DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US)
(FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated
blockchain and cryptocurrency technology company is pleased to
announce that Ecopwrs LLC ("Ecopwrs") from Wyoming, USA has
selected DMG to lead the development and management of its Bitcoin
mining operations in the Permian Basin of the United States.
This initial project will be for 25 MW of flare
gas converted for use in Bitcoin mining. Ecopwrs reduces natural
gas flaring by using gas to generate electric power and operate
Bitcoin mining servers at well sites. This low-cost power improves
margins for Bitcoin mining while reducing carbon emissions at
Ecopwrs’ sites in the Permian Basin of Texas and New Mexico, which
will be developed, in cooperation with DMG, as the exclusive
Bitcoin mining operator.
DMG and Ecopwrs executed a Memorandum of
Understanding (“MOU”) for DMG to develop and manage Ecopwrs'
initial minimum capacity of 25 MW (approximately 400 PH/s) of
containerized crypto mining utilizing flare gas in the Permian
Basin of Texas. DMG will help manufacture, deliver, commission and
manage specialized crypto mining containers in traditional
air-cooled units with plans to upgrade to DMG’s forthcoming
immersion cooling systems at a later point. Pursuant to the MOU,
DMG will also have the right to purchase an initial equity stake of
up to 12.5% in Ecopwrs in order to become a strategic long-term
anchor investor in this new venture.
Furthermore, DMG will operate the entire 25 MW
of Bitcoin mining using its proprietary Mine Manager software, as
well as manage the operation’s hashrate using its Blockseer Bitcoin
mining pool. A separate third party technology partner will supply
the mining hardware for Ecopwrs, which DMG will operate at these
sites.
The initial 25 MW represents the first project
phase, with four more phases identified, which will provide an
additional capacity of 100 MW for DMG to build and operate
(totaling 125 MW). Based on the planned hash rate of third party
equipment, each 25 MW project would represent a minimum hashrate of
approximately 400 PH/s.
“The sites will be powered by recovering and
using wasted natural gas at current gas flaring and gas processing
sites, allowing Ecopwrs to generate electricity for the Bitcoin
mining operations at a very low cost,” said Ecopwrs’ CEO John
Heffernan. “It’s important to note that electricity is the largest
factor determining profitability in Bitcoin mining, and Ecopwrs'
waste gas-based generation will place the production cost for
ourselves and our partner DMG among the lowest of all global
Bitcoin miners.”
The initial phase of Ecopwrs operations will be
deployed across five sites and produce approximately 25 megawatts
of energy for the new Bitcoin mining facility to be operated by
DMG. Ecopwrs expects its first site will be operational within 75 -
120 days from funding and will generate revenue for DMG from day
one of Bitcoin mining operations. Ecopwrs’ overall business plan is
to deploy approximately 25 sites, and DMG will be the exclusive
Bitcoin mining operator for all sites.
Ecopwrs has lined up several energy exploration
and production (“E&P”) companies as customers and partners for
Ecopwrs’ and DMG’s service offering, and their principals’
relationships provide trusted access with an additional 20 E&Ps
in the Permian Basin, laying the groundwork for an even larger
capacity within the next 24 months. These prospective partners have
flare gas mitigation requirements, representing many times the
capacity needed to execute Ecopwrs’ operating plan as agreed in the
MoU with DMG.
“DMG is focused on continuously growing its
Bitcoin mining operations, as we are fully convinced that
cryptocurrencies in general, and Bitcoin in particular, have
tremendous potential for both short- and long-term growth,” said
DMG’s COO, Sheldon Bennett. “DMG is proud to expand its large-scale
Bitcoin mining operations into the U.S. as we continue to create
energy-efficient Bitcoin mining solutions wherever we operate.”
The development of the Bitcoin mining operations
for Ecopwrs is subject to certain conditions including, but not
limited to, Ecopwrs having sufficient funds to complete the
purchase of Bitcoin equipment and infrastructure, securing
contracts from E&P companies, and the execution of a definitive
contract setting forth the specific terms and conditions with DMG.
DMG and Ecopwrs expect COVID-19 to affect the availability and
timing of mining equipment and containers.
DMG also announces that it is working to meet
its self-mining deployment targets at its Canadian 85 MW Christina
Lake facility. Currently the Christina Lake team will be deploying
up to 1,000 miners in the coming weeks in line with infrastructure
upgrades as they come online.
Future changes in the Bitcoin network-wide
mining difficulty rate or Bitcoin hashrate may materially affect
the future performance of DMG’s production of Bitcoin, and future
operational results could also be materially affected by the price
of Bitcoin and an increase in hashrate mining difficulty.
About Ecopwrs LLC
Ecopwrs reduces natural gas flaring by using gas
to generate electric power and operate Bitcoin mining servers at
well sites. This low-cost power enables highly profitable Bitcoin
production while reducing carbon emissions and mitigating other
environmental impacts. Ecopwrs LLC was built from the ground up to
solve these problems in a clever and ground-breaking way, which
will not only help the environment but provide a new low-cost means
for mining Bitcoin. The sites will be powered by recovering and
using wasted natural gas at current gas flaring and gas processing
sites in the Permian Basin of Texas and New Mexico.
Ecopwrs LLCEmail:info@ecopwrs.comWeb:
www.ecopwrs.com
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.comWeb:
www.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 InformationThis news release contains
forward-looking information based on current expectations.
Statements about the Company’s the MoU with Ecopwrs and the
expected developments from that business arrangement and the
related definitive agreement, DMG purchasing an equity stake in
Ecopwrs, DMG's development of immersion cooling systems, DMG's
deployment of additional miners and the increase petahash (PH) by
self-mining, infrastructure upgrades, 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,
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.
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