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Digihost Sees Bitcoin Holdings Fall Below 100 BTC In November

Digihost Sees Bitcoin Holdings Fall Below 100 BTC In November

Jay Lutz

Friday, December 02 2022, 08:10:00:AM

Digihost Technologies (TSXV: DGHI) this morning provided the latest stats for its monthly bitcoin production. The firm managed to produce a total of 61.32 bitcoin during the month of November, down from 74.58 bitcoin in October.

Total bitcoin holdings continue to decline for the company, with the firm falling below the 100-bitcoin mark during November to just 98.38 bitcoin in holdings. The firm indicated that it sold bitcoin to be able to fully fund its energy costs.

The problem with that strategy however, is that the firm saw its holdings decline from 118.16 bitcoin at the end of October, with those holdings steadily declining on a month over month basis due to the rut in the price of bitcoin. Earlier this year, the firm liquidated $10 million in bitcoin to repay a collateralized loan facility, with its holdings this year peaking at 797.28 bitcoin.

The current run rate suggests the firm will soon be required to conduct an equity raise to continue to fund operations. Current bitcoin holdings collectively are valued at $1.69 million, while total digital asset holdings amount to $2.62 million.

Despite the continued decline, Digihost stated that the firms mining operations "continue to remain cash flow positive."

The firm also indicated that as a result of the collapse of FTX, the company has moved to transition its crypto to being stored in offline cold wallets to safeguard assets.

Digihost Technologies last traded at $0.79 on the TSX Venture.

Information for this briefing was found via Sedar and the sources 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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