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 the purchase and
immediate operation of 2,915 bitcoin ASIC miners, which is an
additional approximate 200 PH/s, with a possibility of 2,500 more
ASIC miners from the same supplier (totalling an additional 170
PH/s).
As previously announced, DMG is in the process
of retrofitting the first 30 MW of infrastructure to immersion
cooling (which can produce approximately 1.0 EH/s of Bitcoin
mining), to be completed in the first half of 2021 with another 30
MW to follow in the second half-year (totaling 2.0 EH/s).
DMG is currently in negotiations with other
leading Bitcoin mining equipment manufacturers for further purchase
orders in accordance with its retrofitting efforts, which would
allow additional purchases through the rest of 2021 to meet the
Company’s hashrate targets.
“DMG’s goal is to provide thought leadership to
the cryptocurrency industry, which is why we are focussed on
strategies around vertical integration, governance, compliance, and
efficiency; hence, our focus on physical technologies such as
immersion cooling, along with software technologies found in our
Blockseer platforms,” said DMG’s COO, Sheldon Bennett. “DMG has
leveraged its long-time industry contacts to find supply in a hot
market when, along with the 2,915 miners we have secured, we have a
right of first refusal on an additional 2,500 miners from the same
supplier.”
As DMG secures further orders to fully occupy
its 85MW flagship facility, the Company will explore the idea of
multiple other Bitcoin mining sites to allow for additional
hashrate growth in 2022 over and above the previously announced
2021 target of 2.0 EH/s.
Beyond the growth of DMG’s cryptocurrency mining
footprint, the Company is also continuing to grow its software
stack (including clean block mining on the Blockseer Pool),
automated management of its mining assets with Blockseer Mine
Manager, and tool sets for AML and KYC in Walletscore. Further, the
Company seeks to expand into cryptocurrency transactions and
integration with traditional financial institutions and
crypto-focused exchanges.
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
917-885-7378julesa@coreir.com
Investor Relations
Contact:CORE IR 516-222-2560Neither 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 Information
This news release contains forward-looking
information or statements based on current expectations. Statements
about the Company’s plans for the acquisition of additional Bitcoin
miners, plans and goals to increase petahash (PH) by self-mining,
completion of retrofitting of the facility, acquiring other
facilities, 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,
decrease in the price of Bitcoin and other cryptocurrencies,
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.
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