DMG Blockchain Solutions Releases 2021 Annual Review
9:27AM ET on Thursday Jan 20, 2022 by GlobeNewswire
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
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.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @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 Relations
DMG Blockchain Solutions Announces Delay of Annual Filings and Application for a Management Cease Trade Order VANCOUVER, British Columbia, Jan. 26, 2022 -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, announces that it has been advised by its external auditors (the “Auditors”) that they will require additional time to complete its internal review and audit procedures for the Company’s financial year ended September 30, 2021.
As a result, the Company will not be able to file its audited annual financial statements for the year ended September 30, 2021 and related management’s discussion and analysis (collectively, the “2021 Annual Financial Statements”), and the CEO and CFO certifications to be delivered in respect of the 2021 Annual Financial Statements (the “Certifications”) by the filing deadline of January 28, 2022 as required under applicable Canadian securities laws.
The Company also announces that it will be making an application to the British Columbia Securities Commission (“BCSC”), the Company’s principal securities regulator in Canada, under National Policy 12-203 of the Canadian Securities Administrators (“NP 12-203”) requesting that a management cease trade order (“MCTO”) be granted in respect of the late filing of the 2021 Annual Financial Statements and related Certifications.
There is no guarantee that a MCTO will be granted.
However, if a MCTO is granted, the Company will work with the Auditors and dedicate appropriate resources to promptly finalize the 2021 Annual Financial Statements and the related Certifications, so the 2021 Annual Financial Statements and related Certificates can be filed on or before the expiry of the MCTO.
Further, if a MCTO is granted, the Company’s senior officers and other insiders will not be able to trade the Company’s securities while the MCTO is in effect, and the Company will be required to comply with the provisions of the alternative information guidelines as set out in NP 12-203 for so long as the MCTO remains in effect, including the issuance of bi-weekly default status reports by way of press releases.
The Company is not currently subject to any insolvency proceedings. If the Company provides any material information to any of its creditors during the period in which the MCTO is in effect, the Company will also be required to file a material change report under its profile on SEDAR (www.sedar.com) containing such information. If a MCTO is granted but the Company is unable to file the 2021 Annual Financial Statements and related Certifications prior to the expiry of the MCTO, it is anticipated that the BCSC will issue a general “failure to file” cease trade order prohibiting the trading by any person of any securities of the Company, including trades in the Company’s common shares made through the TSX Venture Exchange, which would take effect shortly after the expiry of the MCTO and would remain in place until such time as the 2021 Annual Financial Statements and related Certifications have been filed.
The Company will make further announcements with respect to the status of the 2021 Annual Financial Statements and related Certifications as and when appropriate. 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.
Follow @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
Investor Relations Contact: CORE IR 516-222-2560
For Media Inquiries: Jules Abraham, Head of Public Relations CORE IR 917-885-7378 julesa@coreir.com