DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US)
(FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated
blockchain and cryptocurrency technology company, is pleased with
the progress of its extensive long-term immersion cooling
feasibility study, allowing the Company to proceed with needed
preparations for large-scale deployment in 2021. Immersion cooling
will enable DMG to grow its operations in a sustainable way, as
well as to reinforce its leadership in the area of
innovation-driven Bitcoin mining.
DMG is developing its proprietary immersion
cooling system which, compared to more conventional air-cooled
mining rigs commonly used by most crypto mining companies, will add
significant operations gains at a lower capital expenditure. Prior
industry research and discussion with immersion providers and
industry vendors have shown a minimum hashrate increase of 30% for
crypto servers along with a decreased overall power consumption per
hashrate of up to 10%, which constitutes significant cost saving
potential for DMG’s operations. This, combined with lower capital
expenditures, significantly lowers ROI time per megawatt of
deployed mining, by up to 25%.
DMG's existing Christina Lake substation is
rated for 85MW, of which 60MW in transformers and other required
high and middle voltage electrical equipment have already been
fully installed. DMG’s facility has a Bitcoin mining capacity of
2.0 EH/s (exahash) of mining using air-cooled systems, and with
immersion we expect a 30% increase in hashrate per miner, and
therefore bitcoin as well.
DMG has invested in its immersion cooling
testing in order to increase both the amount of hashrate its
facility can generate as well as to develop a technology which is
designed to work with any miners, so the Company does not become
reliant on any single manufacturer. DMG is now preparing for the
retrofitting of air-cooled infrastructure to immersion cooling in
one megawatt increments. Through this process, existing mining will
continue with minimal to no downtime, thus not affecting our
operations or clients.
“Through the use of immersion cooling, we
believe we can obtain a 30% uplift on the labelled hashrate on any
piece of mining equipment, or up to 130 TH/s from a standard 100
TH/s miner,” said DMG’s CTO, Adrian Glover. “The long-term future
of DMG’s strategy is to run everything possible in immersion. After
a short amortization period, our marginal additional infrastructure
investment in the form of tanks, dry coolers, pumps, fluid, etc.,
will create significant gains for DMG and create a competitive
advantage beyond what air-cooling can achieve.”
The Company has sufficient funds on hand (for 30
megawatts) to complete the initial first phase of retrofitting of
the facility. Future changes in the network-wide mining difficulty
rate or Bitcoin hashrate may also materially affect the future
performance of DMG’s production of Bitcoin. Future results could be
materially affected by the price of Bitcoin and an increase in
hashrate mining difficulty.
DMG also announces that Sheldon Bennett, DMG’s
Chief Operating Officer, is participating in an expert panel along
with Hive and Hut8, discussing its mining technologies at
Canaccord's Digital Assets Symposium today at 12:00 noon EST.
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:
DMG Blockchain Solutions Inc.Email:
investors@dmgblockchain.com Web: www.dmgblockchain.com
Cautionary Note Regarding
Forward-Looking Information
This news release contains forward-looking
information based on current expectations. Statements about the
Company’s plans for the expected benefits of immersion cooling
systems including increase in hashrate and cost savings, completion
of the retrofitting of the facility, 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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