DMG Blockchain Solutions Reports Fourth Quarter and Year-End Results Ending September 30, 2022

VANCOUVER, British Columbia, Jan. 30, 2023 (GLOBE NEWSWIRE) — DMG Blockchain Options Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically built-in blockchain and cryptocurrency know-how firm, immediately publicizes its fourth quarter and full fiscal-year monetary outcomes. All monetary references are in Canadian {Dollars} except specified in any other case.

Current Highlights

• Elevated hashrate throughout fiscal 12 months 2022 from 15 PH/s to 700 PH/s

• Sturdy stability sheet at fiscal year-end with $10.5 million in money and digital foreign money with no debt

• For full 12 months 2022, $43.2 million income, $1.5 million earnings earlier than different gadgets, $17.0 million internet loss (-$0.10 per share)

Readers are inspired to evaluate the Firm’s September 30, 2022 year-ended audited monetary statements and administration’s dialogue and evaluation thereof for a fulsome evaluation of the Firm’s efficiency and relevant danger components, out there at www.sedar.com.

Sheldon Bennett, DMG Blockchain Options’ Chief Government Officer, commented, “DMG has efficiently managed by means of a really troublesome crypto foreign money market with bitcoin-Canadian greenback value declining 56% throughout our monetary 12 months 2022.   Regardless of these difficult market situations, we outperformed lots of our opponents, which skilled extreme monetary hardships on account of the trade downturn and subsequent surroundings ensuing from the FTX state of affairs. Our prudent method to drive development whereas fastidiously managing our stability sheet enabled us to execute and proceed to generate constructive money working earnings. We ended the monetary 12 months with $10.5 million value of money and digital foreign money and no debt.”

Steven Eliscu, Chief Working Officer added, “In 2022, we constructed a sound base of modern bitcoin mining capability that we are able to proceed to develop with the acquisition of recent miners, conversion of our present mining property to make the most of immersion cooling know-how, in addition to the potential growth of recent websites. As well as, we consider in the way forward for our Core+ software program technique to monetize bitcoin transactions by constructing on our carbon-neutral pool, Terra Pool, monetizing our Petra know-how for filtering in identified good transactions, and making a carbon-neutral bitcoin market. We consider this suite of applied sciences will allow us to additional develop our income within the long-term.”

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Adrian Glover, Chief Know-how Officer, continued, “2022 was a 12 months for transferring ahead DMG’s software program growth, the outcomes of which we anticipate to bear fruit in 2023 with an upgraded model of Terra Pool, deployment of Petra on the Bitcoin mainnet, and upgrades to our Helm mine administration software program, which might assist our deployment of immersion cooling at scale.”

Monetary Highlights

Income for the fiscal 12 months ending September 30, 2022 was $43.2 million versus $10.2 million within the prior 12 months interval, a rise of 323%, primarily on the rise in bitcoin mining capability. Moreover, there have been will increase in software program license and associated growth earnings as in comparison with the prior 12 months. These will increase had been offset by a lower in tools internet hosting income because the Firm continues to maneuver towards a give attention to self-mining operations.

Income for the fourth quarter ending September 30, 2022 was $6.5 million versus $10.5 million within the prior quarter, a sequential lower of 38%, and $2.5 million within the prior 12 months interval. The decline in revenues from the prior quarter was primarily pushed by the 35% decline within the common value of bitcoin.

Revenue earlier than different gadgets for the fiscal 12 months ending September 30, 2022 was $1.5 million versus -$6.8 million within the prior 12 months interval.

Working and upkeep prices for the 12 months ended September 30, 2022 was $13.0 million as in comparison with $6.6 million for the 12 months ended September 30, 2021. The vast majority of this was as a result of a rise of $6.6 million in utilities prices, which is said to the rise in digital foreign money mining exercise from the extra miners acquired in the course of the 12 months. Working and upkeep prices for the three months ended September 30, 2022 had been $3.5 million as in comparison with $1.6 million in the identical quarter within the prior 12 months. The rise is a results of will increase in utilities prices of $1.9 million, which is said to the rise in digital foreign money mining exercise and the online improve in miners all through the interval.

Web loss for the fiscal 12 months ending September 30, 2022 was $17.0 million, versus $9.6 million within the prior 12 months interval. Will increase in income of $33.0 million had been offset by will increase in depreciation of $17.9 million and working and upkeep prices of $6.5 million all associated to the rise in set up of recent miners for self-mining. Analysis prices elevated by $1.5 million, principally associated to work on software program growth tasks. Moreover, the Firm acknowledged a decline in truthful worth on its funding in Brane of $3.0 million and its funding in Bosonic of $2.8 million in addition to an impairment of the quantity recoverable of $1.3 million. The rise in internet loss was offset by a lower in share-based compensation of $1.1 million.

Earnings per share for the fiscal 12 months ending September 30, 2022 was -$0.10 versus -$0.07 within the prior 12 months interval.

As at September 30, 2022, the Firm had money of $1.2 million, digital foreign money of $9.3 million and whole property of $96.9 million. For extra particulars, please confer with the Company’s filings.

Administration Name

Right this moment the Firm additionally publicizes that it’ll host a convention name to evaluate fourth quarter 2022 monetary outcomes and supply a company replace on January 31, 2023, at 4:30 PM ET. Contributors are requested to pre-register for the decision by means of the next hyperlink:
https://dpregister.com/sreg/10175490/f5d31c6aa0.

Please notice that registered individuals will obtain their dial in quantity upon registration and can dial immediately into the decision at once. These with out Web entry or unable to pre-register might dial in by calling: 1-844-282-4703 (U.S. toll free), 1-412-317-5624 (worldwide) or 1-647-484-8814 (Canadian toll free). All callers ought to dial in roughly 10 minutes previous to the scheduled begin time and ask to be joined into the DMG Blockchain name.

The convention name will even be out there by means of a dwell webcast discovered here, and will likely be out there for webcast replay roughly one hour after the top of the decision and till April 30, 2023.

A telephonic replay of the decision will likely be out there by means of February 14, 2023, and could also be accessed by calling 1-877-344-7529 (U.S. toll free), 1-412-317-0088 (worldwide) or 855-669-9658 (Canadian toll free) and utilizing the entry code 5467434.

Though there will likely be no dwell Q&A session, administration will deal with pre-submitted questions in the course of the name. These wishing to submit a query might accomplish that through traders@dmgblockchain.com utilizing the topic line ‘Convention Name Query Submission’ by means of January 31, 2023 at 2:00 PM ET.

About DMG Blockchain Options Inc.

DMG is an environmentally pleasant vertically built-in blockchain and cryptocurrency firm that manages, operates, and develops end-to-end digital options to monetize the blockchain ecosystem. DMG’s sustainable companies are segmented into two enterprise strains below the Core and Core+ methods and unified by means of DMG’s vertical integration.

Future modifications within the Bitcoin network-wide mining problem charge or Bitcoin hash charge might materially have an effect on the long run efficiency of DMG’s manufacturing of Bitcoin, and future working outcomes is also materially affected by the value of Bitcoin and a rise in hash charge mining problem.
For extra data on DMG Blockchain Options go to: www.dmgblockchain.com
Observe @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.

For additional data, please contact:

DMG Blockchain Options Inc.
Electronic mail: investors@dmgblockchain.com
Internet: 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 Enterprise Change nor its Regulation Service Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts accountability for the adequacy or accuracy of this information launch.

Cautionary Observe Concerning Ahead-Trying Data

This information launch comprises forward-looking data or statements primarily based on present expectations. Ahead-looking statements contained on this information launch embrace statements concerning the potential of Core+ methods and plans, Terra Pool, delivering merchandise that allow the monetization of bitcoin transactions, creating and executing on the Firm’s services, growing self-mining, the launch of services, occasions, programs of motion, and the potential of the Firm’s know-how and operations, amongst others, are all forward-looking data.

Ahead-looking statements encompass statements that aren’t purely historic, together with any statements concerning beliefs, plans, expectations, or intentions concerning the long run. Such data can typically be recognized by way of forwarding-looking wording similar to “might”, “anticipate”, “estimate”, “anticipate”, “intend”, “consider” and “proceed” or the damaging thereof or comparable variations. The reader is cautioned that assumptions used within the preparation of any forward-looking data might show to be incorrect. Occasions or circumstances might trigger precise outcomes to vary materially from these predicted, on account of quite a few identified and unknown dangers, uncertainties, and different components, lots of that are past the management of the Firm, together with however not restricted to, market and different situations, volatility within the buying and selling value of the widespread shares of the Firm, enterprise, financial and capital market situations; the flexibility to handle working bills, which can adversely have an effect on the Firm’s monetary situation; the flexibility to stay aggressive as different higher financed opponents develop and launch aggressive merchandise; regulatory uncertainties; entry to tools; market situations and the demand and pricing for merchandise; the demand and pricing of bitcoins; safety threats, together with a loss/theft of DMG’s bitcoins; DMG’s relationships with its prospects, distributors and enterprise companions; the lack so as to add extra energy to DMG’s amenities; DMG’s capacity to efficiently outline, design and launch new merchandise in a well timed method that meet prospects’ wants; the flexibility to draw, retain and encourage certified personnel; competitors within the trade; the influence of know-how modifications on the merchandise and trade; failure to develop new and modern merchandise; the flexibility to efficiently keep and implement our mental property rights and defend third-party claims of infringement of their mental property rights; the influence of mental property litigation that might materially and adversely have an effect on the enterprise; the flexibility to handle working capital; and the dependence on key personnel. DMG might not truly obtain its plans, projections, or expectations. Such statements and data are primarily based on quite a few assumptions concerning current and future enterprise methods and the surroundings during which the Firm will function sooner or later, together with the demand for its merchandise, the flexibility to efficiently develop software program, that there will likely be no regulation or legislation that can forestall the Firm from working its enterprise, anticipated prices, the flexibility to safe adequate capital to finish its enterprise plans, the flexibility to realize targets and the value of bitcoin. Given these dangers, uncertainties, and assumptions, you shouldn’t place undue reliance on these forward-looking statements. The securities of DMG are thought of extremely speculative as a result of nature of DMG’s enterprise. For additional data regarding these and different dangers and uncertainties, confer with the Firm’s filings on www.SEDAR.com. As well as, DMG’s previous monetary efficiency might not be a dependable indicator of future efficiency.

Components that might trigger precise outcomes to vary materially from these in forward-looking statements embrace, failure to acquire regulatory approval, the continued availability of capital and financing, tools failures, lack of provide of apparatus, energy and infrastructure, failure to acquire any permits required to function the enterprise, the influence of know-how modifications on the trade, the influence of Covid-19 or different viruses and illnesses on the Firm’s capacity to function, safe tools, and rent personnel, competitors, safety threats together with stolen bitcoins from DMG or its prospects, client sentiment in direction of DMG’s merchandise, companies and blockchain know-how typically, failure to develop new and modern merchandise, litigation, hostile climate or local weather occasions, improve in working prices, improve in tools and labor prices, lower within the value of Bitcoin, failure of counterparties to carry out their contractual obligations, authorities laws, lack of key staff and consultants, and common financial, market or enterprise situations. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion. The reader is cautioned to not place undue reliance on any forward-looking data. The forward-looking statements contained on this information launch are made as of the date of this information launch. Besides as required by legislation, the Firm disclaims any intention and assumes no obligation to replace or revise any forward-looking statements, whether or not on account of new data, future occasions, or in any other case. Moreover, the Firm undertakes no obligation to touch upon the expectations of or statements made by third events in respect of the issues mentioned above.

DMG Blockchain Options Inc.
Consolidated Statements of Loss and Complete Loss
(Expressed in Canadian {Dollars})

DMG Blockchain Options Inc.
Consolidated Statements of Monetary Place
(Expressed in Canadian {Dollars})

DMG Blockchain Options Inc.
Consolidated Statements of Money Flows
(Expressed in Canadian {Dollars})