Bitcoin Miner Digihost Aims to Triple Capitalization With $250M Share Offering

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.