VANCOUVER, British Columbia, Oct. 28, 2024 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) ("DMG"), a leading vertically integrated blockchain and data center technology company, has announced its acquisition of Reactor.xyz ("Reactor") from Navier, Inc. ("Navier"), a prominent provider of bespoke data center deployments specializing in digital asset mining and artificial intelligence (AI).
Reactor is a highly-optimized solution to automate and manage hashrate contracts. Specifically unique to the software, for which there are several patent applications, is its balancing algorithm that assures hashrate delivery. A hashrate contract allows Bitcoin miners - who typically sell hashrate directly to a pool - to sell their hashrate to buyers willing to pay upfront for a specified term. These buyers are often incentivized by a discount compared to what the sellers would typically earn in bitcoin payouts over the contract period. For sellers, this arrangement provides faster access to payment, serving as a valuable treasury management tool akin to factoring receivables.
Reactor's key enabling technology assures that the hashrate transferred from seller to buyer meets the contract's requirements for the entirety of its term. This technology allows for highly granular hashrate delivery, ranging from 100 TH/s (equivalent to a single older generation Bitcoin mining machine) to over 1 EH/s (equivalent to an industrial mining farm). Having been developed and operating over the past several years, Reactor is a proven solution.
Terra Pool is an ideal platform to significantly expand Reactor's reach. With Terra Pool having the ability to offer a large hashrate supply powered by carbon neutral energy, buyers will have access to a much larger supply than previously available. Furthermore, DMG believes that carbon neutral bitcoin may command a premium, and the same advantage could apply to carbon neutral hashrate. Terra Pool clients would thus have the option to either mine carbon neutral bitcoin or sell carbon neutral hashrate contracts, offering multiple avenues to benefit from participating in a carbon neutral pool.
DMG's CEO, Sheldon Bennett commented, "DMG has made tremendous progress towards creating a holistic, carbon neutral Bitcoin ecosystem. This month alone, we've increased our own hashrate to 1.6 EH/s-up about 50% from the prior month, significantly upgraded the software behind Terra Pool and are on track for Systemic Trust to become a fully qualified custodian by the end of the calendar year or early in the new year. Now with the purchase of Reactor, we've added yet another important component to our ecosystem with the unique capability provided by Reactor."
Navier's CEO, Josh Metnick added, "Reactor is by a wide margin, the most stable, reliable and robust hashrate delivery platform in the world - I would challenge any company in our industry to offer a product that matches Reactor's performance. Our engineers spent years optimizing Reactor, having gained the experience across scores of customer deployments. DMG has been a trusted partner for the past several years, and its acquisition of Reactor's technology and its associated IP provides for efficient, direct delivery of carbon neutral hashrate to buyers without a middleman. We are excited about the possibilities and what the future holds for this technology in the hands of an established self-miner such as DMG."
About Navier
Since 2014, Navier has been ensuring success for our customers through tailor-made services, including engineering design, project management, and collaborative ventures. Navier's expertise is in designing, implementing and operating data centers to ensure scalable, efficient, turnkey solutions for projects in the financial technology, artificial intelligence and alternative asset space.
About Terra Pool
Terra Pool is the world's first carbon neutral Bitcoin mining pool, designed to reward miners with carbon neutral bitcoin. It plays a crucial role in advancing a carbon neutral Bitcoin ecosystem. When integrated with DMG's subsidiary, Systemic Trust, a digital asset custodian, financial institutions and content creators will gain the ability to send Bitcoin in a carbon neutral and regulatory-compliant manner.
About Systemic Trust Company Ltd.
Systemic Trust Company is a special purpose trust company incorporated under the Loan and Trust Corporations Act (Alberta). When STC receives its registration and regulatory approval for operations, it will operate as a standalone, independently capitalized, prudently managed trust company and Qualified Custodian offering digital asset custody services for institutional clients.
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated blockchain and data center technology company that develops, manages, and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company's operations are driven by two strategic pillars: Core and Core+, both unified by DMG's commitment to vertical integration and environmentally responsible practices. DMG's subsidiary Systemic Trust Corporation is focused on custody of digital assets.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on Twitter and subscribe to DMG's YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: 516-222-2560
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include statements regarding DMG's strategies and plans, the potential and benefits of the Reactor technology, Systemic Trust becoming a fully qualified custodian and the expected timelines to achieve that, delivering products that enable the monetization of bitcoin transactions, developing and executing on the Company's products and services, increasing self-mining, the launch of products and services, events, courses of action, and the potential of the Company's technology and operations, among others, are all forward-looking information.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate may materially affect the future performance of DMG's production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hash rate mining difficulty.
Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, market and other conditions, volatility in the trading price of the common shares of the Company, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company's financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG's bitcoins; DMG's relationships with its customers, distributors and business partners; the inability to add more power to DMG's facilities; DMG's ability to successfully define, design and release new products in a timely manner that meet customers' needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements. The securities of DMG are considered highly speculative due to the nature of DMG's business. For further information concerning these and other risks and uncertainties, refer to the Company's filings on www.sedarplus.ca. In addition, DMG's past financial performance may not be a reliable indicator of future performance.
Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, the impact of viruses and diseases on the Company's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG's products, services and blockchain technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, decrease in the price of Bitcoin, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of or statements made by third parties in respect of the matters discussed above.
