Latest news with #DMGBlockchainSolutionsInc
Yahoo
26-05-2025
- Business
- Yahoo
DMG Blockchain Solutions Inc (DMGGF) Q2 2025 Earnings Call Highlights: Strategic AI Expansion ...
Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DMG Blockchain Solutions Inc (DMGGF) is expanding into AI with a focus on partnerships and client acquisition, particularly with public sector entities in Canada. The company has developed a comprehensive product suite, including Helm, Reactor, and Explorer, to support its carbon-neutral Bitcoin ecosystem. DMG Blockchain Solutions Inc (DMGGF) achieved a hash rate goal of 2.1 exahash and plans to grow to 3 exahash by the end of the calendar year without dilutive financing. The company is actively working on securing long-term government contracts for AI infrastructure, which could provide significant revenue streams. DMG Blockchain Solutions Inc (DMGGF) has a strong cash position with $62 million in cash, short-term investments, and digital currencies at the end of the quarter. The company experienced a decrease in its cash, short-term investments, and Bitcoin balance by 3% sequentially. Operating and maintenance costs increased by 14% due to higher seasonal energy rates and increased hash rate. DMG Blockchain Solutions Inc (DMGGF) reported a net loss of $0.02 per share in the March quarter. The company is facing challenges in securing AI agreements due to the lengthy government procurement process. There is uncertainty regarding the company's ability to secure non-dilutive financing for its planned expansion to 3 exahash. Warning! GuruFocus has detected 4 Warning Signs with DMGGF. Q: How long is it going to take to secure AI agreements, especially with government bureaucracy involved? A: Sheldon Bennett, CEO: It can take a long time with government, but we remain optimistic about securing agreements in the coming months. The Canadian government has a sense of urgency to achieve AI self-sufficiency, and we are actively working through the process with various agencies. We aim for long-term agreements that command a premium, rather than short-term ones that may not cover high capital costs. Q: Why didn't you use debt financing to fund AI equipment purchases? A: Sheldon Bennett, CEO: Debt instruments require a revenue source to back them. The 2 megawatts of AI infrastructure we purchased do not generate immediate cash flow, so it wasn't feasible to secure financing. We used our own funds to jumpstart our AI initiatives. Q: How does DMG compare to other mining stocks like Hive and Marra, and what strategies could lead to all-time highs? A: Steven Elescu, COO: On an EV to hash rate basis, we've been valued less than larger peers, but we are focused on translating our investments in software, services, and AI into meaningful results. This could be a catalyst for stock growth. We continue to generate cash from Bitcoin mining, which supports our short-term needs. Q: What is the strategic rationale for buying the prefabricated data center? A: Steven Elescu, COO: Owning physical infrastructure enhances our credibility in discussions about deploying sovereign AI in Canada. The prefabricated data center serves as a bridge to larger, next-generation data centers and helps us secure initial agreements that can lead to larger offtake agreements. Q: Why are you more optimistic about long-term Bitcoin mining at the Christina Lake facility? A: Sheldon Bennett, CEO: We are optimistic due to lower overall costs with non-firm power and the potential to retrofit air-cooled infrastructure to hydro-cooled, which is cost-effective. We continue to look for other sites with low-cost energy, but Christina Lake offers competitive advantages. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-05-2025
- Business
- Yahoo
DMG Blockchain Solutions Inc (DMGGF) Q2 2025 Earnings Call Highlights: Strategic AI Expansion ...
Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DMG Blockchain Solutions Inc (DMGGF) is expanding into AI with a focus on partnerships and client acquisition, particularly with public sector entities in Canada. The company has developed a comprehensive product suite, including Helm, Reactor, and Explorer, to support its carbon-neutral Bitcoin ecosystem. DMG Blockchain Solutions Inc (DMGGF) achieved a hash rate goal of 2.1 exahash and plans to grow to 3 exahash by the end of the calendar year without dilutive financing. The company is actively working on securing long-term government contracts for AI infrastructure, which could provide significant revenue streams. DMG Blockchain Solutions Inc (DMGGF) has a strong cash position with $62 million in cash, short-term investments, and digital currencies at the end of the quarter. The company experienced a decrease in its cash, short-term investments, and Bitcoin balance by 3% sequentially. Operating and maintenance costs increased by 14% due to higher seasonal energy rates and increased hash rate. DMG Blockchain Solutions Inc (DMGGF) reported a net loss of $0.02 per share in the March quarter. The company is facing challenges in securing AI agreements due to the lengthy government procurement process. There is uncertainty regarding the company's ability to secure non-dilutive financing for its planned expansion to 3 exahash. Warning! GuruFocus has detected 4 Warning Signs with DMGGF. Q: How long is it going to take to secure AI agreements, especially with government bureaucracy involved? A: Sheldon Bennett, CEO: It can take a long time with government, but we remain optimistic about securing agreements in the coming months. The Canadian government has a sense of urgency to achieve AI self-sufficiency, and we are actively working through the process with various agencies. We aim for long-term agreements that command a premium, rather than short-term ones that may not cover high capital costs. Q: Why didn't you use debt financing to fund AI equipment purchases? A: Sheldon Bennett, CEO: Debt instruments require a revenue source to back them. The 2 megawatts of AI infrastructure we purchased do not generate immediate cash flow, so it wasn't feasible to secure financing. We used our own funds to jumpstart our AI initiatives. Q: How does DMG compare to other mining stocks like Hive and Marra, and what strategies could lead to all-time highs? A: Steven Elescu, COO: On an EV to hash rate basis, we've been valued less than larger peers, but we are focused on translating our investments in software, services, and AI into meaningful results. This could be a catalyst for stock growth. We continue to generate cash from Bitcoin mining, which supports our short-term needs. Q: What is the strategic rationale for buying the prefabricated data center? A: Steven Elescu, COO: Owning physical infrastructure enhances our credibility in discussions about deploying sovereign AI in Canada. The prefabricated data center serves as a bridge to larger, next-generation data centers and helps us secure initial agreements that can lead to larger offtake agreements. Q: Why are you more optimistic about long-term Bitcoin mining at the Christina Lake facility? A: Sheldon Bennett, CEO: We are optimistic due to lower overall costs with non-firm power and the potential to retrofit air-cooled infrastructure to hydro-cooled, which is cost-effective. We continue to look for other sites with low-cost energy, but Christina Lake offers competitive advantages. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Associated Press
06-05-2025
- Business
- Associated Press
DMG Blockchain Solutions Announces Preliminary April Operational Results
VANCOUVER, British Columbia, May 05, 2025 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) ('DMG' or the 'Company'), a vertically integrated blockchain and data center technology company, today announces its preliminary operational results for April 2025: DMG's April results reflect stable mining operations alongside key strategic investments. The Company mined 30 BTC during the month, slightly down from 32 BTC in March due to increased network difficulty and one day shorter duration. Meanwhile, DMG increased its realized hashrate to 1.93 EH/s, supported by the deployment of additional Bitmain S21+ Hydro miners and has now reached its 2.1 EH/s target, which may be slightly trimmed on an ongoing operational basis, at least through the summer months, to best manage its fleet in a higher ambient temperature environment. DMG liquidated a portion of its Bitcoin holdings, reducing its treasury from 458 BTC in March to 351 BTC in April. Proceeds were used mainly to fund the acquisition of 2 megawatts capacity of prefabricated artificial intelligence (AI) data center infrastructure as well to make the first material paydown on its Sygnum Bank loan, which had a $20 million balance at the end of March. These actions mark a significant step in executing DMG's broader strategy to shift its data center capacity towards AI, while delevering its balance sheet. Sheldon Bennett, DMG's CEO, commented, 'We remain focused on advancing our AI strategy while maintaining a cash generating Bitcoin operation. With the purchase of 2 megawatts of AI data center infrastructure, we have made a demonstrative shift to utilize the returns generated from Bitcoin mining to fund our initial AI capital expenditures, which we believe will accelerate our ability to secure off-take agreements. Our focus remains on high-value government and enterprise users seeking sovereign AI solutions for Canada.' About DMG Blockchain Solutions Inc. DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG's carbon-neutral Bitcoin ecosystem, which enables financial institutions to move Bitcoin in a sustainable and regulatory-compliant manner. For additional information about DMG Blockchain Solutions and its initiatives, please visit Follow @dmgblockchain on X, LinkedIn and Facebook, and subscribe to the DMG YouTube channel to stay updated with the latest developments and insights. For further information, please contact: On behalf of the Board of Directors, Sheldon Bennett, CEO & Director Tel: +1 (778) 300-5406 Email: [email protected] Web: For Investor Relations: [email protected] For Media Inquiries: Chantelle Borrelli Head of Communications [email protected] 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. Forward-looking statements contained in this news release include statements regarding DMG's strategies and plans, executing on DMG's broader strategy to shift its data center capacity towards AI, securing high-value AI off-take agreements, the opportunity and plans to monetize bitcoin transactions and provide additional products and services to customers and users, the continued investment in Bitcoin network software infrastructure and applications, the expected allocation of capital, developing and executing on the Company's products and services, increasing self-mining, increasing hashrate, efforts to improve the operation of its mining fleet, the potential trimming of self-mining due to higher ambient temperature environment, the launch of products and services, events, courses of action, and the potential of the Company's technology and operations, among others, are all forward-looking information. 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 operating results could also be materially affected by the price of bitcoin and an increase in hashrate mining difficulty. 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 of the Company, 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 bitcoin; the demand and pricing of Gen AI data centers and usage; security threats, including a loss/theft of DMG's bitcoin; 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. For further information concerning these and other risks and uncertainties, refer to the Company's filings on In addition, DMG's past financial performance may not be a reliable indicator of future performance. 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 viruses and diseases on the Company's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin from DMG or its customers, consumer sentiment towards DMG's products, services and blockchain and Gen AI technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, 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.
Globe and Mail
02-04-2025
- Business
- Globe and Mail
DMG Blockchain Solutions Announces Preliminary March Operational Results
VANCOUVER, British Columbia, April 02, 2025 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) ("DMG" or the "Company"), a vertically integrated blockchain and data center technology company, today announces its preliminary operational results for March 2025: DMG's expected growth to 2.1 EH/s has experienced a slight delay. Currently, the Company operates 2 megawatts of S21 Hydro and S21+ Hydro miners, achieving a total fleet hashrate of nearly 1.9 EH/s. The next 2 megawatts are expected to be deployed by mid-April, following a minor delay in S21+ Hydro miner shipments, with the remaining 2 megawatt capacity scheduled for deployment by the end of April to accommodate the replacement of defective mining infrastructure components. DMG's CEO, Sheldon Bennett, commented, 'Despite a several-week delay relative to our prior guidance in achieving our 2.1 EH/s hashrate goal, we are pleased with the performance of our hydro mining equipment and expect to complete this phase of expansion shortly. While we continue optimizing the growth and efficiency of our Bitcoin mining fleet, our primary focus remains on securing high-value AI offtake agreements and attracting new clients for Systemic Trust and Terra Pool to advance our carbon neutral Bitcoin ecosystem. We believe these investments will maximize long-term shareholder value as we execute our strategy.' Grant of Stock Options and RSUs DMG announces the granting of stock options and RSUs to employees and directors of the Company. A total of 428,170 stock options ("Options") and 1,050,000 restricted stock units ("RSUs") have been granted. The Options are exercisable over five years at a price of $0.24 per share, with vesting in 25% increments on the six-, 12-, 18-, and 24-month anniversaries of the grant date. The RSUs vest in one year; these grants are designed to create an incentive structure that aligns longer-term performance with the Company's growth. About DMG Blockchain Solutions Inc. DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG's carbon-neutral Bitcoin ecosystem, which enables financial institutions to move Bitcoin in a sustainable and regulatory-compliant manner. For additional information about DMG Blockchain Solutions and its initiatives, please visit Follow @dmgblockchain on X, LinkedIn and Facebook, and subscribe to the DMG YouTube channel to stay updated with the latest developments and insights. For further information, please contact: On behalf of the Board of Directors, Sheldon Bennett, CEO & Director Tel: +1 (778) 300-5406 Email: investors@ Web: For Investor Relations: investors@ For Media Inquiries: Chantelle Borrelli Head of Communications chantelle@ 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. Forward-looking statements contained in this news release include statements regarding DMG's strategies and plans, energizing the remaining 2 MW of hydro miners in April 2025, increasing DMG's hashrate to 2.1 EH/s, securing highvalue AI off-take agreements and attracting new clients for Systemic Trust and Terra Pool to advance DMG's carbon neutral Bitcoin ecosystem, the opportunity and plans to monetize bitcoin transactions and provide additional products and services to customers and users, the continued investment in Bitcoin network software infrastructure and applications, the expected allocation of capital, developing and executing on the Company's products and services, increasing self-mining, increasing hashrate, efforts to improve the operation of its mining fleet, the launch of products and services, events, courses of action, and the potential of the Company's technology and operations, among others, are all forward-looking information. 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 operating results could also be materially affected by the price of bitcoin and an increase in hashrate mining difficulty. 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 of the Company, 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 bitcoin; the demand and pricing of Gen AI data centers and usage; security threats, including a loss/theft of DMG's bitcoin; 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. For further information concerning these and other risks and uncertainties, refer to the Company's filings on In addition, DMG's past financial performance may not be a reliable indicator of future performance. 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 viruses and diseases on the Company's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin from DMG or its customers, consumer sentiment towards DMG's products, services and blockchain and Gen AI technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, 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.
Yahoo
05-03-2025
- Business
- Yahoo
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.
