Highlights of the Year:
- Core bitcoin mining operations at the Christina Lake Data Centre reached a calendar year high of 420 Ph/s
- Core+ platforms under DMG’s Blockseer brand updated major products including Petra and Helm
- Strategic investments in Black Box, Brane, Bosonic and partnerships with Argo, Zodia, Crypto Climate Accord and Bitcoin Mining Council
VANCOUVER, British Columbia, Jan. 20, 2022 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, today announces the release of their Annual Review for 2021. Further, the Company is expecting to release its audited financials by January 31, 2022 and will conduct an investor conference call shortly after its financial statements are released.
DMG has had a strong end to the calendar year with December 2021 results of:
Mined Bitcoin: 66.71 BTC
Daily Average: 2.149 BTC
Miners Added: 441 S19J Pros
Hashrate Added: 45 Ph/s
December Max Hashrate: 420 Ph/s
DMG also made its live hashrate publicly available on its website banner, which has hit an all-time high of 464.47 Ph/s since the start of the New Year.
Core Operations - 2021 Reviewed
DMG continued to develop its Core operations in 2021, focusing on self mining and the completion of its data centre’s mining infrastructure in Christina Lake. DMG kicked off the year with independent testing of its immersion mining solution and ended the year with over one exahash of new generation mining equipment purchased, including the S19 XPs, with deliveries started in the Fall of 2021 and continuing throughout 2022.
Early in the 2021 calendar year DMG changed its focus from majority hosting in its facility to focusing on self mining with a few strategic hosting clients. With this new focus DMG added nearly 4,250 S19J Pro miners by the end of 2021, reaching a peak of 420 Ph/s, with monthly additions planned to be received, installed and operating throughout 2022 to reach over 1 exahash (1,000 Ph/s) by the end of 2022.
DMG’s independent immersion testing results, on a small batch of Bitcoin miners, substantiated the Company’s calculations that retrofitting from air to immersion cooling achieves an 18% decrease in miner power consumption with the same amount of computation hashrate. These results enable DMG to use less miners (thus reduce our capital spend) to reach our hashrate goals as well as extend their operating life compared to running fans cooled miners. Due to DMG’s research in immersion being validated the Company will focus on implementation of this technology throughout 2022.
During 2021, with the ongoing issues related to Covid-19 and unforeseen disruptions in the global supply chain, DMG decided to take control of many of its manufacturing needs by making a strategic investment in Black Box Manufacturing, a company that specializes in the design and manufacture of electrical and mechanical enclosures for multiple industries including crypto mining. To date, the collaboration, specific to crypto, has produced 300 Power Distribution Units (PDUs) for DMG as well as 6 crypto mining containers for DMG and its clients with current production now averaging 4 containers per month.
In 2022 DMG plans to continue focusing on projects at its Christina Lake site which diversify its revenue and increase its efficiencies in operations. The Company has already completed a study on deploying solar panels on its property and installing up to one megawatt of Hydrogen production. Throughout the New Year DMG will assess the viability of moving forward with these, and many other projects, on this site. As well, DMG has been working with other power generators and utilities which may lead to DMG diversifying beyond Christina Lake in 2022. As these projects solidify, DMG will provide updates.
Core+ Platforms - 2021 Reviewed
DMG announced its Core+ strategy early in 2021 and has been building this strategy using Blockseer’s technology and platforms as its foundation. DMG focused on hiring senior software engineers to accelerate its plans in the Core+ area, including experts in Front End, Back End and Database Design. Our long-term hiring strategy includes continuing to look for candidates who are interested in the space and can transfer their experience from more traditional sectors.
This focus turned 2021 into a great year for DMG's Core+ platforms. Functionality, UI, and core database upgrades were made to Blockseer’s Helm platform to not only enhance its ability to manage the over 10,000 miners operating on it now, but to enable it to expand well into the hundreds of thousands of miners for the future.
In addition, part of DMG’s Core+ strategy is to build and operate mining pools that align with our strategic goals. We are delighted that we had the opportunity to do this in partnership with Marathon Digital Holdings, which successfully launched earlier in the year and has since found 370+ blocks. Terra Pool has also been performing well through our joint testing with Argo Blockchain, with over 20 blocks found and is planned to be launched for new participants in February of this year. This brings over 4 Eh/s across Blockseer built and managed pools with nearly 400 blocks mined.
Blockseer entered into many new strategic partnerships during 2021. Zodia started a new partnership with us and has successfully tested the Petra platform during 2021. All told, Petra managed approximately 100 transactions which were testnet mined using a Blockseer mining pool. DMG has also been testing and successfully holding and transferring coins using Brane’s crypto wallet technology. Both companies are looking forward to finalizing and releasing Breeze and Freeze in 2022. Our partnership with Bosonic allowed us to complete beta integration and testing of their Layer 2 Exchange in 2021 and we are now working on a 2022 release date which will enable Blockseer users to access crypto exchange functionality.
In 2022, DMG will continue its software development and investments in Blockseer’s platforms and strategic partnerships. Blockseer’s original platforms Walletscore and Explorer will be re-architected similar to the work completed on Helm during 2021. Terra Pool will go through further development testing phases until its go-live market launch. And, in line with DMG’s focus on regulatory compliance, all Blockseer platforms are being built to meet SOC2 Compliance requirements in 2022.
DMG’s CEO Sheldon Bennett, comments, “2021 was a monumental year for DMG! We launched a clear strategy which was communicated through two initiatives - Core and Core+. Building strategic partnerships with the likes of Argo, Zodia, Brane and Bosonic, to name a few, put DMG at the forefront of industrial mining operations and software. The Company has secured 1 exahash of mining equipment through purchase orders (with Bitcoin miners delivered throughout 2022) as well as successfully launched our first bitcoin mining pool with a second pool soon to become public. Looking back, the Company’s achievements will be a springboard for a banner growth year in 2022.”
Partnerships and Investments - 2021 Reviewed
DMG’s goal is to be the leading “Vertically Integrated” blockchain company. The Company is driving its development by seeking investments and partnerships with various organizations that accelerate its strategy. During 2021 DMG licensed to Marathon Digital Holdings, the technology behind MaraPool. In partnership with Argo Blockchain PLC, Blockseer is close to publicly releasing Terra Pool. As well, Blockseer’s partnership with Zodia has achieved successful trials of Petra in record time.
Investments have been made into a yet undisclosed crypto exchange, Brane Inc. (crypto custody company), Bosonic (a Layer 2 Crypto Trading Platform), and Black Box Manufacturing (electrical & mechanical enclosures).
DMG and Argo Blockchain PLC also announced their partnership in the Crypto Climate Accord (CCA) to promote the decarbonization of the cryptocurrency industry. DMG Blockchain has been an active member of the Bitcoin Mining Council (“BMC”) with CEO, Sheldon Bennett, recently presenting during the BMC’s Q3 Results on future crypto regulations. The BMC is an open forum of Bitcoin miners committed to the Bitcoin network and its core principles. The Council has provided great research into the consumption of energy revolving around Bitcoin mining.
In 2022, DMG will continue to execute on its strategy and develop its partnerships and investments while updating its investors and stakeholders on its progress.
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.
On behalf of the Board of Directors,
Sheldon Bennett, CEO and Director
For further information, please contact:
Investor Relations Contact:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, Head of Public Relations
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 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, the expected benefits and installation of immersion cooling technology, filing of audited financial statements, hiring more employees and personnel, developing and executing on the Company’s products and services, the launch of products and services including the Terra Pool, manufacturing of containers, 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 including the annual information form for the year ended September 30, 2020, filed on January 28, 2021.
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.