Digihost Technology Inc. (Nasdaq: DGHI) has seen a significant boost in its stock price following the release of an update regarding its power plant acquisition. As of the latest trading session, the company’s shares had climbed by 7.46% and were trading at $1.92.
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What has DGHI provided as an update?
Digihost (DGHI) recently gave an update on its acquisition of a 60 MW power plant in North Tonawanda, NY (NT). The acquisition has received all necessary regulatory approvals, including the Federal Energy Regulatory Commission and New York Public Service Commission. Closing documentation with the vendors is being finalized and the acquisition is expected to close within the next 30 days.
The drop in natural gas prices starting in Q3 2022 will result in reduced costs for DGHI’s blockchain data center network. The company expects the power plant to consistently supply electricity to meet customer demands during extreme weather and operate as a peaker plant. The acquisition of the NT power plant is projected to increase DGHI’s computing power to 2.0 EH and broaden its portfolio of blockchain network infrastructure, including locations in New York, Alabama, and North Carolina.
Digihost has been notified of a legal challenge by the Sierra Club and Clean Air Coalition of Western New York against the approval of the NT power plant sale by the PSC. The company believes the challenge will not impact the acquisition’s closing as it believes the PSC followed proper procedures in granting approval. Updates will be provided as more information becomes available.
In what way will the DGHI proceed?
Upon completion of the acquisition, the power plant will increase Digihost’s (DGHI) computing capacity to 1.3 EH, with an initial power generation rate of 50 MW. DGHI will immediately benefit from the increased capacity, as its digital asset infrastructure has been pre-engineered and set up adjacent to the plant. The acquisition represents a significant step forward for DGHI’s growth as a leading player in the digital asset infrastructure sector.
