VANCOUVER, British Columbia, Nov. 20, 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, announces the expansion of its mining operations with the purchase of Bitmain hydro miners for a total of 5 megawatts of hydro mining containers. These advanced hydro miners, which boast an efficiency of 15 J/TH at a cost of $15/TH/s, represent an investment of approximately US$5 million.
This latest acquisition builds on the Company's earlier purchase of 1 megawatt of hydro miners, further enhancing DMG's operational efficiency and hashrate. The first tranche of 1 megawatt of hydro miners and six 1-megawatt containers is expected to be installed by the end of December 2024 or shortly thereafter. Following this, the newly ordered 5 megawatts of hydro miners are anticipated to be installed by the end of February 2025. Combined, these installations are projected to add 0.4 EH/s to DMG's hashrate, bringing the Company's total hashrate to 2.1 EH/s with a fleet efficiency of 21 J/TH early in calendar 2025. The additional hashrate is subject to the receipt, installation and operation of these additional miners.
In addition to expanding its mining operations, DMG is leveraging its recent fundraising success, which added $16 million to the Company's cash reserves. Approximately $7 million of this capital has been allocated to the purchase of critical mining equipment. The Company is also considering further capital deployment to expand its mining capacity, make additional investments into Systemic Trust-DMG's subsidiary focused on custody of digital assets-and initiate investments in AI infrastructure. These AI-related investments align with the Company's signed MOU which is under negotiation to a full Joint Venture with the Malahat Nation, highlighting DMG's commitment to innovation and strategic growth.
Sheldon Bennett, CEO of DMG Blockchain Solutions, commented: "With our recent fundraising that added $16 million to DMG's cash balance, we have immediately allocated approximately $7 million for the purchase of capital equipment to grow our business. We continue to seek the most effective ways to deploy this new capital to maximize return for shareholders, including meeting the financial commitments required to move Systemic Trust from 'Letters Patent' to become fully qualified as a Canadian trust company. Additionally, as we are encouraged by the recent bitcoin price rally, having a strong cash balance gives us the flexibility to accumulate bitcoin while also making strategic investments to grow our hashrate, support the growth of our Core+ strategy, and make meaningful progress towards deploying next-generation AI compute infrastructure."
DMG Management at Industry Conferences
DMG management will attend the 13th Annual ROTH Technology Conference on November 19-20, 2024, in New York, and the North American Blockchain Summit on November 20-21, 2024, in Dallas, Texas.
About ROTH Technology Conference
The 13th Annual ROTH Technology Conference, taking place in New York City on November 19-20, 2024, is a premier event bringing together innovative technology companies and investors. This invitation-only conference focuses on showcasing growth-oriented tech enterprises through one-on-one meetings, group presentations, and networking opportunities.
About North American Blockchain Summit
The North American Blockchain Summit, hosted in Dallas, Texas, from November 20-21, 2024, is a leading conference spotlighting the transformative potential of blockchain technology. Organized by the Texas Blockchain Council, this summit gathers policymakers, industry leaders, and innovators to explore advancements in blockchain adoption across diverse sectors.
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 presenting at upcoming conferences, DMG's strategies and plans, the expectation and plan to grow its hashrate, the receipt of additional miners and containers and the expected timelines, the potential purchase of additional miners and bitcoin, the potential and benefits of Systemic Trust, deploying next-generation AI compute infrastructure, 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.
