DMG Blockchain Solutions Announces Preliminary November 2024 Operational Results, Management Purchases Company Shares

Rhea-AI Summary

DMG Blockchain Solutions reported its November 2024 operational results, mining 32 BTC compared to 34 BTC in October, while increasing hashrate to 1.66 EH/s from 1.53 EH/s. Bitcoin holdings grew to 423 BTC from 399 BTC. The company recently closed a $17.3 million unit offering and purchased 5 megawatts of Bitmain S21+ Hydro miners, aiming to reach 2.1 EH/s by early 2025. Additionally, management demonstrated confidence through share purchases, with CEO Sheldon Bennett acquiring 99,461 shares and COO Steven Eliscu purchasing 107,000 shares.

Positive

• Secured $17.3 million through unit offering
• Increased hashrate to 1.66 EH/s from 1.53 EH/s
• Bitcoin holdings grew to 423 BTC from 399 BTC
• Management demonstrated confidence through significant share purchases
• Achieved SOC 2 Type II compliance

Negative

• Monthly Bitcoin production decreased to 32 BTC from 34 BTC in October

VANCOUVER, British Columbia, Dec. 02, 2024 (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, announces its preliminary Bitcoin mining operational results for November 2024:

Operational Highlights:

• Bitcoin Mined: 32 BTC vs 34 BTC in October 2024
• Hashrate: 1.66 EH/s vs 1.53 EH/s in October 2024
• Bitcoin Holdings: 423 BTC vs 399 BTC in October 2024
  

DMG Blockchain Solutions demonstrated continued progress in its operational metrics during November, achieving 32 BTC mined bitcoin and a hashrate of 1.66 EH/s. The Company is continuing to refine its operations to realize further incremental hashrate improvements while readying its Christina Lake property to receive its six Bitmain hydro containers and its first 1 megawatt of Bitmain S21 Hydro miners.

DMG’s CEO, Sheldon Bennett, commented, “November was a transformative month: Piggybacking on our Artificial Intelligence (AI) Data Center partnership announcement with the Malahat Nation, we successfully closed a $17.3 million unit offering, significantly bolstering our financial position and enabling us to accelerate multiple growth initiatives. With the purchase of 5 megawatts of Bitmain S21+ Hydro miners on top of the prior purchase of 6 megawatts of hydro mining containers and 1 megawatt of Bitmain S21 Hydro miners, we are positioning ourselves to grow our hashrate to 2.1 EH/s in early calendar 2025. The funds raised will also support further investments in Systemic Trust and our initial investments in AI infrastructure, while freeing us to hold bitcoin in the near term, aligning with our positive outlook on bitcoin’s market trajectory. Furthermore, achieving SOC 2 Type II compliance reaffirms our commitment to security and operational excellence.”

Management Purchases Company Shares

The Company also announces that Sheldon Bennett, DMG’s CEO and Steven Eliscu, DMG’s COO, each recently purchased DMG shares in open market purchases. Mr. Bennett purchased 99,461 shares and Mr. Eliscu purchased 107,000 shares, as disclosed on SEDI.

“With our recent execution on building out enterprise-class SOC2-compliant software for our Systemic Trust subsidiary and carbon neutral pool, Terra Pool, we are well positioned to realize our strategy to enable a carbon neutral Bitcoin ecosystem in the coming year. In addition, with a nascent AI strategy that can result in a new generation of data centers built in conjunction with indigenous bands, we are preparing to launch the next stage of DMG that goes beyond the cryptocosm. As we are executing on our goals, I affirm my belief that DMG has the potential to create significant value,” Mr. Eliscu added.

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. DMG’s sustainable businesses are segmented into two business lines under the Core and Core+ strategies and unified through DMG’s vertical integration.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG's YouTube channel.

For further information, please contact:

On behalf of the Board of Directors,

Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
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 DMG’s strategies and plans, increasing hashrate and the anticipated timelines, the expected arrival and operation of the hydro miners and containers, the development of Systemic Trust, improving fleet efficiency and continuing to execute on Core+ software initiatives, the opportunity and plans to monetize bitcoin transactions, the continued investment in Bitcoin network software infrastructure and applications, developing and executing on the Company’s products and services, increasing self-mining, 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 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.

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; 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 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 bitcoin 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 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.

FAQ

How many bitcoins did DMG Blockchain Solutions (DMGGF) mine in November 2024?

DMG Blockchain Solutions mined 32 bitcoins in November 2024, compared to 34 bitcoins in October 2024.

What was DMG Blockchain Solutions' (DMGGF) hashrate in November 2024?

DMG Blockchain Solutions achieved a hashrate of 1.66 EH/s in November 2024, up from 1.53 EH/s in October 2024.

How much funding did DMG Blockchain Solutions (DMGGF) raise in November 2024?

DMG Blockchain Solutions closed a $17.3 million unit offering in November 2024.

What is DMG Blockchain Solutions' (DMGGF) targeted hashrate for early 2025?

DMG Blockchain Solutions aims to grow its hashrate to 2.1 EH/s in early 2025.