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DMG Blockchain Solutions Reports Second Quarter 2024 Results Ending March 31, 2024

VANCOUVER, British Columbia, May 22, 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 second quarter 2024 financial results. All financial references are in Canadian Dollars unless specified otherwise.

Q2 2024 Financial Results Highlights

  • Q2 2024 revenue increased 31% over the prior year to $10M, driven by self mining revenues increasing 39%
  • Net Income was slightly positive, maintaining profitability for the second consecutive quarter
  • 153 bitcoin mined, down 22% from the prior quarter, with a hashrate of 0.96 EH/s and fleet efficiency of 28.4 J/TH
  • $4.5 million cash flow from operations, up 19% from the prior quarter
  • Deploying Bitmain T21 miners with goal to reach 1.7 EH/s by the end of June, targeting 2 EH/s and beyond longer term
  • Strong balance sheet with $43.6M in cash and digital currency, $118M in total assets

Sheldon Bennett, DMG Blockchain Solutions’ Chief Executive Officer, commented, “We are pleased with our robust performance this quarter, achieving a 3% sequential revenue increase to $10.0M and maintaining profitability for the second consecutive quarter. Our strategic investments in both our Core and Core+ strategies are delivering promising results. Systemic Trust is paving the way for financial institutions to transact bitcoin in a carbon-neutral manner, while the deployment of our Bitmain T21 miners positions us to achieve 1.7 EH/s by the end of June with further expansion planned. Additionally, our strong cash flow from operations of $4.5M and a solid balance sheet with $43.6M in cash and digital currency underscore our execution.”

Second Quarter 2024 Financial Results Review

Revenue for the second fiscal quarter ending March 31, 2024 was $10.0 million versus $7.6 million in the prior year period, an increase of 31%, primarily due to the increase in digital currency mining revenues as a result of bitcoin price increasing 133% over the year-ago period to an average of $71,851 in the March quarter. This increase was partially offset by a 93% increase in Bitcoin network difficulty that lowered DMG’s bitcoin generation per EH/s by 47% from the same period last year. In addition, revenue was also partially offset by a loss in net pool revenue of $1.3 million.

Income before other items for the three months ended March 31, 2024 was -$1.8 million versus -$4.6 million in the prior year period.

Operating and maintenance costs for the three months ended March 31, 2024 were $5.3 million as compared to $4.6 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.

Net income for the three months ending March 31, 2024 was $2 thousand versus a loss of $3.8 million in the prior year period. The improvement in net income was driven primarily by an increase in revenue of $10.0 million versus $7.6 million in the prior year period, unrealized revaluation gain on digital currency, which was a gain of $1.0 million versus zero in the prior year period as well as realized gain on sale of digital currency of $1.1 million versus $0.5 million in the year-ago period. It was also driven by lower depreciation, which was $3.8 million versus $5.9 million in the prior year period. These were partially offset by operating and maintenance costs, which increased by $0.7 million and general and administrative expenses which increased by $1.1 million over the prior year.

Earnings per share for the second fiscal quarter ending March 31, 2024 was $0.00 versus -$0.02 in the prior year period.

As of March 31, 2024, the Company had cash of $1.6 million, digital currency of $42.0 million and total assets of $118.4 million. For more details, please refer to the Company’s filings.

Readers are encouraged to review the Company’s March 31, 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

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

The Company will host a conference call to review second quarter 2024 financial results and provide a corporate update on May  23, 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 using the subject line ‘Conference Call Question Submission’ through 2:00 pm ET on May 23, 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:
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

Investor Relations Contact:
Core IR 516-222-2560

For Media Inquiries:
Jules Abraham
Core IR

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, the expected increase in realized hashrate, deploying Bitmain T21 miners to reach 1.7 EH/s by June 2024, targeting 2 EH/s and beyond, hosting the conference call, the deployment of new capacity, the expected arrival of new miners, the expected timelines, 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 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 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.

DMG Blockchain Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)

  For the Three Months
For the Six Months Ended
 NotesMarch 31,
March 31,
March 31,
March 31,
Operating and maintenance costs16(a)5,270,8514,594,89810,418,5029,003,690 
General and administrative16(b)1,846,398776,9422,732,4591,724,878 
Stock-based compensation 398,010423,079766,502938,209 
Research and development 486,216499,165924,395931,104 
Provision for doubtful accounts 4250,7733,806114,377 
Total expenses 11,807,50312,199,56122,993,43424,657,807 
Loss before other items (1,791,844)(4,576,238)(3,287,011)(9,859,892) 
Other income (expense)     
Interest and other income7170,044122,091335,825235,232 
Provision of sales tax receivable (381,690)-(635,590)- 
Gain on disposition of assets 4,809-4,80970,429 
Foreign exchange loss (28,341)(26,014)(122,926)(106,991) 
Unrealized gain on revaluation of digital currency51,019,456-9,182,316- 
Realized gain on sale of digital currency 1,143,489506,0541,995,359328,892 
Gain (loss) on change in fair value of marketable securities (133,708)134,698111,043(94,823) 
Loss on fair value of investments10 -(609,120- 
Net income (loss) 2,215(3,839,409)6,974,705(9,427,153) 
Other comprehensive income     
Items that may be reclassified subsequently to income or loss:     
Unrealized revaluation gain on digital currency515,472,2156,245,33115,472,2154,820,027 
Cumulative translation adjustment (11,278)48,347(1,196)48,091 
Comprehensive income (loss)    15,463,152   2,454,269 


Basic and diluted income (loss) per share13(d)0.00(0.02)0.04(0.06) 
Weighted average number of shares outstanding13(d)    
- basic 169,029,065167,681,377168,585,910167,599,591 
- diluted 172,516,428167,681,377


DMG Blockchain Solutions Inc.
Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)


As at
March 31, 2024
As at
September 30,
Cash and cash equivalents 1,609,4791,789,913 
Amounts receivable62,102,7692,476,679 
Digital currency541,966,49417,142,683 
Prepaid expense and other current assets 332,900193,512 
Marketable securities8498,027386,984 
Assets held for sale113,702,4663,451,024 
Total current assets 50,212,13525,440,795 
Long-term deposits918,687,6233,256,324 
Property and equipment1242,632,37847,398,585 
Long-term investments1345,00045,000 
Amount recoverable76,782,0766,446,251 
Total assets 118,359,21282,586,955 
Trade and other payables145,408,3734,178,104 
Deferred revenue1963,71264,361 
Current portion of lease liability1557,01450,555 
Current portion of loans payable1612,127,6541,272,397 
Total current liabilities 17,656,7535,565,417 
Long-term lease liability1571,87341,202 
Total liabilities 17,728,6265,606,619 
Shareholders' Equity   
Share capital17(a)111,820,687110,820,540 
Accumulated other comprehensive income 15,620,063149,044 
Accumulated deficit (72,521,815)(79,496,520) 
Total shareholders' equity 100,630,58676,980,336 
Total liabilities and shareholders' equity 118,359,21282,586,955 
Contingencies 23  
Subsequent events25  

DMG Blockchain Solutions Inc.
Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)

  For the Six Months Ended 
 March 31, 2024March 31, 2023 
  $ $ 
Net income (loss) for the period6,974,705(9,427,153) 
Non-cash items:  
Share-based payments766,502938,209 
Unrealized foreign exchange loss40,35143,613 
Gain on disposition of assets(4,809)(70,429) 
Gain (loss) on change in fair value of marketable securities(111,043)94,824 
Loss on fair value of investment609,120- 
Provision for sales tax receivable635,590- 
Bad debt expense3,806114,377 
Digital currency related revenue(18,355,313)(13,773,874) 
Unrealized gain on digital currency(9,182,315)- 
Digital currency sold20,173,78111,161,893 
Realized gain on sale of digital currency(1,995,359)(328,892) 
Non-cash interest income(329,914)(229,349) 
Accrued interest-(129) 
Changes in non-cash operating working capital:   
Prepaid expenses and other current assets(144,388)52,650 
Amounts receivable(212,015)3,000,466 
Amounts recoverable-(237,039) 
Deferred revenue11,277(91,752) 
Trade and other payables1,144,9201,895,676 
Net cash provided by operating activities8,195,9385,114,106 
Purchase of property and equipment(830,859)(572,044) 
Deposits on mining equipment(18,102,867)(1,991,167) 
Proceeds on sale of equipment-4,829 
Purchase of short-term investment(609,120)- 
Proceeds from sublease-37,012 
Net cash used by investing activities(19,542,846)(2,521,370) 
Proceeds from option exercises438,02463,750 
Principal lease payments(61,187)(102,973) 
Proceeds from secured loan10,791,288950,665 
Repayment of loans payable(1,668)- 
Net cash provided by financing activities11,166,457911,442 
Impact of currency translation on cash17  (481)  
Change in cash (180,434)  3,503,697  
Cash, beginning 1,789,913  1,247,513  
Cash, end  1,609,479  4,751,210  

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