Digihost Technology Inc. (OTCMKTS: HSSHF) and Bit Digital USA Inc. (NASDAQ: BTBT) saw their stocks surge 15.44% and 25.71%, respectively, after announcing a strategic co-mining agreement.
Digihost to supply BTBT with miners
According to the Agreement’s provisions, the Digihost will supply BTBT with certain premises for the storage and operation of a 20 MW BTC mining system that BTBT will deliver and services to maintain the Premises for two years. The agreement between Digihost and BTBT is expected to result in a 400 PH increase in hash rate between the two companies.
As per the agreement terms, Digihost will provide electricity for the Miners’ operation and administrative services to ensure that the Miners have a 95% uptime. In addition, after paying Digihost a very reasonable price for power, Digihost and BTBT will partake in a profit-sharing plan based on a predetermined distribution formula in exchange for these services. The Miners are slated to arrive and be installed in the fourth quarter of this year.
Digihost partners with Bit Digital
Michael Amar, the Digihost CEO, said that they are excited about this strategic partnership with Bit Digital. Based on current Bitcoin metrics, the arrangement will yield tremendous returns through a 400 PH hash rate increase between companies. Amar said their focus is on mining infrastructure expansion, low–cost vertical integration, strategic partnerships with leading blockchain companies, and geographic diversification in North America to strategically operate in regions where carbon footprints are minimal or non-existent.
BTBT CEO Bryan Bullett said that the strategic partnership with Digihost represents the beginning of the company’s expansion to North America. He said that o offer efficient power access and hosting, the plan is to grow through alliances with hosting providers such as Digihost.