Digihost Announces Y/Y 129% Increase in Quarterly Bitcoin Production and Provides Operations Update - Seite 2

The Company mined an additional 65.85 BTC during the second quarter of 2022 compared to the first quarter of 2022, representing an increase of 35%.

Figure 2. Quarter-over-quarter BTC Production

	Q2 2022	Q1 2022	QoQ Increase
Mined BTC	251.68	186.83	64.85
Approximate BTC value	$19,785	$45,539	($25,754	)
Production Value	$4,979,489	$8,508,051	($3,528,563	)

Operational Update

Digihost is pleased to announce that planning is well under way at the Company’s new Alabama site (please refer to Digihost’s news releases dated June 14 and June 22, 2022) with mining operations projected to commence in Q4. Based upon power rates currently being negotiated by management with Alabama Power, Digihost projects its operational breakeven point will occur at a BTC price of approximately $12,000. The Company’s move to Alabama and the opening of a new head office in Houston, Texas earlier this year are milestones consistent with Digihost’s strategic plan to diversify jurisdictional risk.

Although Digihost’s operations are currently located in Buffalo and North Tonawanda the Company does not intend to open any new mining facilities in New York State (“NYS”). Due to the recent material rise in energy costs in NYS the Company anticipates curtailing operations during peak hours at current BTC prices. Additionally, Digihost will continue its practice of drawing less power from the grid when consumer demand periodically spikes as a result of hot weather conditions expected over the next several months.

In the current inflationary environment management has introduced additional internal control measures to ensure adherence to its aggressive cost control program. Zero-based budgeting has been implemented on a line-by-line base regardless of the expense category. This cost control program has already resulted in material savings.