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Digihost Technology: There Are Warning Signs

Mike Fay profile picture
Mike Fay


  • Digihost is a no-debt bitcoin miner trading below book value.
  • The discount to book is probably justified given no meaningful HODL stack to speak of and declining BTC production.
  • If I were a DGHI shareholder, I'd be praying for a buyout before the company goes into debt or blows any more capital on call options.
  • I do much more than just articles at BlockChain Reaction: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Cryptocurrency Mining

sefa ozel/iStock via Getty Images

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

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This article was written by

Mike Fay profile picture
5 years as a media research analyst. Main coverage areas are crypto, BTC miners, and media equities. Outside of Seeking Alpha, I write the Heretic Speculator newsletter where I share additional thoughts on finance with more of a social backdrop.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (2)

Tigerbond profile picture
I think NYDIG should take both DGHI and GREE under its wing in some type of combined merger/take-private. DGHI and GREE each own & operate a natgas power plant in upstate NY, so there would be some economy of scale to be had by combining forces.

GREE is mostly just a host for NYDIG now after its debt reorg. Cutoff from new debt, and dilution a non-starter at 40 cents/share, the company appears to be in a very difficult situation to expand its miner rig count (as well as having no place to host them, given their hosting of NYDIG miners now comprises 100% of their NY & SC mining locations).

DGHI is in better shape financially, but will also struggle to grow its miner rig count with negative earnings & similarly limited dilution potential.

The unrelenting rise in global BTC hashrate all but assures the smaller players will be competed out of existence at some future point. It's likely better for the mergers to get underway now before the 2024 halving crushes industry margins even further.
Mike Fay profile picture
@Tigerbond yup, I see it similar.
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