DMG Blockchain Solutions Provides Year in Review, December Mining Results
DMG Blockchain Solutions announced its preliminary bitcoin mining results for December 2022, reporting a total of 104.6 bitcoin mined with a hashrate of 0.91 EH/s. As of December 31, 2022, DMG holds 454 bitcoin. The company aims to achieve a full mining capacity of 1 EH/s and plans to introduce immersion cooling technology for improved efficiency. DMG's financial stability is highlighted by its minimal debt of $1 million, with plans for additional modest debt aimed at enhancing its technological infrastructure.
- Mined 104.6 bitcoin in December 2022.
- Achieved a hashrate of 0.91 EH/s and bitcoin balance of 454 bitcoin as of December 31, 2022.
- Significant progress towards mining capacity goal of 1 EH/s.
- Only $1 million in debt; exploring modest additional debt for technology advancement.
- Deferral of the 2 EH/s self-mining capacity goal beyond 2023.
- Delay in immersion cooling deployment, initially expected mid-2023.
VANCOUVER, British Columbia, Jan. 06, 2023 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FSE: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, announces December 2022 preliminary mining results: DMG mined 104.6 bitcoin with 0.91 EH/s realized hashrate. DMG’s bitcoin balance as of December 31, 2022 was 454 bitcoin.
Year in Review
For DMG, calendar 2022 was an important year, as the Company transitioned towards becoming a full-fledged self-miner and is now much better positioned for the long-term.
Core Strategy
DMG nearly reached its bitcoin mining computational capacity goal of 1 EH/s at the end of calendar 2022. While we entered our 2022 financial year at about 15 PH/s, we exited at about 700 PH/s and nearly reached 1 EH/s at the end of the calendar year, as we have received almost all our miner deliveries from Bitmain. We have yet to receive our final 42 PH/s delivery of S19 XPs, and we plan to purchase additional miners using accumulated credits from Bitmain. We plan to provide more details about our additional purchases in the near future.
To accommodate space for these new miners, as our Christina Lake mine building is full, we are setting up containerized mining on the property next to our substation, which will require very modest amounts of capital for interconnection of our previously purchased transformers to our existing distribution line as well as for the purchase of mining containers.
As an update on our longer-term mining goals, we still plan to implement immersion cooling, from which we expect to achieve up to a
Based on our expectation of slow or no bitcoin network hashrate growth in coming months, assuming bitcoin pricing remains around current levels, we may still be able to grow our hashrate faster than the bitcoin network over the next 12 months with very limited and highly targeted capital investments. Unlike other miners that have taken on extensive debt and are restructuring, DMG has only added
Core+ Strategy
In our Core+ software, we have slowed our development pace due to market conditions. Our key objectives for Core+ going forward will be to: 1) grow our Terra Pool hashrate with a longer-term goal of reaching
We also plan to make our first Petra main-net bitcoin transaction soon. Petra enables financial institutions to transact bitcoin using carbon neutral energy sources, while DMG’s Walletscore technology ensures they are not commingling their bitcoin with transactions using wallets that have been blacklisted by the US Department of Treasury’s OFAC (Office of Foreign Assets Control). We believe the Bosonic Exchange could become a platform for transacting bitcoin using Petra technology and are in discussions with Bosonic to integrate.
We expect more regulation and oversight in North America post-FTX. Assuming miners are not incorrectly classified as money services businesses or forced to perform know-your-customer checks on broadcasted transactions, we believe DMG should be a net beneficiary from increased regulation.
Board of Directors
This year, we built a new independent board, as Steven Eliscu moved into a management role from his initial Board seat. We also added three new directors, John Place, who brings a wealth of legal and public sector experience, Kelly Allin, who comes with an accounting and audit background and J.D. Abouchar, an entrepreneur and investor with a keen understanding as to how the right management team and strategy can deliver returns to shareholders. We are happy to have such a spectrum of experience being brought to bear as we weather the current environment.
DMG 5-Year Public Company Anniversary
Finally, we would like to thank the employees of DMG for their hard work, as it will be our five-year public company anniversary on Feb 10. It is because of their hard work that we have built a company that is well positioned for the future. In the near term, we will stay focused on building up our foundation of bitcoin mining along with our software, which we continue to believe offers great long-term potential.
Grant of Stock Options
DMG also announces it has granted 200,000 stock options (“Options”) to a Company director. The Options are exercisable for a period of five years at a price of
About Terra Pool
Terra Pool (terrapool.io) is a cryptocurrency mining platform operated by DMG’s Blockseer software company. Terra Pool is the world's first Bitcoin mining pool focused on clean energy. The purpose of this initiative is to accelerate the shift from conventional power to clean energy and reduce the impact of Bitcoin mining on the environment. Terra Pool aggregates the computing power of individual miners and then shares the received rewards and transaction fees proportionally among them so that miners are rewarded more consistently.
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 two business lines under the Core and Core+ strategies and unified through DMG's vertical integration.
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.
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 Communications
CORE IR
(917) 885-7378
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 growth and expectations of the Terra Pool as well as its Petra and Walletscore technologies, developing and executing on the Company's products and services, the increase in Bitcoin self-mining and achieving its target of 1 EH/s, the expected arrival of new miners and the increased hashrate once the miners are installed and operating, implementation of immersion cooling and the expected increase in hashrate, development of the Core+ strategy, the Company’s plans and goals, 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.
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 and services; 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 and services, 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. 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, adverse weather and climate events, 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 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, 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.
FAQ
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