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DMG Blockchain Solutions Reports Fourth Quarter and Year-End Results Ending September 30,


DMG Blockchain Solutions Inc.

DMG Blockchain Solutions Inc.

VANCOUVER, British Columbia, Jan. 30, 2023 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and cryptocurrency technology company, today announces its fourth quarter and full fiscal-year financial results. All financial references are in Canadian Dollars unless specified otherwise.

Recent Highlights

  • Increased hashrate during fiscal year 2022 from 15 PH/s to 700 PH/s

  • Strong balance sheet at fiscal year-end with $10.5 million in cash and digital currency with no debt

  • For full year 2022, $43.2 million revenue, $1.5 million income before other items, $17.0 million net loss (-$0.10 per share)

Readers are encouraged to review the Company’s September 30, 2022 year-ended audited financial statements and management’s discussion and analysis thereof for a fulsome assessment of the Company’s performance and applicable risk factors, available at

Sheldon Bennett, DMG Blockchain Solutions’ Chief Executive Officer, commented, “DMG has successfully managed through a very difficult crypto currency market with bitcoin-Canadian dollar price declining 56% during our financial year 2022.   Despite these challenging market conditions, we outperformed many of our competitors, which experienced severe financial hardships as a result of the industry downturn and subsequent environment resulting from the FTX situation. Our prudent approach to drive growth while carefully managing our balance sheet enabled us to execute and continue to generate positive cash operating income. We ended the financial year with $10.5 million worth of cash and digital currency and no debt.”

Steven Eliscu, Chief Operating Officer added, “In 2022, we built a sound base of leading-edge bitcoin mining capacity that we can continue to grow with the purchase of new miners, conversion of our existing mining assets to utilize immersion cooling technology, as well as the potential development of new sites. In addition, we believe in the future of our Core+ software strategy to monetize bitcoin transactions by building on our carbon-neutral pool, Terra Pool, monetizing our Petra technology for filtering in known good transactions, and creating a carbon-neutral bitcoin marketplace. We believe this suite of technologies will enable us to further grow our revenue in the long-term.”

Adrian Glover, Chief Technology Officer, continued, “2022 was a year for moving forward DMG’s software development, the results of which we expect to bear fruit in 2023 with an upgraded version of Terra Pool, deployment of Petra on the Bitcoin mainnet, and upgrades to our Helm mine management software, which would support our deployment of immersion cooling at scale.”

Financial Highlights

Revenue for the fiscal year ending September 30, 2022 was $43.2 million versus $10.2 million in the prior year period, an increase of 323%, mainly on the increase in bitcoin mining capacity. Additionally, there were increases in software license and related development income as compared to the prior year. These increases were offset by a decrease in equipment hosting revenue as the Company continues to move toward a focus on self-mining operations.

Revenue for the fourth quarter ending September 30, 2022 was $6.5 million versus $10.5 million in the prior quarter, a sequential decrease of 38%, and $2.5 million in the prior year period. The decline in revenues from the prior quarter was primarily driven by the 35% decline in the average price of bitcoin.

Income before other items for the fiscal year ending September 30, 2022 was $1.5 million versus -$6.8 million in the prior year period.

Operating and maintenance costs for the year ended September 30, 2022 was $13.0 million as compared to $6.6 million for the year ended September 30, 2021. The majority of this was due to an increase of $6.6 million in utilities costs, which is related to the increase in digital currency mining activity from the additional miners acquired during the year. Operating and maintenance costs for the three months ended September 30, 2022 were $3.5 million as compared to $1.6 million in the same quarter in the prior year. The increase is a result of increases in utilities costs of $1.9 million, which is related to the increase in digital currency mining activity and the net increase in miners throughout the period.

Net loss for the fiscal year ending September 30, 2022 was $17.0 million, versus $9.6 million in the prior year period. Increases in revenue of $33.0 million were offset by increases in depreciation of $17.9 million and operating and maintenance costs of $6.5 million all related to the increase in installation of new miners for self-mining. Research costs increased by $1.5 million, mostly related to work on software development projects. Additionally, the Company recognized a decline in fair value on its investment in Brane of $3.0 million and its investment in Bosonic of $2.8 million as well as an impairment of the amount recoverable of $1.3 million. The increase in net loss was offset by a decrease in share-based compensation of $1.1 million.

Earnings per share for the fiscal year ending September 30, 2022 was -$0.10 versus -$0.07 in the prior year period.

As at September 30, 2022, the Company had cash of $1.2 million, digital currency of $9.3 million and total assets of $96.9 million. For more details, please refer to the Company’s filings.

Management Call

Today the Company also announces that it will host a conference call to review fourth quarter 2022 financial results and provide a corporate update on January 31, 2023, at 4:30 PM ET. Participants are asked to pre-register for the call through the following link:

Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay. Those without Internet access or unable to pre-register may dial in by calling: 1-844-282-4703 (U.S. toll free), 1-412-317-5624 (international) or 1-647-484-8814 (Canadian toll free). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the DMG Blockchain call.

The conference call will also be available through a live webcast found here, and will be available for webcast replay approximately one hour after the end of the call and until April 30, 2023.

A telephonic replay of the call will be available through February 14, 2023, and may be accessed by calling 1-877-344-7529 (U.S. toll free), 1-412-317-0088 (international) or 855-669-9658 (Canadian toll free) and using the access code 5467434.

Although 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 January 31, 2023 at 2:00 PM ET.

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 two business lines under the Core and Core+ strategies and unified through DMG’s vertical integration.

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:
Follow @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.

For further information, please contact:

DMG Blockchain Solutions Inc.

Investor Relations Contact:
CORE IR 516-222-2560

For Media Inquiries:
Jules Abraham

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 potential of Core+ strategies and plans, Terra Pool, delivering products that enable the monetization of bitcoin transactions, developing and executing on the Company’s products and services, increasing self-mining, 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.

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…

Read More: DMG Blockchain Solutions Reports Fourth Quarter and Year-End Results Ending September 30,

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