DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US)
(FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain
and technology company, has completed its sixth large crypto
forensic consulting project of 2020, generating approximately
$350,000 in additional revenue.
Forensic Highlights:
- $350,000 in consulting revenue
generated in 2020 from forensic engagements
- DMG has provided technical reports,
investigations and due diligence for law firms and professional
audit and accounting firms focused on other publicly traded crypto
companies, private companies and Initial Coin Offerings “ICOs”
- DMG’s investigators use DMG’s
Blockseer and Walletscore software to provide accurate crypto
tracking and labelling as well as forensic consulting services
- DMG’s crypto audit and forensic
division is expecting revenue to continue to grow in the coming
financial year
While DMG’s primary business is bitcoin mining,
as a diversified blockchain company, other revenue streams are
continuously being developed. DMG acquired Datient, Inc. in early
2018 specifically for its Blockseer software, which at the time was
primarily used by law enforcement. Since this acquisition DMG has
continued to improve Blockseer and has also launched Walletscore, a
risk assessment AML tool. DMG sells software licenses for these
products but also uses them internally to provide crypto analytics
and forensic consulting primarily for law, accounting, and audit
firms.
DMG has traditionally grown this business
through partnerships with professional services firms with whom DMG
already has relationships; however, as DMG is looking to continue
to grow this business, it is increasing business-to-business
marketing efforts. Looking at DMG’s deep expertise in
cryptocurrency mining, and data science, we are well poised to
expand our crypto consulting practice into the Artificial
Intelligence (“AI”) space. Cryptocurrency mining with ASICs and
GPUs has similarities to AI processing, and working with our
partners in this space, we are beginning consultations on technical
questions our business partners have regarding AI companies.
DMG is often asked to provide a technical review
of the completeness and reliability of revenue for cryptocurrency
miners. Challenges include the newness of this industry, and crypto
mining pools that don’t provide complete reporting or completely
transparent data that third parties can professionally rely upon.
As existing mining pools don’t have the level of transparency and
trust needed by North American companies for good governance and
independent audit needs, this presents an opportunity for DMG to
assist these firms in ensuring that financial reporting is complete
and accurate. DMG’s upcoming pool will solve many of these problems
for miners using DMG’s pool, compared to others. Our goal is to
provide a publicly audited pool, which is truly based in North
America and provides reporting that meets today’s compliance needs
required by independent third parties and companies seeking a high
level of governance and compliance.
DMG’s COO Sheldon Bennett, a Certified Fraud
Examiner, leads the forensic division for the Company and provides
the following comments, “We recently completed a multi-phased
investigation for one of the world’s leading law firms with more
than $3B in annual revenue, 36 offices in 23 countries. This
particular client is one of the world’s ten largest law firms, as
measured by the number of lawyers and revenue. While we can’t get
into specifics of the forensic work, we see tremendous opportunity
for DMG’s crypto forensic consulting services as allegations of
fraud and theft continue to emerge from the recent ICO activity
globally. The Company’s forensic revenue may currently be dwarfed
by our crypto-mining revenue, but as a diversified company we are
excited to see the rapid growth of this division."
About DMG Blockchain Solutions
Inc.
DMG is a diversified cryptocurrency and
blockchain platform company that is focused on the two primary
opportunities in the sector – mining public blockchains and
applying permissioned blockchain technology. DMG focuses on mining
bitcoin, providing hosting services for industrial mining clients,
earning revenues from block rewards and transaction fees,
developing data analytics and forensic software products, working
with auditors, law firms, and law enforcement to provide technical
expertise. 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, with previous experience working at
Bitfury, PwC, EY, Cisco and UBS.
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:
DMG Blockchain Solutions
Inc.
Investor Relations: John MartinToll Free:
1-888-702-0258Email: investors@dmgblockchain.comWeb:
www.dmgblockchain.comDirect: 778-868-6470
Cautionary Note Regarding
Forward-Looking Information
This news release contains forward-looking
information based on current expectations. Statements about the
Company’s plans 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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