Digihost Announces $31.4M in YTD Revenue, Representing a 104% YOY Increase
15 Novembre 2024 - 12:00PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq / TSXV: DGHI), an innovative
energy infrastructure company that develops cutting-edge data
centers, is pleased to provide a summary of the Company’s unaudited
financial results for the third quarter ended September 30, 2024
(all amounts in U.S. dollars, unless otherwise indicated) and a
2024 year-to-date update on its operations. The Company’s unaudited
consolidated financial statements and management’s discussion and
analysis (“
MD&A”) for the nine-month period
ended September 30, 2024 have been filed and made accessible under
the Company’s continuous disclosure profile on SEDAR+ at
www.sedarplus.ca and also on EDGAR at www.sec.gov/edgar.
Comparative Financial Highlights for the Three-Month
Period Ended and as at September 30, 2024:
- Revenue of $9.2 million for the
three-month period ended September 30, 2024, compared to $5.4
million for the three-month period ended September 30, 2023,
representing an increase of 71%, as the Company has significantly
diversified its revenue verticals through various colocation
agreements and the sale of energy;
- Digital currencies of $4.9 million,
and total current assets of $6.7 million;
- The Company ended the quarter with
a positive Net Working Cash flow of approximately $1 million.
Comparative Financial Highlights for the Nine-Month
Period Ended September 30, 2024:
- Revenue of $31.4 million for the
nine-month period ended September 30, 2024, compared to $15.3
million for the nine-month period ended September 30, 2023,
representing an increase of 104%, as the Company has significantly
diversified its revenue verticals through various colocation
agreements and the sale of energy;
- Revenue from the sale of energy
increased by approximately 128% compared to the nine-month period
ended September 30, 2023;
- EBITDA* of $5.5 million for the
nine months ended September 30, 2024. This represents a nearly 350%
increase compared to the nine-month period ended September 30,
2023.
(U.S.$ in thousands except share and per share
data) |
Nine Months Ended |
|
September 30,2024 |
September 30,2023 |
Revenue from Digital Currency Mining |
10,318 |
|
13,522 |
|
Revenue from Colocation Services |
10,714 |
|
- |
|
Revenue from Sale of Electricity |
6,283 |
|
- |
|
Revenue from Sale of Energy |
4,050 |
|
1,779 |
|
Total Revenue |
|
15,332 |
|
|
|
|
Cost of Revenue |
(25,511) |
|
(10,515) |
|
Depreciation and Amortization |
(11,790) |
|
(9,732) |
|
Miner Lease & Hosting Agreement |
- |
|
(791) |
|
Gross loss |
(5,936) |
|
(5,707) |
|
|
|
|
General and administrative and other expenses |
(3,091) |
|
(3,727) |
|
Foreign exchange |
1,127 |
|
(101) |
|
Gain on disposition of cryptocurrencies |
229 |
|
802 |
|
Change in FV of loan payable |
(20) |
|
(144) |
|
Other Income (expense) |
14 |
|
90 |
|
Change in fair value - Miner Lease Agreement |
- |
|
(268) |
|
Share based compensation |
(1,267) |
|
(1,217) |
|
Gain on Revaluation of Digital Currencies |
251 |
|
23 |
|
|
|
|
Operating loss |
(8,692) |
|
(10,250) |
|
Revaluation of warrant liabilities |
2,380 |
|
(1,756) |
|
Net financial expenses |
(22) |
|
(195) |
|
Net income (loss) before income taxes |
(6,334) |
|
(12,200) |
|
Income tax expense |
- |
|
- |
|
Net income (loss) for the year |
(6,334) |
|
(12,200) |
|
Foreign currency translation adjustment |
(1,091) |
|
104 |
|
Revaluation of digital currency, net of tax |
- |
|
- |
|
Total comprehensive loss for the year |
(7,424) |
|
(12,096) |
|
Basic and diluted income (loss) per shareWeighted average number of
subordinate voting shares outstanding – diluted |
(0.21)29,929,917 |
|
(0.43)28,525,059 |
|
* EBITDA – NON-IFRS MEASURE
EBITDA is a non-IFRS financial measure and
should be read in conjunction with and should not be viewed as an
alternative to or replacement of measures of operating results and
liquidity presented in accordance with IFRS. Readers are referred
to the reconciliations of non-IFRS measures included in the
Company’s MD&A and in the table below.
The following table provides a reconciliation of net income to
EBITDA for the fiscal periods ended September 30, 2024 and
2023:
|
Nine months ended |
|
|
2024 |
|
2023 |
|
|
$ |
|
$ |
Income (loss) before other items |
|
(6,333,643) |
|
(12,200,349) |
Taxes and Interest |
|
22,041 |
|
194,971 |
Depreciation |
|
11,789,865 |
|
9,732,088 |
EBITDA |
|
5,478,263 |
|
(2,273,290) |
|
|
|
|
|
Operations Update
Presently, Digihost’s consolidated operating
capacity across its three sites represents approximately 100MW of
available power, and Digihost is mining at a hash rate of 3 EH/s.
The Company experienced significant growth within its colocation
services segment, which now serves as the Company's largest revenue
segment. During the quarter, the Company completed maintenance at
its flagship North Tonawanda power plant to increase long-term
efficiency. The Company expects to bring the plant back to full
operational power in the fourth quarter of 2024.
Outlook
Digihost remains focused on expanding its power
portfolio and maximizing the optimal use of its energy resources.
The Company has now produced more revenue year-over-year through
its colocation services than digital mining, and it expects to
continue to expand the portion of its revenue from colocation
services in the future. Through colocation with some of the world’s
largest mining companies, the Company will have access to the
latest generation of miners, retaining its cutting-edge efficiency
and low cost of mining production without the downside associated
with mining outright (e.g., significant capital expenditure outlay
and accelerated depreciation). This strategy lets the Company focus
its investment and assets upstream on power development and
production. This strategy is designed to aid the Company in
expanding its MW footprint significantly in 2025, with the goal of
achieving an expected hash rate of 6-7 EH in 2026.
Simultaneously, with the growth of the Company’s
power portfolio, the Company looks forward to converting portions
of its existing asset base into tier-3 data center infrastructure
in the coming months. Leveraging its established electrical
infrastructure, regulatory expertise, and customer relationships,
Digihost anticipates that this conversion will reduce both costs
and timelines relative to industry standards, providing a distinct
competitive edge.
About Digihost
Digihost is an innovative energy infrastructure
company that develops cutting-edge data centers to drive the
expansion of sustainable energy assets.
For further information, please contact:
Digihost Investor
Relationswww.digihostpower.comT: 888-474-9222Email:
ir@digihostpower.com
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 are based on expectations, estimates and
projections as at the date of this news release and are covered by
safe harbors under Canadian and United States securities laws.
Forward-looking information in this news release includes
information about potential further improvements to profitability
and efficiency across mining operations, including as a result of
the Company’s expansion efforts, 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: future capital needs and
uncertainty of additional financing; share dilution resulting from
equity issuances; risks relating to the strategy of maintaining and
increasing Bitcoin holdings and the impact of depreciating Bitcoin
prices on working capital; development of additional facilities and
installation of infrastructure to expand operations may not be
completed on the timelines anticipated by the Company, or at all;
ability to access additional power from the local power grid; 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;
development of additional facilities to expand operations may not
be completed on the timelines anticipated by the Company; ability
to access additional power from the local power grid; an increase
in natural gas prices may negatively affect the profitability of
the Company’s power plant; 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 in
the Company’s filings at www.sedarplus.ca and www.SEC.gov/EDGAR.
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; the ability to maintain reliable and economical sources of
power to run its cryptocurrency mining assets; the negative impact
of regulatory changes in the energy regimes in the jurisdictions in
which the Company operates; 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
uncertainties therein. The Company undertakes no obligation to
revise or update any forward-looking information other than as
required by law.
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