In the last session, Digihost Technology Inc (OTCQB: HSSHF) stock gained 42.88% to $2.0289. A total of 2.53M shares traded hands during the session, with Digihost stock ranging from $1.55 to $2.050 in price. The news of a deal to acquire bitcoin miners and increase hash rate lifted the HSSHF stock on Friday.
Bitcoin miner deal in brief:
Being a blockchain technology company focused primarily on Bitcoin mining, Digihost aims to develop growth-oriented blockchain solutions. Mining facilities owned by HSSHF are located in the Finger Lakes region, with 78.7MW of low-cost power available.
There are options to increase that amount to 102MW. A rate of 200PH is currently being hashed at HSSHF, with potential to reach 3EH after the previously announced acquisition of a 60MW power plant is completed.
On Friday, a Digihost press release revealed that it had acquired 9,900 Bitcoin miners, increasing the HSSHF’s current hash rate by approximately 925PH to 1.145EH.
- HSSHF previously announced the purchase in a news release on May 12, 2021.
- HSSHF is funding the purchase of the Miners by borrowing approximately CA$54,000,000 from equity financings closed since the beginning of 2021.
- The HSSHF also made a simultaneous agreement with Northern Data AG, through which the Northern Data will provide services to the HSSHF, including the installation and hosting of the Miners.
- Deliveries and installations of the Miners are expected to occur incrementally from August to December this year, with full operation expected by the end of 2022.
Cost to HSSHF:
A development of systems to supply the mobile data centers with energy from the facility is expected to cost Digihost (HSSHF) approximately US$4.5 million, which HSSHF expects to fund from its previous equity financings.