Benzinga | Jun 10, 2021 07:08AM EDT

Bit Digital Announces Strategic Collaboration with Digihost to Increase Combined Hashrates by 400 PH/S

Bit Digital, Inc. ("Bit Digital" or the "Company") (NASDAQ:BTBT) is pleased to announce that the Company has entered into a strategic co-mining agreement (the "Agreement") with Digihost Technologies ("Digihost") (TSXV:DGHI, OTCQB:HSSHF) in North America. Pursuant to the terms of the Agreement, Digithost will provide certain premises (the "Premises") to Bit Digital for the purpose of the operation and storage of a 20 MW Bitcoin mining system (the "Miners") to be delivered by Bit Digital, and Digithost will also provide services to maintain the Premises for a term of two years. The collaboration between Digihost and Bit Digital is expected to generate an increase in hashrate of approximately 400 PH between the companies.

Under the terms of the Agreement, Digihost will provide power for the operation of the Miners and will also provide management services necessary to maintain 95% uptime on the Miners. In consideration for these services, after paying Digihost a very competive rate for power, Digihost and Bit Digital will participate in a profit sharing arrangement based on a fixed distribution formula. It is expected that the Miners will be delivered and installed during the fourth quarter of this year.

Michel Amar, Digithost's CEO, stated: "We are extremely pleased by this strategic collaboration with Bit Digital which, based on current Bitcoin metrics, is expected to deliver significant results through the increase in hashrate of 400 PH between the two companies. Our business strategy continues to be growth through the expansion of our mining infrastructure, vertical integration of low-cost and green sources of energy, strategic partnerships with leading companies in the blockchain sector, and geographic diversification in North America to strategically operate our business in regions where minimal or no carbon footprint is generated."

Bryan Bullett, Bit Digital's CEO, stated: "We are extremely pleased by this strategic collaboration with Digihost which marks our ongoing expansion in North America, as we continue to transition our mining fleet here. Our business strategy continues to encompass growth through the expansion of strategic partnerships with institutional-quality hosting providers with aligned economic interests, to secure efficient access to power and hosting. We look forward to a successful partnership with Digihost."