949,185 | ) | (1,294,866 | ) |
Basic and diluted loss per share – diluted Weighted average number of subordinate voting shares outstanding – basic and diluted | (0.00) 66,484,618 | (0.04) 40,073,661 | ||
EBITDA (2) | 82,779 | (433,890 | ) | |
Adjusted EBITDA (2) | 2,688,543 | 169,371 |
Financial Statements and MD&A
The Company’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) thereon for the three and six months ended June 30, 2021, will be accessible on SEDAR at www.sedar.com under Digihost’s profile.
About Digihost Technology Inc.
Digihost Technology Inc. is a growth-oriented blockchain technology company primarily focused on Bitcoin mining. The Company is currently hashing at a rate of 200PH with plans to expand to a hashrate of 3.6 EH by the end of the first half of 2022.
For further information, please contact:
Digihost Technology Inc.
www.digihost.ca
Michel Amar, Chief Executive Officer
T: 1-818-280-9758
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
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 in this news release. 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 news 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 hashrate expansion, diversification of operations, 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: 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; the ability to establish new facilities for the purpose of research & development; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; delivery of mining rigs for hosting may not be realized in the number anticipated, or at all, and resulting hashing power may materially differ from that anticipated; 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.
Last Trade: | US$1.17 |
Daily Change: | -0.05 -4.10 |
Daily Volume: | 64,714 |
Market Cap: | US$38.620M |
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