DMG Blockchain Solutions Announces Preliminary October 2024 Operational Results
Press Release
VANCOUVER, British Columbia, Nov. 04, 2024– DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a leading vertically integrated blockchain and data center technology company, announces its preliminary Bitcoin mining operational results for October 2024:
- Bitcoin Mined: 34 BTC (up from 23 BTC in September)
- Hashrate: 1.53 EH/s (up from 1.1 EH/s in September; includes 0.12 EH/s moved and energized to a hosting location during October)
- Bitcoin Holdings: 399 BTC (DMG liquidated $2.0 million of its bitcoin to meet the regulatory capital required for Systemic Trust to become a fully qualified custodian and $1.0 million of its bitcoin to pay down its $1.0 million loan secured by property.)
DMG is Adding Mining Capacity
DMG has purchased six one-megawatt hydro mining containers, scheduled for delivery and installation in the current quarter, which is ahead of the anticipated hydro miner delivery. Hydro is a technology that uses water to more efficiently cool the mining equipment than the fans used in air-cooled miners. Subsequent to the purchase, delivery and installation of Bitmain Direct Liquid Cooling (DLC) hydro miners that would completely fill the six hydro mining containers, this expansion would be expected to increase DMG’s hashrate by 0.4 EH/s with an efficiency of 15-16 J/TH, thereby bringing DMG’s total mining fleet to approximately 2.1 EH/s at an efficiency of 21 J/TH.
DMG’s CEO, Sheldon Bennett, stated, “In October, we boosted our bitcoin production by nearly 50% from the previous month, reaching approximately 1.65 EH/s by month’s end. Now, we are turning our focus to the next phase of hashrate growth using DLC hydro technology, planned for deployment in early 2025. Additionally, we have successfully deployed our miners with a trusted hosting partner we have known for many years, as we believe hosting is a valuable tool to enhance site diversification and reduce operational costs.”
DMG Pays Off $1 Million Loan
On October 30, 2024, DMG fully repaid its $1 million interest-only loan secured by property. This loan, initially taken on July 22, 2022, aimed to defer bitcoin liquidation for capital purchases. At the time of origination, BTC was priced at USD 22,715, and just before the payoff date, it had risen to USD 69,908. By deferring the sale of $1 million in bitcoin, DMG effectively gained over $2 million from the appreciation in bitcoin value, significantly outpacing the interest payments made over the loan term.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hashrate 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 hashrate and mining difficulty.
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated blockchain and data center technology company that develops, manages, and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company’s operations are driven by two strategic pillars: Core and Core+, both unified by DMG’s commitment to vertical integration and environmentally responsible practices. DMG is the parent company of Systemic Trust Corporation, which is focused on the custody of digital assets.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X, LinkedIn, Facebook 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
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.com
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