Digihost Technology Inc. (“Digihost” or the “Company”) is pleased to announce that the Company has completed the acquisition of a 60 MW power plant in North Tonawanda, NY (the “Acquisition”). Further to the Company’s initial news release on March 24, 2021, the terms of the Acquisition were amended to reflect an all-cash purchase price. No shares of the Company were issued in connection with the Acquisition.
Michel Amar, the Company’s CEO, stated: “We are extremely pleased to announce to our shareholders the completion of the power plant acquisition. This successful transaction represents a significant milestone in the Company’s ongoing infrastructure expansion strategy. As a result of the Acquisition, our current operating capacity is close to 100MW representing approximately 2 EH of computing power. The generator capacity will continue flexible operation to ensure that 24/7 dispatchable supply is made available to area residents, businesses and industry to mitigate impacts of power interruptions in concert with directives of the New York Independent System Operator (NYISO). We are also pleased to have been able to execute this deal with all cash, avoiding equity dilution and providing additional value for our shareholders. The Company continues to diversify on a jurisdictional basis, having expanded in both New York and Alabama, as well as securing a large site in North Carolina.”
Alec Amar, the Company’s President, added: “We are very excited with the long-awaited completion of the Acquisition and look forward to seamlessly carrying on the operation of the power plant. Successful operation of the plant will help support the utility power grid for reliability and our plant will be readily available for residential and commercial consumers during peak periods of demand. The Acquisition will also help support the local community by bringing more skilled jobs to the area and the operation of the plant will bring much needed tax revenue to North Tonawanda.”
Digihost will continue to support New York’s climate initiatives through its agreement to purchase community solar credits from a nearby community solar farm. This renewable energy project, located in National Grid territory, is being managed by Williamsville, NY based energy supplier, EnergyMark. The community solar project is 5MW in size and will produce roughly 9,500,000 kWh’s of clean electricity annually – enough to power more than 1,000 homes. Digihost’s Buffalo, NY facility remains the anchor subscriber to the project. The Company’s facility is located in New York’s Zone-A region, where more than 90% of the power comes from zero emissions generation. This long-term agreement further reduces Digihost’s already low carbon footprint for its blockchain operations in New York State.
Luke Marchiori, the Company’s Chief Renewable Energy Officer, stated: “The Acquisition is significant as it gives us an opportunity to materially expand our operating capacity, while at the same time introducing a new renewable fuel source into our operations. To fuel the plant, Digihost will be procuring locally sourced renewable natural gas produced from dairy farms in Western New York. This facility is unique as the Company can quickly flip from using the power generation on site to support our blockchain infrastructure to supplying electricity to local residents and businesses in times of need.”
