DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US)
(FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain
and technology company, is pleased to announce the filing of its
3rd Quarter Financials. This news release should be read in
conjunction with the financial statements and MD&A, which are
available at www.sedar.com.
Highlights:
- In May 2020 the Bitcoin halving occurred, leading to lower
bitcoin block rewards for DMG’s mining operations as compared to
the same period in 2019
- Revenue reported for the period Q3 2020 was $1,363,233 with a
comprehensive loss of $532,071, as compared to a loss of $2,552,705
in Q3 2019, a substantial improvement
- Revenues do not reflect the 1,000 MicroBT M30S new miners
energized June 30, 2020
- General expenses, including operations and administrative costs
reduced from $6,665,584 in Q3 2019 to $2,258,593 in Q3 2020
representing a reduction of 66%
- Consulting and Forensics revenues of $345,793 in the last three
quarters
DMG’s CEO Dan Reitzik commented, “The past 18
months may have been challenging in the crypto-mining industry due
to a significant drop in bitcoin price beginning in December 2017,
increased network hashrate, and a reduction in capital investment.
However, DMG primarily invested in the infrastructure in our
Christina Lake facility, one of the largest in North America, and
with bitcoin prices rising again, the future looks bright. Our
revenues have traditionally come from hosting third party clients
from around the world, but earlier in 2020, based on the increasing
bitcoin price and availability of new mining technologies, the
Company made the decision to begin upgrading DMG’s self-mining
fleet, and to date have added approximately 112 PH comprised of
1242 MicroBT M30S miners and a variety of other miners. The
Company’s goal for self-mining remains at 500 PH by the end of
2020, and we hope to achieve this milestone, which would make DMG
one of the largest bitcoin mining companies by PH in the world.
Manufacturing supply issues, however, and access to favourable
financing options, may impede this goal.
DMG continues to work towards its goal of being
a diversified crypto and blockchain company and will provide
updates to its shareholders shortly on the Wazabi Project, a supply
chain platform for the regulated products industry. DMG’s forensic
division is growing rapidly and recently completed its sixth
consulting project of the year, with many more planned for the next
six months. Blockseer and Walletscore continue to be important
tools for the Company’s forensics work, and are also a key
component for DMG’s comprehensive mining software platform, also to
be detailed shortly.
DMG is currently exploring multiple acquisition
opportunities specifically related to additional low-cost mining
operations, mining software products and new mining technologies.
We are pleased with the Company’s current operations and are
excited about the future of our increased self-mining capacity and
significant technology advances”.
DMG’s COO, Sheldon Bennett, reports, “Bringing
our operational costs, especially G&A, down significantly from
the previous period has positioned the Company to take advantage of
increasing crypto prices.”
The Company will soon announce an investor
conference call to provide detailed update on the Company’s
operations, challenges and plans moving forward.
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
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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