Ault Global Holdings’ Subsidiary BitNile Targets Growth to 20,000 Bitcoin Miners Increasing Total Hash Rate to 2.0 EH/s

November 1, 2021 at 6:30 AM EDT

Company’s Board of Directors Approves up to $140 Million in Future Additional Capital for BitNile’s Expansion

LAS VEGAS--(BUSINESS WIRE)--Nov. 1, 2021-- Ault Global Holdings, Inc. (NYSE American: DPW), a diversified holding company (the “Company”), announced that its subsidiary, BitNile, Inc. (“BitNile”), has increased its target of total Bitcoin miners to 20,000 as the Company’s board of directors approved the use of up to $140 million in future additional capital for expansion. The targeted increase of 16,000 Bitcoin miners would elevate the exahash per second (“EH/s”) total hash rate capacity from 0.4 EH/s, based on the 4,000 S19j Pro model Antminers previously announced, to 2.0 EH/s. The Company plans to purchase and install the additional 16,000 Bitcoin miners over the next 12 months, subject to raising the capital, and anticipates publishing the delivery schedule in the near future. Neither the Company nor BitNile currently have any written contracts or commitments for the additional capital required, and there can be no assurances that the capital will be raised on the timeline the Company anticipates, if at all.

Upon securing the requisite financing and the installation of the 16,000 Bitcoin miners, the Company estimates gross annualized revenues would grow to approximately $275 million with margins, net of power costs, of approximately 89%, based on a market value of Bitcoin at $60,000 and a mining difficulty level of 20 trillion. To further its transparency, the Company is providing the following projected price sensitivity analysis of total Bitcoin mining revenue by BitNile, presuming the acquisition and installation of the additional 16,000 Bitcoin miners:

Price Sensitivity Analysis for 20,000 Bitcoin Miners

Bitcoin Price

   

Gross Bitcoin
Mining Revenue
(Estimate)

   

Bitcoin Mining Revenue,
Net of Power Costs
(Estimate)

$

20,000

   

$

91,800,000

   

$

62,400,000

   

68

%

$

25,000

   

$

114,700,000

   

$

85,300,000

   

74

%

$

30,000

   

$

137,700,000

   

$

108,300,000

   

79

%

$

35,000

   

$

160,600,000

   

$

131,200,000

   

82

%

$

40,000

   

$

183,600,000

   

$

154,200,000

   

84

%

$

45,000

   

$

206,500,000

   

$

177,100,000

   

86

%

$

50,000

   

$

229,500,000

   

$

200,100,000

   

87

%

$

55,000

   

$

252,400,000

   

$

223,000,000

   

88

%

$

60,000

   

$

275,300,000

   

$

246,000,000

   

89

%

$

65,000

   

$

298,300,000

   

$

268,900,000

   

90

%

The Company notes that all estimates and others projection are subject to the Company’s ability to acquire financing on terms acceptable to the Company, if at all, the time period of raising the capital, the availability and actual delivery of Bitcoin miners, the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, sufficient power capacity at the Company’s Michigan data center, and other factors that may impact the results of production or operations.

Mr. Milton “Todd” Ault, III, the Company’s Executive Chairman, said, “With our strong balance sheet, we believe now is the time to leverage our financial position and ownership of a data center to make a significant investment in our Bitcoin mining operations with the goal of increasing shareholder value. The planned allocation of capital to BitNile demonstrates our strong commitment to grow Bitcoin mining at our Michigan data center.” Mr. Ault continued, “We look forward to attending the World Digital Mining Summit 2021 in Dubai hosted by Bitmain and strengthening our relationship with Bitmain and others in attendance. We believe our continued investments in BitNile and the anticipated expansion of digital mining partnerships will be strategic to achieving our goal of becoming one of the top ten publicly-traded Bitcoin mining companies in the United States.”

Recently, the Company provided an update on BitNile, whose mining production of Bitcoin has grown to between $14 million and $15 million on an annualized basis, based on current market conditions. The Company further announced that BitNile will begin bimonthly reporting, starting November 15, 2021, of the number of Bitcoin miners installed and the amount of Bitcoin mined at its Michigan data center. The bimonthly reports will be available at www.BitNile.com.

Starting in November 2021, BitNile expects to receive 300 S19j Pro Antminers per month for the next 10 months in accordance with the previously announced purchase agreement with Bitmain for the expected installation of an additional 3,000 S19j Pro Antminers by the end of August 2022.

For more information on Ault Global Holdings and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company’s public filings with the SEC and press releases available under the Investor Relations section at www.AultGlobal.com or available at www.sec.gov.

About Ault Global Holdings, Inc.

Ault Global Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, the Company owns and operates a data center at which it mines Bitcoin, and provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, automotive, telecommunications, medical/biopharma, and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Global Holdings’ headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.AultGlobal.com.

Forward-Looking Statements

This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.AultGlobal.com.

IR@AultGlobal.com or 1-888-753-2235

Source: Ault Global Holdings