Bit Digital Inc. shares were up 30% to $5.52 after the company said it and Digihost Technology Inc. have entered into a second strategic co-mining agreement where Digihost will provide certain premises to Bit Digital for the operation of a 100 megawatt bitcoin-mining system for a term of two years.
Volume for the stock was 26.3 million shares at 12:25 p.m. ET, compared to its 65-day average volume of 2.2 million shares. The stock hit its 52-week high of $33 on Jan. 4.
Bit Digital said the expanded collaboration is expected to enable an additional increase in hashrate of 2 exahashes between the companies, and a total increase in hashrate between the two companies of 2.4 EH including the initial collaboration agreement that was previously reported June 10.
Digihost would provide power and management services for the operation of the miners. In consideration for these services, after paying Digihost a competitive rate for power, Digihost and Bit Digital would participate in a profit-sharing arrangement based on a fixed distribution formula. It is expected that the miners would be delivered and installed beginning in January 2022.