What’s going on with HSSHF?
Digihost Technology Inc. (HSSHF) stock gained 14.66% after the Canadian company announced it entered into a second strategic co-mining agreement with Bit Digital, Inc. (BTBT). Digihost will provide premises to Bit Digital to operate 100 MW Bitcoin mining systems.
The miners will be delivered by Bit Digital over the two-year term of the contract. Shares of HSSHF were trading at $1.33 per share, while BTBT shares gained 29.55% and were trading at $5.48 per share on Monday afternoon.
What does this mean for Digihost Technology?
Digihost agreed to provide power and management services for the operation of the miners and Digihost and Bit Digital have a profit-sharing arrangement based on a fixed distribution formula. The miners are on track for delivery and installation beginning in January 2022.
The expanded deal between Digihost and Bit Digital is anticipated to drive the hashrate up to approximately 2 EH, with a total hike in hashrate between the two companies at 2.4 EH -- including the initial collaboration agreement announced on June 10.
“We are committed to build on and expand our strategic collaboration with Bit Digital, which based on current Bitcoin metrics, is expected to deliver significant results through the overall increase in hashrate of 2.4 EH between the two companies,” said Michel Amar, Digihost’s CEO.
“Our business strategy continues to be growth through the expansion of our mining infrastructure, vertical integration of green sources of energy and tactical partnerships with leading companies in the blockchain sector, while striving to maintain our focus on being an industry leading ESG company,” Amar added.
Amar also noted Digihost was “currently in the process of establishing a research and development facility in Houston, Texas, which will serve as the technology headquarters for the company from where we plan to explore cloud computing, artificial intelligence and deep learning applications. The expansion into Texas fits with our objective of geographic diversification and access to top tier human resources in the technology sector."
“By signing this agreement, we believe that Bit Digital has secured power and hosting sufficient to complete the migration of our current fleet to North America in full, and additional capacity to accommodate expected miner purchases,” said Bryan Bullet, Bit Digital’s CEO. “As previously announced, we anticipate significant purchase activity in the coming months, due to spot market dislocation in China and our unique access to that market. This agreement with Digihost secures a key component of activating this opportunity, and is expected to enable rapid deployment of newly purchased miners.”
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Digihost Technology Inc is a blockchain company focused on Bitcoin mining. The company's mining facility is located in Buffalo, NY, and is equipped with an 18.
