Digihost Technology Stock

Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. The company produces digital currencies by mining.

The company’s mining facility, the Buffalo Mining Facility, is located in Buffalo, New York with over 70,000 square feet of usable space and 115,000 kilovolt ampere (KVA) outdoor substation under lease with an option to lease additional space totaling 240,000 square feet.

The Buffalo Mining Facility is the company’s only operational mining facility. As the Buffalo Mining Facility is located in a foreign jurisdiction, being Buffalo, New York, the company’s operations are significantly dependent on the production of the Buffalo Mining Facility. The company purchases all of its power consumed at the Buffalo Mining Facility from EnergyMark LLC (EnergyMark), and for all quantities of power used by the company.

The company’s operation in the digital currency mining industry requires extensive knowledge of cryptocurrency mining, cryptocurrency economics, and blockchain technology. Further, the company’s focus on vertical integration with energy production and its focus on environmentally conscious development requires specialized knowledge of the energy procurement industry, with a particular focus on green energy.

During April 2021, the comopany was approved for an account with Gemini Trust Company, LLC (Gemini). Gemini is a digital currency exchange and custodian that allows customers to buy, sell, and store its digital assets. Gemini was the first crypto exchange and custodian in the world to complete a SOC 2 Type 1 and a SOC 2 Type 2 examination.

The company performs credit due diligence in the normal course of business when beginning a relationship with counterparties, as well as during on-going business activities.

Competition

The digital currency mining industry is highly competitive. In addition, there exist many online companies that offer digital currency cloud mining services, as well as companies, individuals and groups that run their own mining farms. Miners can range from individual enthusiasts to professional mining operations with dedicated data centres, including those of the kind operated by the company’s principal publicly-listed competitors. The largest competitor operating in the same space as the company in North America is Hut 8 Mining Corp. There are several other companies competing in the company’s industry, including Riot Blockchain, Inc., MGT Capital Investments Inc., Marathon Digital Holdings Inc., Bitfarms Ltd., Argo Blockchain Plc, CryptoStar Corp., HIVE Blockchain Technologies Ltd., Skychain Technologies Inc., DMG Blockchain Solutions Inc. and Link Global Technologies Inc.

History

Digihost Technology Inc. was originally incorporated under the Business Corporations Act (British Columbia) (BCBCA) in 2017.