Digihost DGHI Announces Strong Q3 2021 Financial Results And Crypto Balance of $22.8 Million in 2021

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Big News! Digihost announces its third quarter financial results ended September 30, 2021. Check out the article on our site for an overview of our company’s strong q3 financial results.

Digitalhost Technology Inc. (Digihost or the Company) (TSXV: DGHI; OTCQB: HSSHF) announces its third quarter financial results ended September 30, 2021 (all amounts in US dollars, unless otherwise indicated).

During the third quarter of 2021, digital currency mining revenues were $5.5 million, a 1,153% increase over the corresponding quarter in 2020, and an 8% increase over Q2 2021. In addition, the Company achieved a comprehensive loss of $1.7 million in Q3 of 2020 and a loss of $6.9 million in Q2 of 2021, bringing its total comprehensive income for Q3 of 2021 to $2.9 million.

Digihost DGHI Announces Strong Q3 2021 Financial Results And Crypto Balance of $22.8 Million in 2021
Digihost Technology Inc. is a TSXV: DGHI; OTCQB: HSSHF-listed company with offices in Toronto, Montreal and the United States and represents one of the largest Canadian public companies providing cloud hosting and security services to companies around the world.

Record Top Line Revenue Growth Reported by Digihost CEO

The CEO of Digihost, Michel Amar, said: “I am pleased to announce Digihost achieved record top-line revenue growth and positive net income for the third consecutive quarter.
 As a result of Digihosts dedicated focus on managing costs and continuing growth in our mining operations, the Company has improved its financial performance. 

The Company anticipates aggressively expanding its mining capacity, as previous investments in infrastructure will drive continued growth. Additional miners are expected to arrive during the fourth quarter of 2021 and early in 2022.

Q3 Financial Report Details:

Following is a comparison of Company’s financial results for the three months ended September 30, 2021 (2021) and three months ended September 30, 2020 (2020):

  • $5.5 million in revenue from digital currency mining in 2021, up from $0.4 million in 2020, a 1,153% increase;
  • In 2020, the gross loss margin from operations was 429million, while in 2021, the gross profit margin from operations was 49% million;
  • Produced Adjusted EBITDA of $4.4 million in 2021, up significantly from a negative amount of $0.9 million in 2020;
  • An absolute increase of 273% from a total comprehensive loss of $1.7 million in 2020 to $2.9 million in 2021;
  • An absolute increase of 140% from loss of $1.8 million in 2020 to a net income of $0.7 million in 2021;

Following is a comparison of the Company‘s financial position as of September 30, 2021 (2021) and December 31, 2020 (2020):

  • The cash balance in 2021 increased by $17.2 million from $0.03 million in 2020;
  • The digital currencies balance in 2021 will be $22.8 millionwith 452.24 Bitcoins and 1,000.89 Ethereum, up from $4.5 million in 2020, with 195.52 Bitcoins, an increase of $18.3 million and 256.72 Bitcoins and 1,000.89 Ethereum.
    In the final inventory valuation, Bitcoin was valued at approximately $44k per unit;
  • An increase of $58.0 million in assets from $16.5 million in 2020 to $74.5 million in 2021;
  • Liabilities decreased by $0.6 million from $6.1 million in 2020 to $5.5 million in 2021; and
  • The total shareholders equity for 2021 will be $68.9 million, an increase of $58.5 million from 2020’s $10.4 million.

Recent Highlights

  • The Company announced on July 26, 2021 that it had entered into a second strategic co-mining agreement with Bit Digital, Inc. (Bit Digital). Digihost will provide Bit Digital with certain premises for the operation of a 100 MW Bitcoin mining system, to be delivered by Bit Digital for a two-year period under the terms of the agreement. As a result of the expanded collaboration between Digihost and Bit Digital, an additional increase of approximately 2 EH is expected between the two companies, and a total increase of approximately 2.4 EH between the two.
  • On October 5, 2021, the Company announced that it intends to consolidate the outstanding subordinate voting shares and proportionate voting shares of the Company on the basis of three (3) pre-consolidation shares for every one (1) post-consolidation share in order to facilitate a proposed listing of its subordinate voting shares on the Nasdaq Capital Market and satisfy the minimum share price requirement set by Nasdaq.
  • The Company announced October 13, 2021, that it had received 1,952 high-performance M30 Bitcoin miners (the Miners) which are currently being installed in the Companys data center and are expected to be fully operational within two weeks. of the announcement.
  • Currently, the Company holds 472.58 Bitcoin and 1,000.89 Ethereum, respectively. Based on current Bitcoin and Ethereum prices, the Companys digital currency holdings are valued at approximately $31.2 million and $4.2 million, respectively.

Digihost’s Key Strengths

Michel Amar commented that it was encouraging to see Digihost’s key strengths, primarily their committed team and operational quality, come together to produce quality results and show their commitment to growing as a diversified leader in the digital asset market. Amar added that their measured approach to managing and growing their mining operations has paid off in Q3 as they remain focused on executing their long-term strategy in the months ahead.

(U.S.$ except per share data) Three Months Ended September 30
For the periods ended as indicated 2021 2020
Revenue from digital currency mining 5,485,754 437,813
Operating and maintenance costs (1,882,023 ) (1,224,911 )
Depreciation (891,386 ) (1,089,869 )
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 74,934,331 40,073,661
EBITDA (2) 1,618,317 (733,704 )
Adjusted EBITDA (2) 4,385,272 (947,911 )
  1. Non-IFRS measure. A reconciliation to its nearest IFRS measures is provided under “Adoption of new accounting policies – Digital Currencies” in the Company’s MD&A.
  2. Non-IFRS measure. A reconciliation to its nearest IFRS measures is provided under “Adjusted EBITDA – Non-GAAP Measure” in the Company’s MD&A.

Notable Financial Data and MD&A

You can access Digihost’s Condensed Unaudited Interim Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) regarding those financial statements on SEDAR by visiting www.sedar.com under Digihost’s profile.

For further information, please contact:

Digihost Technology Inc.www.digihost.caMichel Amar, Chief Executive Officer T: 1-818-280-9758Email: michel@digihost.ca

The information contained in this news release has not been reviewed or approved by any stock exchange, securities commission or other regulatory authority. This news release is not warranted as accurate or complete by the TSX Venture Exchange or its Regulation Services Provider (as defined in the TSX Venture Exchange‘s policies).

Source: Digihost Technology Inc.

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