Digihost Technology Inc (OTCMKTS:HSSHF) stock opened higher in the morning session on Thursday after the news. The stock has been witnessing a nice uptrend since over the past month with a jump of around 13%. Will the Rally continue?

Major Trigger:

Digihost Announces Strategic Collaboration With Bit Digital to Increase Combined Hashrates by 400 PH

Key Highlights:

• announce that the Company has entered into a strategic co-mining agreement (the “Agreement”) with Bit Digital USA, Inc. (“BTBT”) (Nasdaq: BTBT). Pursuant to the terms of the Agreement, the Company will provide certain premises (the “Premises”) to BTBT for the purpose of the operation and storage of a 20 MW Bitcoin mining system (the “Miners”) to be delivered by BTBT, and the Company will also provide services to maintain the Premises for a term of two years.
• The collaboration between Digihost and BTBT is expected to generate an increase in hashrate of approximately 400 PH between the companies.
• Under the terms of the Agreement, Digihost will provide power for the operation of the Miners and will also provide management services necessary to maintain 95% uptime on the Miners.
•  In consideration for these services, after paying Digihost a very competitive rate for power, Digihost and BTBT will participate in a profit sharing arrangement based on a fixed distribution formula. It is expected that the Miners will be delivered and installed during the fourth quarter of this year.

Key Quote:

Michel Amar, the Company’s CEO, stated: “We are extremely pleased by this strategic collaboration with Bit Digital which, based on current Bitcoin metrics, is expected to deliver significant results through the increase in hashrate of 400 PH between the two companies. Our business strategy continues to be growth through the expansion of our mining infrastructure, vertical integration of low-cost and green sources of energy, strategic partnerships with leading companies in the blockchain sector, and geographic diversification in North America to strategically operate our business in regions where minimal or no carbon footprint is generated.”

Market Reaction

At the opening session, HSSHF stock jumped by 3% to $1.55 with more than 20K shares traded hands, compared to its average volume of 535K shares. Over the past year, the stock has moved within a range of $0.4380 – 4.7500.