Q: DGHI recently ran from 2$ to $5.70 in a month. Since then it has come right back down to $2.90. Is there something I'm missing in their financials? BTC is still trading near 100k USD. They also have plans for AI.
Any explanation for this price action would be appreciated.
Thank you
Any explanation for this price action would be appreciated.
Thank you
5i Research Answer:
DGHI is quite small at $78M market cap, and microcaps typical have volatile price swings in the best of times. There has been no news in two weeks, after its data centre announcement. But the centre does cost $440M, and will be debt-financed, which adds risks. The shift to AI is interesting, but we would note that both the data centre sector AND bitcoin have seen sharp corrections recently. Thus, DGHI is getting hit on both sides. It is still up 8% YTD, after its big run in mid January. It recently raised about $7M. The overall market has also become more more volatile recently, with inflation and growth concerns coming back, and government policy uncertainty.