Digihost Announces At The Market Offering Nearly 3 Times The Size Of Current Valuation

Digihost Technology (TSXV: DGHI) is apparently looking to completely blow out its share structure. The firm this morning announced a massive at the market financing, that at current prices would more than triple its shares outstanding.

The firm this morning announced that it has put into place a US$250 million at-the-market financing program. The program itself is to be facilitated by H.C. Wainwright & Co, whom will receive a 3.0% cash commission on the financing.

Proceeds from the program are to be used for the growth and further development of its mining operations. Funds will also be used for working capital and general corporate purposes.

The offering, at US$250 million, is significant given that the firms entire market capitalization as of yesterday’s close sits at US$94.8 million – a fraction of the total offering size. At yesterday’s closing price of US$3.83, it translates to about 65.3 million new shares that are to be issued – assuming the price of the equity stays flat for the next year, and assuming that the company fully fills the financing. Comparatively, the company currently has 25.03 million shares outstanding prior to the start of the program.

Digihost Technologies last traded at $4.83 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.

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