Buffalo-based Digihost (DGHI), a relatively small publicly traded bitcoin miner looking to fund ambitious growth plans, this morning announced 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 (SV) shares will be underwritten by H.C. Wainwright & Company.
- Digihost earlier this week announced a fully drawn $10 million credit facility, with a one-year term and 7.5% interest rate.
- Shares are down 13% on Friday, partly thanks to the share offering and partly thanks to a 5% decline in the price of bitcoin (BTC) to $40,500.
- Digihost mined 62.58 bitcoin 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 the year-end, implying more than 700% increase from the January hashrate.
- In comparison, Marathon Digital, 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.