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.comFollow @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
Web: www.dmgblockchain.com
Investor Relations Contact:CORE IR 516-222-2560
For Media Inquiries:Jules Abraham, Head of Public RelationsCORE
IR917-885-7378julesa@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.
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