Digihost Reports on Energy Curtailment Programs and Provides August 2023 Production Update

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 4, 2022 to its short form base shelf prospectus dated February 23, 2022.

HOUSTON, Sept. 06, 2023 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based blockchain technology and computer infrastructure company, is pleased to provide unaudited comparative Bitcoin (“BTC”) production results for the month ended August 31, 2023, combined with an operations update. All monetary references are expressed in USD unless otherwise indicated.

During the past month, Digihost participated, and continues to actively participate, in a variety of load curtailment programs that reduce BTC mining costs, as summer capacity pricing has been historically high. By contributing and performing in these load reduction programs, the Company has seen a reduction in its BTC mining costs, in addition to being able to provide crucial grid reliability to surrounding electric consumers.

Monthly Production Highlights for August 2023

• Mined approximately 70 BTC. Production of BTC mined is expected to ramp up by the end of Q3 2023, as the Company finalizes the infrastructure setup at its most recently acquired site. Infrastructure installation has been completed at the Company’s other two sites.
  
  
• The Company held cash, BTC and cash deposits of approximately $2.2 million as of August 31, 2023 (based on a BTC price of $25,930 as of August 31, 2023 per CoinMarketCap), which was in line with Digihost’s cash and crypto holdings of $2.4 million as of July 31, 2023 (based on a BTC price of $29,230 as of July 31, 2023 per CoinMarketCap).
  
  
• Spent approximately $0.3 million on capital expenditure and mining infrastructure support equipment. Digihost continues to monitor its capital expenditures closely with self-funding to avoid equity dilution for its shareholders.
  
  
• Consistent with management’s ongoing commitment to avoid equity dilution for its shareholders, the Company has continued to monetize a portion of its BTC production to fully fund its energy costs.
  
  
• The Company did not purchase or sell any miners during the month.
  

Operations Update

As a result of the Company’s site acquisition in Q1 2023, Digihost’s consolidated operating capacity across its three sites has increased to approximately 100MW, representing approximately 2 EH of computing power.