Digihost Technology Stock: There Are Warning Signs (NASDAQ:DGHI)


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One of the Bitcoin (BTC-USD) miners that I’ve had on watch for some time is Digihost Technology (NASDAQ:DGHI). It’s a much smaller cap public miner but it has a potentially compelling setup in that the company has no debt, doesn’t spend as much on SG&A relative to peers, and trades below book value. The company released its full year earnings and March production figures on Monday and I see a few warning signs.

December 312022 December 312021 YoY Change Revenue from digital currency mining 24,190 24,952 -3.1% Cost of sales -20,278 -10,542 92.4% Depreciation and amortization -10,709 -3,281 226.4% Gross profit -6,797 11,129 -161.1%

December 312022 December 312021 YoY Change General and administrative and other expenses -8,352 -10,646 -21.5% Loss on settlement of debt -294 -390 -24.6% Gain (loss) on disposition of cryptocurrencies -11,574 291 -4,077.3% Loss on digital currency option calls -1,950 Operating income (loss) -28,285 2,923 -1,067.7% Revaluation of warrant liabilities 32,010 1,551 1,963.8%



The Company presently anticipates that additional financing maybe required to acquire additional power generation facilities in the future in order to meet the Company’s objective of obtaining access to an additional 100MW of power by the end of 2024. The Company also anticipates that additional financing will be required to purchase the miners required to utilize its maximum capacity.

Monthly BTC production (Digihost)

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