VANCOUVER, British Columbia, March 08, 2022 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, has released select preliminary revenue guidance for the three-month period ending Dec. 31, 2021 (first quarter). All financial information in this press release is unaudited and reported in Canadian dollars unless otherwise indicated.
With the receipt of additional crypto miners throughout Q1, DMG’s mining capacity increased resulting in expected consolidated revenue for Q1 2021-2 to be in the range of $13.5-14 million, compared with $3.5 - $4 million in Q4 2021, an approximately 260% increase quarter over quarter.
The Company expects to file its interim financial statements and accompanying management’s discussion and analysis for the three-month period ended December 30, 2021 during the month of March 2022.
Core Operations
DMG’s coin production for Q1’s mining operations are estimated to be 175-180 BTC, depending on network difficulty and overall mining hashrate, a significant gain of just over 260% from Q4’s production numbers of 47 - 50 BTC. As well, the Company estimates an average hashrate ending Q1 of approximately 410 Ph/s compared to the end of Q4’s hashrate of 280 Ph/s, which is a 46% gain.
As previously reported, DMG has ordered 7,850 S19j Pros and 1,800 S19 XPs Bitcoin miners from Bitmain for a total hashrate of 1,037 PH/s. Currently DMG is operating an average of 510 PH/s and has received approximately 50% of its hashrate orders.
Core+ Operations
DMG’s previously announced Core+ strategy continues to take shape. Its pool services for MaraPool found 194 blocks by the end of Dec 2021 from its start in early Q1. As well, DMG has started beta testing Terrapool through Q1 which has found 15 blocks so far in testing, all with renewable energy.
"This is an important quarter for DMG as it marks the first where the company is deriving significant revenue from its investment in self mining and a new fleet of crypto mining equipment. Our strategy to move from a primarily hosting focused company to greater focus on self-crypto mining is progressing well with approximately 50% of our purchased exahash in place and running now. Along with our Core strategy gains, our Core+ team has made significant progress in software platforms over Q1. Our pooling software is continuing to find blocks in line with expected luck and we are continuing to work on other platforms to help diversify DMG’s revenue," comments Sheldon Bennett, DMG’s Chief Executive Officer.
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 center operations, data analytics and forensics, and developing enterprise blockchains. DMG’s non-polluting data center operations focus on earning eco-friendly revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients entirely powered by renewable energy. 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 environmentally committed management team includes seasoned crypto experts, forensic & financial professionals, and blockchain developers with deep relationships throughout the industry and a strong ecological consciousness.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate 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 hash rate mining difficulty.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate 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 hash rate mining difficulty.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on Twitter and subscribe to DMG's YouTube channel.
On behalf of the Board of Directors,
Sheldon Bennett, CEO and Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Email: investors@dmgblockchain.com
Investor Relations Contact:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, Head of Public Relations
CORE IR
917-885-7378
julesa@coreir.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 revenue guidance, Bitcoin production estimates, Core+ strategies and plans , the 2022 outlook and plans, the expected delivery and installation dates of Bitcoin miners, the expected Ph/s from the additional Bitcoin miners, the expected Bitcoin produced each day, filing of interim financial statements, hiring more employees and personnel, developing and executing on the Company’s products and services, working with other platforms to diversify revenues, the launch of products and services including the Terra Pool, 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. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.SEDAR.com.
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.
