Digihost (DGHI) became the first publicly traded crypto miner to offer shareholders the option to get dividend payments in bitcoin (BTC), starting from the third quarter of this year.
The company’s first dividend will be 10% of its net income during the third quarter of 2022. Shareholders will have the option to get paid in either bitcoin or cash, the miner said in a statement on Monday.
The rest of Digihost’s net income will be reinvested to fund future business requirements and opportunities.
“The Board of Directors of Digihost is pleased to announce our decision to become the first public company in the crypto mining space to implement a dividend policy payable in BTC to its shareholders,” said CEO and chairman Michel Amar in the statement.
The decision comes as publicly traded miners are looking to diversify their business model to create additional shareholder value, rather than just holding onto their bitcoins in their balance sheet.
For 2022, the company said it expects an average hashrate of 1.5 exahash per second (EH/s), which is about a 5.5 times increase compared to its 2021 average hashrate. Currently, the miner's hashrate is 1 EH/s and it mines 4.25 bitcoins per day.
The miner also said it mined 186.8 bitcoin in the first quarter, an increase of about 78% from the same time period last year.
At the time of writing, Digihost shares were up over 5% in early trading. Its shares have fallen about 27% this year, while bitcoin fell 3.6%.