DMG Files Q3 Financial Statements and MD&A
VANCOUVER, British Columbia, Aug. 28, 2020 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and technology company, is pleased to announce the filing of its 3rd Quarter Financials. This news release should be read in conjunction with the financial statements and MD&A, which are available at www.sedar.com.
Highlights:
- In May 2020 the Bitcoin halving occurred, leading to lower bitcoin block rewards for DMG’s mining operations as compared to the same period in 2019
- Revenue reported for the period Q3 2020 was $1,363,233 with a comprehensive loss of $532,071, as compared to a loss of $2,552,705 in Q3 2019, a substantial improvement
- Revenues do not reflect the 1,000 MicroBT M30S new miners energized June 30, 2020
- General expenses, including operations and administrative costs reduced from $6,665,584 in Q3 2019 to $2,258,593 in Q3 2020 representing a reduction of 66%
- Consulting and Forensics revenues of $345,793 in the last three quarters
DMG’s CEO Dan Reitzik commented, “The past 18 months may have been challenging in the crypto-mining industry due to a significant drop in bitcoin price beginning in December 2017, increased network hashrate, and a reduction in capital investment. However, DMG primarily invested in the infrastructure in our Christina Lake facility, one of the largest in North America, and with bitcoin prices rising again, the future looks bright. Our revenues have traditionally come from hosting third party clients from around the world, but earlier in 2020, based on the increasing bitcoin price and availability of new mining technologies, the Company made the decision to begin upgrading DMG’s self-mining fleet, and to date have added approximately 112 PH comprised of 1242 MicroBT M30S miners and a variety of other miners. The Company’s goal for self-mining remains at 500 PH by the end of 2020, and we hope to achieve this milestone, which would make DMG one of the largest bitcoin mining companies by PH in the world. Manufacturing supply issues, however, and access to favourable financing options, may impede this goal.
DMG continues to work towards its goal of being a diversified crypto and blockchain company and will provide updates to its shareholders shortly on the Wazabi Project, a supply chain platform for the regulated products industry. DMG’s forensic division is growing rapidly and recently completed its sixth consulting project of the year, with many more planned for the next six months. Blockseer and Walletscore continue to be important tools for the Company’s forensics work, and are also a key component for DMG’s comprehensive mining software platform, also to be detailed shortly.
DMG is currently exploring multiple acquisition opportunities specifically related to additional low-cost mining operations, mining software products and new mining technologies. We are pleased with the Company’s current operations and are excited about the future of our increased self-mining capacity and significant technology advances”.
DMG’s COO, Sheldon Bennett, reports, “Bringing our operational costs, especially G&A, down significantly from the previous period has positioned the Company to take advantage of increasing crypto prices.”
The Company will soon announce an investor conference call to provide detailed update on the Company’s operations, challenges and plans moving forward.
About DMG Blockchain Solutions Inc.
DMG is a diversified cryptocurrency and blockchain platform company that is focused on the two primary opportunities in the sector – mining public blockchains and applying permissioned blockchain technology. DMG focuses on mining bitcoin, providing hosting services for industrial mining clients, earning revenues from block rewards and transaction fees, developing data analytics and forensic software products, working with auditors, law firms, and law enforcement to provide technical expertise. 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, with previous experience working at Bitfury, PwC, EY, Cisco and UBS.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Email: [email protected]
Web: www.dmgblockchain.com
Direct: 778-868-6470
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the 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, 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.
