DMG Blockchain Solutions Inc (DMGGF) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst ...
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
DMG Blockchain Solutions Inc (DMGGF) has completed regulatory approvals to become a qualified digital asset custodian, making it one of only three in Canada.
The company is focused on customer acquisition for its Systemic Trust and aims to onboard its first customers by the June quarter, with a significant revenue ramp-up by the end of the year.
DMG's core plus strategy aims to monetize a carbon-neutral Bitcoin ecosystem, with partnerships and customer acquisition as key focuses.
The company has achieved a realized hash rate of 1.62 X a hash, up 65% sequentially, and plans to reach 2.1 X a hash with improved fleet efficiency.
DMG's cash plus Bitcoin balance increased 62% sequentially to $58.2 million, showcasing strong financial growth.
The company faces uncertainties regarding the future profitability of Bitcoin mining, leading to cautious capital deployment.
DMG's hosting revenue decreased 25% sequentially, and the company expects hosting revenue to decline to near zero as existing customers retire their fleets.
Operating and maintenance costs increased 44% due to a 65% increase in hash rate, impacting overall profitability.
The company is evaluating the cost of energy at a new data center site, which has been significantly higher than expected, affecting project viability.
DMG's stock has been under pressure despite achieving milestones, reflecting broader sector challenges and market uncertainties.
Warning! GuruFocus has detected 2 Warning Signs with DMGGF.
Q: How will the recent 25% tariff from the US impact DMG Blockchain Solutions? A: Sheldon Bennett, CEO, stated that the impact is uncertain as DMG does not heavily rely on US-sourced goods or services. The tariffs might delay plans for US market entry, but it's too early to determine any material impact on the business.
Q: What is the timeline for the AI joint venture with the Malahat Nation to build the 2,150 megawatt sites? A: Sheldon Bennett, CEO, explained that building a new facility on DMG's property could take 1.5 to 2 years, and longer on the Malahat property due to the need for a substation and securing approvals. The acquisition of a 10 megawatt prefabricated data center could accelerate initial deployment.
Q: What is the expected revenue impact of the prefabricated data centers? A: Sheldon Bennett, CEO, mentioned that while it's early to speculate, the prefabricated data centers, being military-grade and SCIF-rated, could potentially generate revenues exceeding current Bitcoin mining revenues.
Q: Does the political environment affect the demand for a carbon-neutral Bitcoin ecosystem? A: Sheldon Bennett, CEO, affirmed that there is still demand, particularly from financial institutions seeking regulatory-compliant and carbon-neutral Bitcoin transactions. The market is moving towards carbon-neutral energy sources, and DMG is providing a choice for those willing to pay a premium.
Q: Has Systemic Trust onboarded any clients? A: Sheldon Bennett, CEO, confirmed that Systemic Trust has onboarded DMG and is in discussions with other potential clients. More information will be shared as they achieve further regulatory approvals and onboard additional clients.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Aion Therapeutic Announces Change of Auditor
Toronto, Ontario--(Newsfile Corp. - June 6, 2025) - Aion Therapeutic Inc. (CSE: AION) ("Aion Therapeutic" or the "Company") announced today that the Company's audit committee and board of directors approved a change in the Company's auditors from DNTW Toronto LLP (the "Former Auditor") to Horizon Assurance LLP (the "Successor Auditor"), effective June 6, 2025. There were no reservations in the Former Auditor's reports for the two most recently completed fiscal years or for any period after the most recently completed period for which an audit report was issued and preceding the date of the Former Auditor's resignation. There are no reportable events, including disagreements, consultations, or unresolved issues as defined in Part 4.11 of National Instrument 51-102 Continuous Disclosure Obligations ("NI 51-102") between the Company and the Former Auditor. The change of auditor notice and associated materials have been filed on the Company's profile on SEDAR+ at About Aion Therapeutic Inc. Aion Therapeutic is a forward-thinking business within the health and wellness sector with a diverse portfolio of intellectual property. With a commitment to innovation and transformative solutions, the Company is poised to drive positive change to redefine the boundaries of health and wellness. Toppen, a wholly-owned subsidiary of Aion Therapeutic, is a US-based innovative health and wellness company dedicated to delivering state-of-the-art water filtration solutions. With a focus on innovation, affordability, and sustainability, Toppen's water filtration solutions are designed to meet the diverse needs of consumers, businesses, and industries around the world as they strive to provide access to clean and safe water. For further information, please contact: Aion Therapeutic SimmondsExecutive Vice Chair & CEO(416) 843-2881 DISCLAIMER & READER ADVISORY This release contains forward-looking information within the meaning of applicable Canadian securities legislation. Expressions such as "anticipates", "expects", "believes", "estimates", "could", "intends", "may", "plans", "predicts", "projects", "will", "would" and other similar expressions, or the negative of these terms, are generally indicative of forward-looking information. Forward looking statements in this press release include statements regarding the completion of the Offering, the timing thereof and the proposed use of proceeds under the Offering. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. In addition, the forward- looking information contained in this release is based upon what management believes to be reasonable assumptions. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain, and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, the Company assumes no obligation to update or revise such information to reflect new events or circumstances. The securities of the Company have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This release is issued for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release. To view the source version of this press release, please visit
Hamilton Spectator
29 minutes ago
- Hamilton Spectator
Digi Power X Announces Grant of Stock Options
This news release constitutes a 'designated news release' for the purposes of the Company's prospectus supplement dated May 30, 2025 to its short form base shelf prospectus dated May 15, 2025. MIAMI, June 06, 2025 (GLOBE NEWSWIRE) — Digi Power X Inc. ('Digi Power X' or the 'Company') (Nasdaq: DGXX / TSXV: DGX), an innovative energy infrastructure company that develops cutting-edge data centers, announces the grant of a total of 1,145,000 stock options (the 'Stock Options') to certain officers, directors, management, key consultants and employees of the Company in accordance with the Company's stock option plan (the 'Plan'). Each Stock Option is exercisable into a subordinate voting share of the Company at a price of C$2.09 for a period of five years from the date of grant. The Stock Options vest fully on the date of grant and are subject to the terms and conditions of the Plan and the policies of the TSX Venture Exchange. About Digi Power X Digi Power X is an innovative energy infrastructure company that develops cutting-edge data centers to drive the expansion of sustainable energy assets. For further information, please contact: Michel Amar, Chief Executive Officer Digi Power X Inc. Investor Relations T: 888-474-9222 Email: IR@ Cautionary Statement Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Statements Except for the statements of historical fact, this news release contains 'forward-looking information' and 'forward-looking statements' (collectively, 'forward-looking information') that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. Forward-looking information in this news release includes information about potential further improvements to profitability and efficiency across the Company's operations, including, as a result of the Company's expansion efforts, potential for the Company's long-term growth and clean energy strategy, and the business goals and objectives of the Company. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: future capital needs and uncertainty of additional financing; share dilution resulting from equity issuances; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; effects on Bitcoin prices as a result of the most recent Bitcoin halving; development of additional facilities and installation of infrastructure to expand operations may not be completed on the timelines anticipated by the Company, or at all; ability to access additional power from the local power grid and realize the potential of the clean energy strategy on terms which are economic or at all; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; development of additional facilities to expand operations may not be completed on the timelines anticipated by the Company; ability to access additional power from the local power grid; an increase in natural gas prices may negatively affect the profitability of the Company's power plant; the digital currency market; the Company's ability to successfully mine digital currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company's filings at and The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about, among other things, the current profitability in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company's assets going forward; the Company's ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the negative impact of regulatory changes in the energy regimes in the jurisdictions in which the Company operates; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainties therein. The Company undertakes no obligation to revise or update any forward-looking information other than as required by applicable law.
Yahoo
an hour ago
- Yahoo
Hempalta Provides Strategic Update Regarding Equipment Sale and FCC Agreement
Calgary, Alberta--(Newsfile Corp. - June 6, 2025) - Hempalta Corp. (TSXV: HEMP) ("Hempalta" or the "Company"), a Canadian-based provider of nature-based carbon credit solutions, today issued a corporate update outlining recent developments in its strategic transition. Equipment Sale Update On May 22, 2025, Hempalta announced its wholly owned subsidiary, Hempalta Processing Inc. ("HPI"), had entered into a US$1.15 million agreement to sell its hemp processing and biochar equipment (the "Transaction"). Despite follow up discussions and repeated assurances, the purchase price has not been paid to HPI; accordingly, HPI has retained ownership of all equipment and associated intellectual property and has reinitiated the asset sale process. Interested parties may contact the Company for additional details. FCC Forbearance Agreement In connection with the termination of the Transaction, HPI, has entered into a forbearance agreement with Farm Credit Canada ("FCC") dated effective June 2, 2025. This agreement extends protection through June 30, 2025, providing HPI time to complete a revised monetization plan for its processing assets while maintaining transparency and compliance with its senior lender. Carbon Credit Market Momentum Continues The Company's 2024 carbon credits now total 29,448 tonnes of CO₂ removal across 12,669 acres under the Hemp Carbon Standard. These credits are available for purchase via the Company's Cloverly storefront ( and discussions with corporate buyers are ongoing. CEO to Speak at Canadian Climate Investor Conference Hempalta President and CEO Darren Bondar will be speaking at the 2025 Canadian Climate Investor Conference hosted by the Toronto Stock Exchange (TSX and TSXV) on June 11, 2025, at the Arcadian Court in Toronto. Mr. Bondar will outline Hempalta's strategic pivot to nature-based carbon credit markets and showcase the scalable growth opportunity through its Hemp Carbon Standard platform. About Hempalta Corp. Hempalta Corp. (TSXV: HEMP) is a Canadian clean-tech company focused on high-integrity carbon removal credits derived from industrial hemp. Through its wholly owned subsidiary, Hemp Carbon Standard Inc., the Company supports regenerative agriculture, biochar deployment, and AI-powered MRV to deliver transparent, verifiable carbon credits aligned with global climate goals. Learn more at or contact Investor Relations at invest@ For more information, please contact: Investor RelationsHempalta info@ Hempalta Corp. Web: Email: info@ Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Forward-Looking Information This news release contains statements and information that, to the extent they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is typically, but not always, identified by the use of words such as "expects," "plans," "continues," "intends," "anticipates," "potential," "aims," "will," and similar expressions, including negatives thereof. Forward-looking information in this news release includes, but is not limited to, statements regarding: the Company's ability to complete the sale of its hemp processing and biochar equipment; the resolution of the outstanding forbearance with Farm Credit Canada (FCC); negative cash flow from operations and the Company's ability to operate as a going concern; the anticipated proceeds and timing of any asset sales; the scaling of the Hemp Carbon Standard platform; the sale of verified carbon credits; the development of new corporate offtake agreements; and the Company's broader growth initiatives under Hempalta carbon credit platform. Such forward-looking information is based on assumptions and expectations, including but not limited to: the Company's ability to remarket and sell the equipment; continued support from major shareholders and new investors; demand for nature-based carbon removal credits; successful onboarding of additional farmers; favorable regulatory conditions; and Hempalta's ability to execute its strategic plan and secure necessary financing on reasonable terms. Although the Company believes the assumptions and expectations reflected in the forward-looking information are reasonable, undue reliance should not be placed on them, as actual results may differ materially due to known and unknown risks. These risks include, but are not limited to: economic conditions and capital market volatility; failure to close the asset sale or private placement; changes in carbon credit market demand or pricing; regulatory changes; inability to retain key personnel; weather-related challenges impacting hemp cultivation; and those risks set forth in the Company's public disclosure documents available on SEDAR+ at Forward-looking information in this news release is provided as of the date hereof, and the Company does not undertake to update such information except as required by applicable securities laws. NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
