VANCOUVER, British Columbia, Nov. 04, 2024 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) ("DMG"), a leading vertically integrated blockchain and data center technology company, announces its preliminary Bitcoin mining operational results for October 2024:
Bitcoin Mined: 34 BTC (up from 23 BTC in September)Hashrate: 1.53 EH/s (up from 1.1 EH/s in September; includes 0.12 EH/s moved and energized to a hosting location during October)Bitcoin Holdings: 399 BTC (DMG liquidated $2.0 million of its bitcoin to meet the regulatory capital required for Systemic Trust to become a fully qualified custodian and $1.0 million of its bitcoin to pay down its $1.0 million loan secured by property.)
DMG is Adding Mining Capacity
DMG has purchased six one-megawatt hydro mining containers, scheduled for delivery and installation in the current quarter, which is ahead of the anticipated hydro miner delivery. Hydro is a technology that uses water to more efficiently cool the mining equipment than the fans used in air-cooled miners. Subsequent to the purchase, delivery and installation of Bitmain Direct Liquid Cooling (DLC) hydro miners that would completely fill the six hydro mining containers, this expansion would be expected to increase DMG's hashrate by 0.4 EH/s with an efficiency of 15-16 J/TH, thereby bringing DMG's total mining fleet to approximately 2.1 EH/s at an efficiency of 21 J/TH.
DMG's CEO, Sheldon Bennett, stated, "In October, we boosted our bitcoin production by nearly 50% from the previous month, reaching approximately 1.65 EH/s by month's end. Now, we are turning our focus to the next phase of hashrate growth using DLC hydro technology, planned for deployment in early 2025. Additionally, we have successfully deployed our miners with a trusted hosting partner we have known for many years, as we believe hosting is a valuable tool to enhance site diversification and reduce operational costs.”
DMG Pays Off $1 Million Loan
On October 30, 2024, DMG fully repaid its $1 million interest-only loan secured by property. This loan, initially taken on July 22, 2022, aimed to defer bitcoin liquidation for capital purchases. At the time of origination, BTC was priced at USD 22,715, and just before the payoff date, it had risen to USD 69,908. By deferring the sale of $1 million in bitcoin, DMG effectively gained over $2 million from the appreciation in bitcoin value, significantly outpacing the interest payments made over the loan term.
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 and mining difficulty.
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated blockchain and data center technology company that develops, manages, and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company's operations are driven by two strategic pillars: Core and Core+, both unified by DMG's commitment to vertical integration and environmentally responsible practices. DMG is the parent company of Systemic Trust Corporation, which is focused on the custody of digital assets.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X, LinkedIn, Facebook and subscribe to DMG's YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: 516-222-2560
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.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. Forward-looking statements contained in this news release include statements regarding the expected increase in DMG's hashrate, transitioning a part of DMG's miner fleet to a third-party hosting provider and the expected benefits and outcomes, DMG's strategies and plans, the expected delivery of the hydro mining containers in the December 2024 quarter, delivering products that enable the monetization of bitcoin transactions, developing and executing on the Company's products and services, increasing self-mining, 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 and 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 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. For further information concerning these and other risks and uncertainties, refer to the Company's filings on www.sedarplus.ca. 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 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, 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, directors, officers 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.