Mr. Michel Amar reports

DIGIHOST ANNOUNCES 2023 YEAR END FINANCIAL RESULTS AND PROVIDES OPERATIONAL UPDATE

Digihost Technology Inc. has provided a summary of the company's audited financial results for the year ended Dec. 31, 2023 (all amounts in United States dollars, unless otherwise indicated), and a 2024 year-to-date update on operations. The company's audited consolidated financial statements, and management's discussion and analysis (MD&A) for the year ended Dec. 31, 2023, have been filed and made accessible under the company's continuous disclosure profile on EDGAR and on SEDAR+.

Michel Amar, chairman and chief executive officer of Digihost, commented: "Despite a challenging 2023, the company is very pleased to announce that is has reported an increase in revenue over the prior year, as well as an increase in adjusted EBITDA [earnings before interest, taxes, depreciation and amortization]. Two thousand twenty-three was a transformative year for Digihost as we completed the acquisition of a 60 MW [megawatt] power plant in North Tonawanda, N.Y., and entered into agreements with established partners that enabled us to differentiate our revenue steams."

Mr. Amar continued: "Looking forward to 2024, the company is positioned to significantly increase its hashing power by the end of the year, with the goal of reaching approximately six EH [exahashes]. Digihost will continue to target locations and markets with low-cost, underutilized renewable energy where the company can help support local communities. The company also expects to continue to expand its electrical infrastructure and data centres to provide operational control and security over its assets."

Highlights for fiscal 2023 are as follows:

• Revenue of $26.11-million, compared with $24.19-million in the prior year, as the company diversified its revenue verticals through various co-location agreements and the sale of energy;
• Adjusted EBITDA of $1.59-million, an increase of 207 per cent over 2022;
• Total assets of $42.3-million;
• Property, plant and equipment consisting primarily of the company's bitcoin (BTC) miners and mining support infrastructure of $33.38-million;
• Minimal long-term loans payable of $356,000.

The company achieved significant milestones during 2023:

• The company completed an all-cash acquisition of a 60 MW power plant in North Tonawanda, N.Y.;
• Achieved a bitcoin mining hashrate of two EH/s (exahashes per second), representing an increase of 180 per cent on a year-over-year basis;
• Acquired approximately 1,700 high-performance BTC miners during Q1 2023;
• Expanded its revenue streams by entering into new co-location and energy sale agreements, as approximately 31 per cent of the company's 2023 revenues are for services outside of digital currency mining;
• Consistent with management's continuing commitment to minimize equity dilution for its shareholders, the company monetized a portion of its BTC production to fully finance its energy costs and capital expenditures during the year.

The growth generated by Digihost during 2023 has continued into the first quarter of 2024. To date, operational achievements of the company for 2024 are the following:

• Signed a multiyear hosting agreement with one of the world's leading manufacturers of digital currency mining servers. Under the agreement, Digihost will receive an upfront deposit along with 4,640 S19 XPs (21.5 W/TH (watts per terahash)), which equates to approximately 14 MW of hosting. The company plans to deploy these next-generation, highly energy efficient and high-performance miners prior to the next bitcoin halving. The deployment is expected to result in a hash rate increase of approximately 700 PH/s (petahashes per second), bringing Digihost's total hash rate to 2.4 EH/s.
• The company held cash, BTC and cash deposits of approximately $6.2-million as of March 31, 2024 (based on a BTC price of $71,333 as of March 31, 2024, per CoinMarketCap), as compared with $2.8-million as of Dec. 31, 2024 (based on a BTC price of $42,265 as of Dec. 31, 2023, per CoinMarketCap), representing an increase of approximately 121 per cent since the end of 2023.
• Repaid in full a $700,000 secured loan facility.

Operations update

Presently, Digihost's consolidated operating capacity across its three sites represents approximately 90 MW of available power and is mining at hashrate of two EH/s.

Outlook

Digihost's strategic growth plan is to continue to diversify its mining operation while accessing clean sources of energy. The company plans to execute on this plan by expanding its current operational footprint in New York and Alabama, and is working toward accessing power and building infrastructure in other locations by the end of 2024 that would lead to an increase in the company's hashing power by approximately four EH.

At-the-market financing update

On March 4, 2022, the company entered into an offering agreement with H.C. Wainwright & Co. LLC as agent, pursuant to which the company established an at-the-market (ATM) equity program. From the commencement of the ATM program through Dec. 31, 2023, the company issued 556,954 subordinate voting shares in exchange for gross proceeds of $1,088,372, at an average share price of $1.95, and received net proceeds of $1,048,285 after paying commissions of $32,651 to the agent and incurring $7,436 of other transaction fees.

Subsequent to year-end through the expiry of the ATM program on March 23, 2024, the company issued 3,600 subordinate voting shares in exchange for gross proceeds of $5,457, at an average share price of approximately $1.52, and received net proceeds of $5,032,000 after paying commissions of $164 to the agent and incurring $261 of other transaction fees.

About Digihost Technology Inc.

Digihost is a growth-oriented technology company focused on the blockchain industry. The company operates from three sites in the United States and, in addition to managing its own operations, provides hosting arrangements at its facilities.

We seek Safe Harbor.