Bitcoin Miner Digihost Aims to Triple Capitalization With $250M Share Offering
Shares are down 13% on news of the offering and drop in bitcoin's price.
Mar 4, 2022 at 4:16 p.m. UTCUpdated May 11, 2023 at 7:14 p.m. UTC
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Digihost (DGHI), a relatively small publicly traded bitcoin miner looking to fund ambitious growth plans, announced Friday an “at-the-market” share offering for up to $250 million.
- The company’s market cap was less than $100 million as of Thursday’s close, making a capital raise of $250 million – even over a period of time – a sizable amount. Proceeds will mostly be used to fund growth and development of existing mining operations.
- The sale of subordinate voting shares will be underwritten by H.C. Wainwright & Co.
- Digihost, which is based in Buffalo, N.Y., earlier this week announced a fully drawn $10 million credit facility, with a one-year term and 7.5% interest rate.
- Shares were down 13% on Friday on news of the share offering and as bitcoin's (BTC) fell 5% to $40,500.
- Digihost mined 62.58 bitcoins in January with a hashing rate of about 415 petahash per second. It said at the time it planned to expand its mining power to 3.6 exahash per second (EH/s) by year end, implying a more than 700% increase from the January hashrate.
- In comparison, Marathon Digital (MARA), one of the largest publicly traded bitcoin miners, said its current hashrate is about 3.8 EH/s, with plans to expand to 23.3 EH/s by early 2023.
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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets