DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US)
(FRANKFURT:6AX) (“DMG” or the “Company”), a publicly traded,
vertically integrated blockchain and cryptocurrency technology
company, is pleased to announce the purchase of 2,450 Bitcoin ASIC
miners from Bitmain which is expected to add approximately 245
additional Petahash per second (PH/s) to DMG’s Bitcoin mining
capacity following anticipated installation by the end of August,
2021. Delivery of these miners to DMG’s facility are subject to
change given macro factors including but not limited to shipping
logistics and customs processing.
Once fully installed and operating, DMG
estimates that these miners (Antminer S19J Pro) will have a nine
(9) month payback period which is well within the Company’s stated
12-month return on investment (ROI) strategy for Bitcoin mining
hardware1. Additionally, DMG expects these miners to contribute
positively to the Company’s revenues and cash flow1.
“DMG is capitalizing on the declining mining
equipment prices in Asia by spot purchasing new-generation bitcoin
mining equipment at an approximately 60% lower price than just a
month ago," stated DMG's CEO, Sheldon Bennett. "While it was hard
to resist purchasing Bitcoin miners over the past few months during
their all-time high cost, DMG held strong knowing, from our past
buying experiences, that, although the hardware market remains
extremely active, it is important to secure the appropriate
equipment at the right price to receive optimum value. We believe
this purchase, along with other purchases that DMG is currently
negotiating, will greatly improve our self-mining goals in the near
term."
DMG’s Bitcoin ReserveDMG
currently holds approximately 260 Bitcoins. These newly purchased
miners, once fully operating, are expected to add approximately 50
additional Bitcoin per month.
DMG’s ESG CommitmentTerra Pool,
DMG’s partnership with Argo Blockchain, is planned to be used for
this allotment of Bitcoin miners, which again shows DMG’s
commitment to sustainability sourced power in Bitcoin mining and
adhering to the policies of a Signatory of the Crypto Climate
Accord.
About DMG Blockchain Solutions
Inc.DMG is an environmentally friendly vertically
integrated blockchain and cryptocurrency company that manages,
operates, and develops end-to-end digital solutions to monetize the
blockchain ecosystem. DMG’s sustainable businesses are segmented
into three main divisions: data centre operations, data analytics
and forensics and developing enterprise blockchains. DMG’s
non-polluting data centre operations focus on earning eco-friendly
revenues from block rewards and transaction fees by mining
primarily bitcoin as well as providing hosting services for
industrial mining clients entirely powered by renewable energy.
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 environmentally committed management team
includes seasoned crypto experts, forensic & financial
professionals and blockchain developers with deep relationships
throughout the industry and a strong ecological consciousness.
Difficulty Rate / Hashrate
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. Additionally, all discussions of
metrics assume mining difficulty rates as of July 2021.
On behalf of the Board of
Directors,
Sheldon Bennett, CEO & Director
For further information, please contact:
Email:
investors@dmgblockchain.com
Web: www.dmgblockchain.com
Investor Relations:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, Head of Public Relations CORE IR
julesa@coreir.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 Information
This news release contains forward-looking
information or statements based on current expectations. Statements
about the Company’s installation and operation of additional
Bitcoin miners, acquiring additional Bitcoin mining equipment,
plans and goals to increase petahash (PH), expected increase in
computing power, payback period on Bitcoin miners, revenues, price
of Bitcoin, DMG’s ability to successfully mine digital currency,
plans and intentions, other potential transactions, 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. Future-oriented financial
information and financial outlooks, as with forward-looking
information generally, are, without limitation, based on the
assumptions and subject to the risks and factors set out herein.
DMG’s actual financial position and results of operations may
differ materially from its current expectations.
The securities of DMG are considered highly
speculative due to the nature of DMG’s business. For further
information concerning these and other risks and uncertainties,
refer to the Company’s filings on www.SEDAR.com including
the annual information form for the year ended September 30, 2020,
filed on January 28, 2021.
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,
expansion may not materialize as currently anticipated, or at all,
the digital currency market, the ability to successfully mine
digital currency, revenue may not increase as currently
anticipated, or at all, an inability to predict and counteract the
effects of COVID-19 on the business of the Company, including but
not limited to the effects of COVID-19 on the price of digital
currencies, capital market conditions, restriction on labor and
international travel and supply chains, 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.
1 Company estimates based on internal
projections; subject to operating costs, price of Bitcoin,
network-wide mining difficulty rate, and assumes maximum
operational efficiencies.
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