DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US)
(FRANKFURT:6AX) (“
DMG” or the
“
Company”), a vertically integrated blockchain and
cryptocurrency technology company, today announces that its Board
of Directors has approved, along with its self-mining, to
incorporate a Bitcoin accumulation strategy to significantly
increase the Company’s Bitcoin (“BTC”) treasury holdings. After
watching for buying opportunities in the market over the last few
days and weeks, DMG has started to implement this plan by executing
Bitcoin purchases in the amount of roughly 220 BTC since Monday
afternoon through customary cryptocurrency exchanges and direct
over-the-counter (“OTC”) trades. DMG intends to periodically
purchase BTC, based on market conditions, trends and corporate
opportunities.
Over the long term, DMG intends to increase its
Bitcoin treasury by mining and holding it. In addition, the Company
will, from time to time, acquire Bitcoin through a direct
investment model such as using funds which are budgeted for later
capital deployments. This will allow DMG to use Bitcoin as an ideal
store of value, and also as a means to transact, as needed.
“Buying Bitcoin helps to efficiently diversify
DMG’s monetary holdings away from cash, and over time we intend to
make BTC our treasury currency of choice,” said DMG’s COO, Sheldon
Bennett. "We are well connected in this industry and therefore know
that many more companies will shortly begin to add Bitcoin to their
balance sheets as a hedge against the ongoing dilution and
inflation. We believe this will contribute to an even stronger
Bitcoin price in the coming weeks and months, from which DMG is
positioned to significantly benefit.”
Moving forward, DMG will continue to implement
its two-fold business strategy: to grow the corporate blockchain
businesses in all of its three divisions (including but not limited
to Bitcoin mining and Bitcoin pool management), and to hold
newly-mined Bitcoin rewards and acquire additional Bitcoin as a
treasury reserve asset, when possible.
“Just as an individual or corporate investor
might hold large cash positions, so they might face significant
risk of loss of value due to inflation alone. However, that risk
doesn’t exist with Bitcoin, which is a deflationary asset by
default, with an ever-increasing demand for this superior
cryptocurrency. This demand is mainly driven by rapidly growing
institutional adoption and an increasingly large demand by retail
investors. Coupled with a drastically declining supply of new
coins, ultimately, we expect continuously rising Bitcoin prices,
which is exactly what we’ve been witnessing in the last few months.
We believe Bitcoin has and will continue to have greater value than
traditional currencies such as the US dollar,” added DMG’s CEO,
Daniel Reitzik.
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.
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.
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
For Media Inquiries:Jules
Abraham, Head of Public RelationsCORE IR jabraham@coreir.com
Investor Relations
Contact:CORE IR 516-222-2560
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 or statements” based on current
expectations. Statements about the Company’s plans for purchasing
Bitcoin, mining and holding Bitcoin, the expected price of Bitcoin,
growing the corporate blockchain businesses, 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, decrease in the
price of Bitcoin and other cryptocurrencies, 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.
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