Marathon Patent Group Inc. (NASDAQ: MARA), (“Marathon”) and DMG
Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF: OTC US) (FRANKFURT:
6AX) (“DMG”) have entered into a non-binding memorandum of
understanding to form Digital Currency Miners of North America
(“DCMNA”), which will be a U.S.-based non-profit entity whose
mission is to create a better mining environment for North American
miners, to help improve their financial performance, and to create
North America’s first cooperative mining pool.
Marathon Patent Group and DMG’s U.S. subsidiary,
Blockseer, are working together to establish DCMNA, a non-profit
entity focused on North American digital currency opportunities,
including decentralizing the Bitcoin hashrate and providing more
transparency for North American miners. DCMNA’s principal
initiative is to create North America’s first cooperative mining
pool by licensing Blockseer’s mining pool to all DCMNA members in a
cooperative structure. Mining partners who are members will receive
rebates based on the hash rate they contribute to the overall pool,
thus improving the mining profitability of DCMNA members.
As a founding member of DCMNA and one of North
America’s largest enterprise Bitcoin mining companies, Marathon
will put all of its mining hashrate (equivalent to 10.36 EH/s, or
7.6% of the total Bitcoin network’s hashrate, if all miners were
deployed today at current levels) into the pool.
Benefits of the mining pool include, but are not
limited to:
- Profit sharing, whereby miners
receive rebates based on their contributed hashrate
- Increased transparency as all
financial information will be audited by a third-party U.S.-based
financial audit firm
- Lobbying efforts to improve the
policies and regulatory environment in North America for
miners
- “Clean block mining” that adheres
to the Office of Foreign Asset Control’s (OFAC’s) compliance
standards and reduces the risk of mining blocks that include
transactions linked to nefarious activities
DCMNA is focused on increasing transparency,
trust, and accountability in the emerging mining industry,
particularly as more institutions embrace Bitcoin as a store of
value. Unlike other Bitcoin mining pools, Blockseer’s pool will be
audited by an independent auditing firm, ensuring that the miners
receive accurate rewards and that auditors and regulators can trust
the data provided. Using DMG’s proprietary patent pending
technologies, the pool will also create transaction blocks that
specifically omit any transactions deemed risky by Walletscore, and
which may not meet OFAC standards. As a result, North American
miners who are DCMNA members will reduce the risk of the blocks
they mine containing transactions tied to criminal or
terrorist-related activities.
DCMNA will also act as unified group to lobby
government bodies and regulators on behalf of its membership. The
organization will be governed by its mining members, while
Marathon’s executive chairman, Merrick Okamoto, will serve as
DCMNA’s inaugural chairman. A membership committee will also be
formed to develop and regulate DCMNA’s operations and investments
in North American digital currency mining issues, which will be
identified by its membership.
“We are tremendously proud to lead the launch of
DCMNA, a non-profit organization, whose first mandate is to bring
its members a vast improvement in mining pool operations by
licensing the Blockseer pool to serve our North American mining
members,” said Marathon’s executive chairman, Merrick Okamoto. “To
date, companies such as ours have relied on pools primarily based
in Asia to connect to the Bitcoin network, and we have been
frustrated by the lack of transparency and audited data. Marathon
has been a leader both in terms of market capitalization and also
in terms of lobbying regulators on behalf of our industry, and we
look forward to working diligently to build the capabilities of
DCMNA on behalf of our mining partners and DCMNA’s new
members.”
Dan Reitzik, DMG’s CEO added, “It is an honor to
work with Marathon to establish the DCMNA and to provide the
technological components for the DCMNA organization. When DMG
acquired Datient, the parent of Blockseer in 2018, our intention
was to create solutions that would benefit our industry as a whole
and increase trust in the Bitcoin ecosystem. Mining is a unique
industry, in that miners do not necessarily compete with one
another for customers or contracts, but instead work together to
secure the blockchain on which Bitcoin transactions are processed.
It simply makes sense to amalgamate North American miners toward
common goals, and the Blockseer pool is the ideal way in which to
lead this process in a safe, transparent, and compliant way.”
Terms of the memorandum of understanding include
DMG licensing Blockseer’s technology and associated intellectual
property to DCMNA, as well as the management of pool operations.
Upon completion of a definitive agreement, detailed terms and
conditions will be provided in an upcoming news release. Pool
operations are expected to commence shortly after entering into a
definitive agreement.
About Marathon Patent
GroupMarathon is a digital asset technology company that
mines cryptocurrencies, with a focus on the blockchain ecosystem
and the generation of digital assets.
About DMG Blockchain Solutions
Inc.DMG is a vertically integrated blockchain and
cryptocurrency company that manages, operates, and develops
end-to-end digital solutions to monetize the blockchain ecosystem.
DMG’s businesses are segmented into three main divisions: data
centre operations, data analytics and forensics and developing
enterprise blockchains. DMG’s data centre operations focus on
earning revenues from block rewards and transaction fees by mining
primarily bitcoin as well as providing hosting services for
industrial mining clients. DMG’s data analytics and forensic
services provide technical expertise software products such as
Blockseer Pool, Mine Manager and Walletscore, as well as working
with auditors, law firms, and law enforcement organizations. DMG’s
permissioned blockchain technology is focused on developing
enterprise software for the supply chain management of controlled
products. DMG’s strategy is to become the domain experts across the
business verticals it focuses on. DMG’s management team includes
seasoned crypto experts, forensic & financial professionals and
blockchain developers with deep relationships throughout the
industry.
For more information on DMG Blockchain Solutions
visit: www.dmgblockchain.com
On behalf of the Board of Directors,Daniel
Reitzik, CEO & Director
For further information, please contact:
Marathon Patent Group Company
Contact:Jason AssadTelephone: 678-570-6791Email:
Jason@marathonpg.com
Marathon Patent Group Investor
Contact:Gateway Investor RelationsMatt Glover and Charlie
SchumacherTelephone: 949-574-3860Email: MARA@gatewayir.com
DMG Blockchain Solutions
Inc.Email: investors@dmgblockchain.comWeb:
www.dmgblockchain.com
Cautionary Note Regarding
Forward-Looking InformationThis news release contains
forward-looking information based on current expectations.
Statements about the Company’s plans for the potential
establishment of this new DCMNA pool and definitive agreement, to
increase petahash (PH) by self-mining, price of bitcoin, plans and
intentions, other potential transactions, acquisition of customers,
product development, events, courses of action, and the potential
of the Company’s technology and operations, among others, are all
forward-looking information. 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, 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.
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 Covid-19 or other 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,
increase in operating costs, increase in equipment and labor costs,
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.
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.
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