VANCOUVER, British Columbia, Aug. 26, 2024 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and data center technology company, today announces its fiscal third quarter 2024 financial results. All financial references are in Canadian Dollars unless specified otherwise.

Q3 2024 Financial Results Highlights

• Q3 2024 revenue up 11% over the prior year to $8.3M, driven by self-mining revenues increasing 5%
• Net income of negative $3.8 million, a smaller loss versus the year-ago period
• 87 bitcoin mined in the third quarter, down from 152 bitcoin in the prior quarter, with a hashrate of 0.95 EH/s and fleet efficiency of 25.6 J/T
• Operating cash flow in the third quarter of -$1.3 million versus $4.5 million in the prior quarter
• Strong balance sheet with $39.6 million in cash and digital currency, $111 million in total assets
  

Sheldon Bennett, DMG Blockchain Solutions’ Chief Executive Officer, commented, “The June 2024 quarter was a transitional quarter, marked by the once-every-four-year halvening event, which negatively affected our mined bitcoin. While we are encouraged by the execution of our Systemic Trust subsidiary toward becoming a qualified custodian, we missed our target to deploy our new fleet of 4,550 Bitmain T21 miners due to supply chain issues. Going forward, we are highly focused on regaining profitability by increasing our hashrate, improving our fleet efficiency and continuing to execute on our Core+ software initiatives.”

Third Quarter 2024 Financial Results Review

Revenue for the third fiscal quarter ending June 30, 2024 was $8.3 million versus $7.5 million in the year-ago period, an increase of 11%, primarily due to an increase in self-mining revenue. The increase in digital currency mining revenue was a result of bitcoin price increasing 139% over the year-ago period to an average of $89,990 in the June quarter. This increase was partially offset by a 71% increase in Bitcoin network difficulty from the same period last year.

Operating and maintenance costs for the three months ended June 30, 2024 was $4.7 million compared to $4.2 million in the same quarter in the prior year. The increase is attributed to utility expenses, driven by the expansion of digital currency mining operations and the addition of new miners.

General and administrative costs for the three months ended June 30, 2024 was $1.5 million compared to $0.9 million in the same quarter in the prior year. General and administrative costs increased due to the operations related to Systemic Trust ramping up.

Depreciation for the three months ended June 30, 2024 was $5.0 million compared to $5.3 million in the same quarter in the prior year. The decrease is based on the depreciation of existing assets, offset by an increase in mining equipment installed during the period.

Net loss for the three months ending June 30, 2024 was $3.8 million versus a loss of $4.3 million in the prior year period. Earnings per share for the third fiscal quarter ending June 30, 2024 was -$0.02 versus -$0.03 in the prior year period.

As of June 30, 2024, the Company had cash of $0.9 million, digital currency of $38.7 million and total assets of $111.4 million. For more details, please refer to the Company’s filings.

Readers are encouraged to review the Company’s June 30, 2024 quarterly unaudited financial statements and management’s discussion and analysis thereof for a fulsome assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca.

DMG Blockchain Solutions Inc. Third Quarter 2024 Financial Results Conference Call

The Company also announces that it will host a conference call to announce the third quarter 2024 financial results release date and provide a corporate update on August 27, 2024, at 4:30 pm ET. Participants are asked to pre-register for the call through this link. Registered participants will receive a Conference Call weblink and dial-in information in their confirmation email.

As there will be no live Q&A session, management will address pre-submitted questions during the call. Those wishing to submit a question may do so via investors@dmgblockchain.com using the subject line ‘Conference Call Question Submission’ through 2:00 pm ET on August 27, 2024.

About DMG Blockchain Solutions Inc.

DMG is an environmentally friendly vertically integrated blockchain and data center company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG’s sustainable businesses are segmented into two business lines under the Core and Core+ strategies and unified through DMG’s vertical integration.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG's YouTube channel.

For further information, please contact:

On behalf of the Board of Directors,

Sheldon Bennett, CEO & Director
Tel: 516-222-2560
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com

Investor Relations Contact:
Core IR 516-222-2560

For Media Inquiries:
Jules Abraham
Core IR
917-885-7378
julesa@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 DMG’s strategies and plans, increasing hashrate, improving fleet efficiency and continuing to execute on Core+ software initiatives, hosting a conference call, the opportunity and plans to monetize bitcoin transactions, the continued investment in Bitcoin network software infrastructure and applications, developing and executing on the Company’s products and services, increasing self-mining, efforts to improve the operation of its mining fleet, the launch of products and services, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information.

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.

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 of the Company, 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.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.

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, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, 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.