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DMG Blockchain Solutions Inc. (TSX-V:DMGI) (OTC US:DMGGF) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and cryptocurrency company, yesterday reported its fiscal second quarter 2018 financial results. All figures are in Canadian dollars, unless otherwise noted.
Key Second Quarter 2018 Highlights:
- Completed listing on the TSX Venture Exchange
- Revenue of $3,344,699 (552% quarter-over-quarter revenue growth)
- Purchased 2,650 new mining rigs utilizing an additional 4 megawatts of power for DMG’s MaaS customers
- Completed acquisition of Blockseer, a Silicon Valley-based software development company, for approx. $2.6 million and 7,673,076 DMG shares
- Constructing flagship data center with up to 85 megawatts (“MW”) of mining capacity, 40 MW of which are expected to be available in Q3.
- Appointed Charlie Lee, creator of Litecoin, and Lou Kerner, known as the “Crypto Oracle” to DMG’s advisory board
- Added two expert cryptocurrency and blockchain legal advisors, Varun Gupta and Samuel Osei
The CEO’s Message
Our second fiscal quarter of operations was the most active period to-date for DMG Blockchain Solutions Inc. The Company continues to build its presence both in Japan and North America thanks to its expanding mining operations and development of blockchain analytics tools. Following our Q1 announcement of a Mining-as-a-Service (MaaS) agreement with the Bitmaster Financial network in Japan, DMG received an order in excess of $3 million from Japanese based Forside Financial Service (“Forside”) for mining hardware purchases and set-up.
The majority of DMG’s current revenues are derived from our MaaS business (hosting and management of Bitcoin mining facilities on behalf of third parties globally), which uniquely insulates DMG from fluctuating Bitcoin spot price volatility. During Q2, we purchased an additional 2,650 Bitmain S9 mining rigs to fill orders from our MaaS customers, servicing them with approximately 4 megawatts of power. DMG’s flagship mining facility is 27,000 square feet of industrial space which can host over 30,000 mining rigs. DMG is working with its energy utility partner to deliver over 150 megawatts of hydroelectric power to multiple sites over the next 18 months.
DMG also completed its acquisition of Blockseer, developers of industry-leading crypto-analytics and artificial intelligence (A.I.) software. Blockseer’s roadmap of analytics tools includes Bitscore, a risk-scoring tool for analyzing cryptocurrency holdings, Graph Intelligence, which traces bitcoin flows through the blockchain, and Market Factors, a blockchain data feed for market trading algorithms. Existing Blockseer clients include the US Department of Homeland Security, F.B.I., and I.R.S.
The Company also announces it has issued a total of 125,000 stock options to an employee and an officer of the Company at an exercise price of $0.80 with an expiry date of June 30, 2021.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, along with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting - Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, adding more megawatts of power, 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 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 the 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, 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, 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.
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.