DMG Blockchain Solutions Inc. (TSX-V:DMGI) (DMGGF:OTCQB US)
(FRANKFURT:6AX) (“
DMG” or the
“
Company”), a vertically integrated blockchain and
cryptocurrency technology company, is pleased to announce updates
and plans for its infrastructure and immersion cooling deployment
initiative at its flagship cryptocurrency facility in anticipation
of adding additional miners.
As previously reported, the Company has
sufficient funds on hand to complete the retrofitting of the first
30 megawatts of infrastructure to immersion cooling, which will
increase the Company's future bitcoin mining capacity to
approximately 1.0 Exahash (EH/s) when complete as
planned in the first half of 2021. Immersion cooling requires
approximately 30% less bitcoin miners than air cooled for the same
hashrate, leading to significant capital cost reductions over air
cooled systems.
DMG expects completion of the facility’s
retrofitting of the next 30MW to reach a total of 60MW in the
second half of 2021. Upon completion of the infrastructure and
retrofitting upgrades and access to power supply, DMG’s facility
will then have a future capacity for approximately 2.0
Exahash of immersion cooled Bitcoin mining utilizing 60MW
of power.
In anticipation of the retrofitting timelines,
DMG is currently in discussions with leading Bitcoin mining
equipment manufacturers for a purchase order that would give DMG
the right to purchase, in stages, a minimum of 1.0 EH/s of the
newest generation of mining equipment specific to immersion
cooling. Various manufacturing companies are developing specific
immersion cooling Bitcoin miners which DMG has been reviewing for
the optimal purchase for its retrofitting.
The future deployment of at least 1.0 EH/s of
immersion cooled mining in the first half of this year is expected
to occur in stages based on the amount of capital raised through
equity and/or debt financing.
DMG's COO, Sheldon Bennett, commented:
“DMG’s self-mining
strategy is to deploy capital into the most efficient technology
possible to ensure the best possible ROI on miners and greatest
revenue potential over the life of the hardware. Upon the
formalization of the Digital Currency Miners of North America
(DCMNA) pool, DMG will connect all its miners to the DCMNA, thus
increasing mining margins. Depending on the size of the purchase
order(s), DMG may seek financial instruments to aid in
completing this deployment of new miners.”
A large-scale purchase of mining equipment is
subject to certain conditions including, but not limited to, DMG
having sufficient funds to complete the purchase and the execution
of a definitive contract setting forth the terms and conditions.
Depending on the size of the purchase order, DMG may need to raise
funds through the issuance of equity and/or debt financing.
The Company expects COVID-19 to affect the
availability and timing of mining equipment, including increased
shipping costs. If additional mining equipment is purchased for the
Christina Lake facility, the Company expects longer than normal
delivery times. As a result of this (which is happening
industry-wide), DMG is using this time to upgrade its facility to
be prepared for this future deployment of Bitcoin miners.
In addition to the physical retrofitting of the
Christina Lake data centre, there are specific major components
that are underway in parallel, to ensure the best operational
performance from capital investments.
In order to ensure that the retrofitting and the
addition of new infrastructure at the Christina Lake data center
maintains DMG’s timelines, the Company has selected a British
Columbia construction and manufacturing firm to oversee design,
procurement, proprietary manufacturing and installation during this
project. This will greatly aid DMG during the Covid-19 constrained
supply chain challenges that most companies are facing in this
industry.
“DMG’s goal is to be the most efficient and
technologically advanced mining company in the entire Bitcoin
mining industry,” said DMG’s COO, Sheldon Bennett. “Our immersion
cooling deployment initiative is just the beginning of numerous
technological innovations to be developed and implemented by DMG as
part of our rapid growth strategy in the coming years, and the best
is yet to come.”
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.
About DMG Blockchain Solutions
Inc.
DMG is a vertically integrated blockchain and
cryptocurrency company that manages, operates, and develops
end-to-end digital solutions to monetize the blockchain ecosystem.
DMG’s businesses are segmented into three main divisions: data
centre operations, data analytics and forensics and developing
enterprise blockchains. DMG’s data centre operations focus on
earning revenues from block rewards and transaction fees by mining
primarily bitcoin as well as providing hosting services for
industrial mining clients. 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 management team includes
seasoned crypto experts, forensic & financial professionals and
blockchain developers with deep relationships throughout the
industry.
For more information on DMG Blockchain Solutions
visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions
Inc.Email: investors@dmgblockchain.com
Web: www.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 based on current expectations. Statements about the
purchase and timing of mining equipment and the related potential
financings, to increase petahash (PH) (or exahash (EH/s)) by
self-mining, completion of the upgrades to the facility and the
expected benefits therefrom, price of bitcoin, plans and
intentions, other potential transactions, acquisition of customers,
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.
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 (or lack
thereof) 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, 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.
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