What’s up investors, we are now beginning to observe a boom in crypto trading volumes
as activities cool down in the stock markets.
Even retail investors who helped fuel the surge in share trading for most of 2020 have
turned their attention to betting on the more speculative crypto markets.
So it appears the time has never been better to enter the crypto mining space or to get
exposure to it..
So in this video, I’ll be sharing with you one exciting crypto currency penny stock,
which has rapidly been expanding its mining capacity and has plenty of upside..
So I will be covering the company overview, their outlook and key catalysts for you to
consider it in your portfolio or your watchlist as you deem necessary.
So please make sure you stay through to the end as you don’t want to miss out on anything.
Also be informed that this video is not financial advice and the markets have recently been
very unfavourable to penny stocks, and with this stock being a crypto penny stock, it
carries extra risks de due to correlation to the major currencies.
So this stock is very risky and, so only consider it if you are comfortable with the risks and
not to follow the hype for fear of missing out.
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So with that said, let’s get straight into it and talk Digihost Technology
OTC (HSSHF), and on the Toronto Stock Exchange (DGHI) has a share price of $1.24 and a market
capitalization of $82.5mn.
Its share price is down by 16.22% in the last month but it has had a fantastic momentum
over the last 6 months up by 629% which is just brilliant.
This stock is OTC QB listed with over 66mn shares outstanding and over 319000 shares
traded over 30day period.
Digihost Technology Inc. is a growth-oriented blockchain company primarily focused on Bitcoin
mining.
The Company's mining facilities are located in Upstate New York, and are equipped with
78.7 MW of low-cost power with the option to expand to 102MW.
The Company is currently hashing at a rate of 190PH (190 quadrillions hashes per second)
with potential to expand to a rate of 3EH (3 quintillion per sec) upon the completion
of the recently announced acquisition of a 60MW power plant.
This would be amongst the highest sector hashing rates which would be a huge milestone for
this penny stock.
They mine bitcoin and other cryptocurrencies in one extremely low cost and low power consumption
data center in Buffalo, NY.
This helps them to be competitive against their miner peers in the industry.
This cryptocurrency endeavor needs three features to operate at peak efficiency and be viable
which they have a strong focus on.
First is High-Efficiency & that’s data centers operating with high-efficiency and ensuring
higher hash rates.
Second is Proprietary software to monitors our hardware 24/7, temperature, hash rate,
wattage, fans and broader operating conditions.
Finally, Low-cost electricity Mining, which means higher profits, as coins can be mined
with lower overhead costs.
DigiHost maintains a single large-scale cryptocurrency mining operation.
We currently own 11,800 miners and growing, with an operating capacity of 42 megawatts.
Electricity costs are low, and we have a high-efficiency data center.
Our custom software monitors hardware temperature, hash rate, memory, wattage, and fans 24/7.
So Digihost competes as a miner through a carefully crafted and executed strategy and
This puts them among the largest miners in the business.
Digihost recently Acquired a 60 MW Power Plant Increasing its Hashrate Capacity to 3 EH (3
quintillion hashes per sec) bringing the Company’s total power capacity to approximately 102
MW.
The Company’s ability to generate its own power will significantly reduce electricity
costs, the Company’s largest operating expense for its cryptocurrency mining operations.
It is estimated that with the acquisition of this Digifactory1, the all-in cost of electricity
will be reduced to under US$0.03 per kw/h.
Digifactory1 will have the capacity to operate an additional 18,000 top tier Bitcoin miners,
which if added to the existing fleet of 11,800 miners already in operation, would combine
for a total Bitcoin mining capacity of approximately 400 Bitcoins per month as of today’s mining
difficulty factor.
Additionally, the expanded capacity would allow for a potential increase to the existing
hashrate of 190 PH to up to 3 EH.
This substantial increase in both Bitcoin mining output capacity and hashrate would
be the direct result of potentially adding up to 18,000 latest generation Bitcoin miners,
versus the current operating mix of 11,500 older and newer version Bitcoin miners.
In their Year End 2020 Financial Results, the company
announced that “Although 2020 was a challenging year for all crypto currency miners including
Digihost, they had embarked upon a transformative period for their Company.”
So Beginning in 2021, the Company achieved many significant milestones in its evolution
as a top tier blockchain technology company, including:
• Upgrading their exchange listing in the U.S. from the OTC Pink Sheets to the OTCQB;
• increased the Company’s potential hashrate capacity to 3EH through the acquisition of
a 60MW power plant in Upstate New York • repaid all debt in the aggregate amount
of $3,975,000; • increased the Company’s balance of Bitcoins
mined and held by 105.26 during the first quarter of 2021, and to a total balance of
309 Bitcoins with a market value of approximately $17,600,000 as of the end of April.
They are extremely excited about the potential for the remainder of the year Having recently
raised a significant amount of capital, combined with their inventory of 309 bitcoins.
They now have sufficient liquidity to allow them to capitalize on opportunities that would
significantly expand their Bitcoin mining operations through the acquisition of new
miners and the continued growth of their hashing capabilities.”
Their Fiscal Year 2020 Highlights include Revenue from digital currency mining at $3.55
million with a total Comprehensive loss of $3.09 million for the year.
The Bitcoin balance as at April 30, 2021 was 309 Bitcoin having deployed an additional
700 BTC miners, which will aid in furthering their goal of continuously increasing the
level of BTC mined by the Company and providing growth and value for shareholders.
They are also looking to continue exploring every opportunity to expand their BTC mining
operations through the acquisition of new miners, vertical integration, improved operational
efficiencies, and ensuring that the Company is always in a position to attract the financial
resources.
So a decent outlook on this stock.
So if you want to invest in this stock, you want to strike in at a price which you like
and that works for you.
So I’ll start by cost averaging in with a stop loss ideally in the range of 5 – 10%.
The share price seems to be on a slow decline which is good but I don’t think it has bottomed
out yet.
So my strike price is in the range of $1.15 – $1.19.
So if there’s any pull back lower than $1.2 then that would be a good entry point for
the long term.
So if we introduce some other comparables to highlight the opportunity with this stock
–DMG Blockchain which we have previously covered on the channel.
We can see how correlated the two stocks are given their singular focus on bitcoin.
Again their share prices are very speculative as they are depended also driven by bitcoin
prices, how much they can mine and how cost effective they can do it for.
So on that basis given the bullish outlook on bitcoin and their strong focus on cost,
and having doubled their mining capacity I believe they can outperform their previous
peak of $4 per share hit in February.
So I would give it a price target of over $12 per share over the medium to long term
which gives it a potential upside opportunity of 10X.
So plenty of upside based their current focus but this highly speculative in my view so
please do your own research..
You need to be aware that this stock is a penny stocks and so is riskier and more volatile,
so just make sure you are planning for any trade accordingly and it falls within your
risk tolerance..
Additional crypto risks for you to be aware of is that this stock only does bitcoin mining
and so it can be more volatile and riskier than some other crypto stocks, so be please
be informed.
This video is not a buy or sell recommendation but is meant to bring some new and exciting
companies to your attention for you to do your own research and due diligence on before
making an investment decision.
As always I love hearing from you guys so let me know your thoughts on this penny stock
in the comments section and what other crypto penny stocks are catching your eyes lately.
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