Digihost Completes Controversial Power Plant Acquisition Despite A Legal Challenge

Key Points:

• By the end of the month, according to the company’s announcement, Digihost anticipates closing on the Fortistar natural gas facility on Erie Avenue.
• Both the New York Public Service Commission and the Federal Energy Regulatory Commission have given their approval to the transaction.
• The mining operation for Digihost, which has already been set up on a neighboring land, will be powered by the 60-megawatt facility.

Bitcoin mining company Digihost announced it had finished the purchase of a natural gas power facility in North Tonawanda over two years after initially declaring its intention to do so.

By the end of the month, Toronto-based Digihost Technology Inc. anticipates closing on the Fortistar natural gas facility on Erie Avenue.

According to CEO Michel Amar, the Toronto-based company avoided taking on debt and diluting the stock of current shareholders by paying for the facility with cash. The business announced in March 2021 that it would pay $4.25 million in cash and equity. By the time of publishing, it still hadn’t replied to inquiries on the final pricing.

Both the New York Public Service Commission and the Federal Energy Regulatory Commission have given their approval to the transaction.

The Sierra Club and the Clean Air Coalition of Western New York have filed a lawsuit against the PSC’s decision.

Digihost may better manage its energy expenses and sell power to the grid during periods of high demand by procuring a power-producing asset. However, the changing cost of natural gas will affect input costs.

The mining operation for Digihost, which has already been set up on a neighboring land, will be powered by the 60-megawatt facility. The Tonawanda operation would more than increase Digihost’s overall capacity, according to the company’s release. The business currently has mining sites in numerous states, including one at the American Axle plant in Buffalo.

In 2022, Digihost mined 832 Bitcoins, which are now worth nearly $19 million.

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