Digihost Technology (TSXV: DGHI) is focused on expanding its bitcoin mining operation, despite the total carnage we’ve seen in the sector in recent weeks. The firm this morning announced that it will be adding a 55 MW site to its operation.
The company has agreed to purchase property in Alabama via an arrangement with Grede II LLC. The firm is set to acquire property for US$2.75 million, upon which it will build a new 55 MW mining facility. Payment is to consist of $1.5 million in cash due by June 17, with the remainder to be paid in 25 equal payments of $50,000.
The property currently features a 160,000 square foot building comprised of office and industrial warehouse space. Current power capacity is said to be an initial 28 MW, which is expandable to 55 MW. Power is said to be sourced via Alabama Power, whom is reportedly providing a low-cost electrical supply.
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No miner purchase commitments have been made for the facility, with purchases to be made on an “opportunistic basis.”
Also announced this morning is that the firm has paid off $10.0 million in long term debt, with $7.9 million now remaining on the balance sheet in addition to $8.7 million in bitcoin and ethereum.
Digihost Technology last traded at $1.66 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
