DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FSE:
6AX) (“DMG” or the “Company”), a vertically integrated blockchain
and cryptocurrency technology company, announces an investment in
Black Box Manufacturing Inc (Black Box), a Vancouver, BC-based
manufacturing company that specializes in the design and
manufacture of electrical and mechanical enclosures for multiple
industries including crypto mining.
DMG has made a $30K passive investment for a 15%
equity position, with future rights to increase or exit. This
enables DMG access to faster manufacturing lead times, fixed
pricing on projects in addition to free engineering expertise and
design. Combining DMG’s lengthy experience in crypto mining with
Black Box’s custom electrical and mechanical engineering abilities,
the combination offers infrastructure building and end-to-end
services for various crypto mining operations. Components are
manufactured in the Greater Vancouver area primarily for the North
America market.
DMG’s Investment Strategy
This investment empowers DMG to manufacture
almost 100% of its mining infrastructure locally, including its
planned conversion to immersion cooling systems at its 80 MW
Christina Lake data centre. This investment also enables DMG to
supply mining infrastructure to other crypto mining operations
throughout North America and is consistent with DMG’s vertical
integration strategy of monetizing the blockchain ecosystem through
maintaining control of its base level manufacturing needs.
DMG’s initial order is for approximately 450 of
its custom power channels. These additional power channels create
10,800 spaces for the newest generation ASIC bitcoin miners. DMG
will also be ordering up to 15 forty-foot containers to be
manufactured following DMG’s one megawatt air cooled crypto mining
container design. Following this order DMG will focus on immersion
cooling retrofitting orders, as well as client orders for crypto
equipment, most of which are expected to be crypto mining
containers. Once DMG’s engineering and related supply chain order
fulfillments are completed, Black Box will also lead DMG’s planned
solar panel deployment at its 80 MW Christina Lake facility.
“By direct investment in a local Vancouver
manufacturing company, DMG will be able to execute more efficiently
on its robust growth plans, confident that it can rely on Black Box
to not only manufacture, but also to project manage, design and
install,” commented Sheldon Bennett, DMG’s CEO. “This new
partnership is key to our growth strategy as we are looking to add
more crypto mining locations - especially with the new uptake in
requests for assistance coming out of Asia.”
About Black BoxBlack Box
Manufacturing Inc is an industrial manufacturing firm specializing
in prefabricated metal enclosures located in the Greater Vancouver
Regional District, BC. Black Box offers the design and manufacture
of industrial, or people use modular metal buildings and
components. Their typical products include, Crypto Mining
Enclosures and Transformer Skids, Electrical Control and
Distribution enclosures, Process Enclosures, Operator Cabins,
Modified Containers, and Generator sets.
blackboxmfg.ca/
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.
For more information, we encourage you to visit
the DMG website here to learn more about our company. Follow
@dmgblockchain on Twitter and subscribe to DMG's YouTube
channel.
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.
On behalf of the Board of Directors,Sheldon
Bennett, CEO & Director
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 based on current expectations. Forward-looking
statements contained in this news release include statements
regarding the expectations of the relationships and integration
with Black Box Manufacturing Inc (Black Box) and the benefits
therefrom, the development of its Core strategy, the ability to
enter the market sooner than anticipated with certain products and
services, 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, market and other conditions,
volatility in the trading price of the Common Shares, 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.
All information in this new release concerning
Black Box Manufacturing Inc (Black Box) has been provided for
inclusion herein by Black Box Manufacturing Inc (Black Box).
Although DMG has no knowledge that would indicate that any
information contained herein concerning Black Box Manufacturing Inc
(Black Box) is untrue or incomplete, DMG assumes no responsibility
for the accuracy or completeness of any such information.
For further information, please contact:
DMG Blockchain Solutions Inc.
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
Investor Relations:
CORE IR 516-222-2560
Media Inquiries:
Jules Abraham CORE IR
julesa@coreir.com
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