DMG Blockchain Solutions Purchases 1,800 Additional ASIC Miners and will Participate in H.C. Wainwright & Co. Cryptocurrency Mining Panel

Rhea-AI Summary

DMG Blockchain Solutions announces the acquisition of 1,800 additional bitcoin ASIC miners, which will increase its total hashrate to over 680 PH/s. The miners are expected to be delivered starting August 2021 over the next year. DMG continues to focus on its Core+ strategy, aiming to enhance efficiency through immersion cooling technology. CEO Sheldon Bennett will participate in the Cryptocurrency Mining Panel on April 27, 2021. Additionally, DMG issued nearly 2 million stock options to employees at an exercise price of $1.41 for three years.

Positive

• Acquisition of 1,800 additional bitcoin ASIC miners, boosting hashrate to over 680 PH/s.
• Continued execution of Core+ strategy, enhancing operations with immersion cooling technology.
• Participation in the Cryptocurrency Mining Panel promotes company visibility and industry engagement.

Negative

• Future operational results could be negatively impacted by Bitcoin price volatility and network difficulty.

VANCOUVER, British Columbia, April 26, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, today announces the purchase of an additional 1,800 bitcoin ASIC miners, which is an additional approximate 180 PH/s, increasing DMG’s total hashrate to well over 680 PH/s.

DMG’s continuing negotiations with leading Bitcoin mining equipment manufacturers has enabled the Company to purchase further equipment for mid-term delivery. Delivery of these miners is expected to begin in August 2021 and continue for the next 12 months.

“As described during the Company’s April 22, 2021 conference call, DMG continues to focus its Core+ strategy by increasing the procurement of newest generation equipment. Along with its Core strategy, DMG will work to transition these miners to immersion cooling to gain further efficiencies in power consumption and increased over all hashrate,” said DMG’s CEO, Sheldon Bennett. “With the addition of these miners, along with our commitment to our Core+ strategy of investing and growing the Blockseer platforms, DMG continues to execute on its vertical integration.”

H.C. Wainwright & Co. Virtual Conference “Cryptocurrency, Blockchain and FinTech Conference”

DMG’s CEO, Sheldon Bennett, will be participating in the Cryptocurrency Mining Panel on Tuesday, April 27, 2021 at 10:00 a.m. Eastern time alongside our peers. The Cryptocurrency Mining Panel will explore financial adoption and regulation.

DMG also announces that it has issued 1,972,106 stock options to managing directors and employees at an exercise price of $1.41 for a three-year term.

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.

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.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com 

On behalf of the Board of Directors,

Sheldon Bennett, CEO & Director

For further information, please contact:
DMG Blockchain Solutions Inc.
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com 

Investor Relations Contact:
CORE IR 516-222-2560

For Media Inquiries:
Jules Abraham, Head of Public Relations
CORE IR
jabraham@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. Statements about the Company’s plans for the acquisition of additional Bitcoin miners, plans and goals to increase petahash (PH) by self-mining, completion of retrofitting of the facility, the expected delivery times of the miners, transition miners to immersion cooling and the expected benefits therefrom, investing in and growing the Blockseer platforms, 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 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, decrease in the price of Bitcoin and other cryptocurrencies, 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. 

FAQ

What is the significance of DMGGF's acquisition of new ASIC miners in April 2021?

The acquisition of 1,800 ASIC miners will increase DMG's total hashrate to over 680 PH/s, enhancing its mining capabilities.

When will the new ASIC miners be delivered to DMG Blockchain Solutions?

Delivery of the new ASIC miners is expected to begin in August 2021 and will continue over the next 12 months.

What is DMG Blockchain Solutions' Core+ strategy?

DMG's Core+ strategy focuses on acquiring the latest generation mining equipment and improving operational efficiency.

How does Bitcoin price affect DMG's performance?

DMG's operational results may be adversely affected by fluctuations in Bitcoin prices and mining difficulty.

What did DMG Blockchain Solutions announce on April 26, 2021?

DMG announced the purchase of 1,800 additional ASIC miners and the issuance of stock options to employees.