TORONTO, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased to announce its financial results for the third quarter ended September 30, 2021 (all amounts in U.S. dollars, unless otherwise indicated).
Revenue from digital currency mining was $5.5 million in the third quarter of 2021, a 1,153% increase over the corresponding quarter in 2020, and an 8% increase over Q2 2021. The Company also realized total comprehensive income of $2.9 million in Q3 of 2021 as compared to a comprehensive loss of $1.7 million in Q3 of 2020 and a loss of $6.9 million in Q2 of 2021.
Michel Amar, CEO of Digihost, stated: “It is rewarding for the Company to announce strong Q3 financial results generating record top-line revenue growth for the second consecutive quarter along with positive net income. The Company’s improved financial performance is directly related to Digihost’s dedicated focus to managing costs and continued growth in our mining operations. With additional miners arriving in Q4 2021 and in early 2022, Digihost expects to aggressively expand its mining capacity as previous investments in infrastructure are expected to drive continued growth for the Company.”
Third Quarter 2021 Financial Highlights
The following information compares the financial results of the Company for the three months ended September 30, 2021 (“2021”) and the three months ended September 30, 2020 (“2020”):
The following information compares the financial position of the Company as at September 30, 2021 (“2021”) and as at December 31, 2020 (“2020”):
Michel Amar commented: “It is encouraging to see the core strengths of Digihost, primarily our committed team and operational quality, come together to produce quality results and prove our dedication to developing as a diversified leader in the digital asset space. The Company’s measured approach to managing and growing our mining operations paid off with positive results in Q3 and as we remain focused on executing our long-term strategy as we move into 2022.”
|(U.S.$ except per share data)||Three Months Ended September 30|
For the periods ended as indicated
|Revenue from digital currency mining||5,485,754||437,813|
|Operating and maintenance costs||(1,882,023||)||(1,224,911||)|
|Gross profit (loss)||2,712,345||(1,876,967||)|
|General and administrative and other expenses||(1,926,250||)||73,026|
|Operating income (loss)||786,095||(1,803,941||)|
|Net financial expenses||(59,164||)||(19,633||)|
|Net income (loss) for the period||726,931||(1,823,574||)|
|Other comprehensive income|
|Foreign currency translation adjustment||(1,452,384||)||-|
|Revaluation of digital currency (1)||3,591,629||164,315|
|Total comprehensive income (loss)||2,866,176||(1,659,259||)|
|Basic and diluted income (loss) per share – diluted||0.01||(0.05||)|
|Weighted average number of subordinate voting shares |
outstanding – basic and diluted
|Adjusted EBITDA (2)||4,385,272||(947,911||)|
Financial Statements and MD&A
The Company’s Condensed Unaudited Interim Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) thereon for the three and nine months ended September 30, 2021, will be accessible on SEDAR at www.sedar.com under Digihost’s profile.
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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.
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.