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

VANCOUVER, British Columbia, Might 22, 2024 (GLOBE NEWSWIRE) — DMG Blockchain Options Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically built-in blockchain and knowledge middle expertise firm, right this moment pronounces its fiscal second quarter 2024 monetary outcomes. All monetary references are in Canadian {Dollars} until specified in any other case.

Q2 2024 Monetary Outcomes Highlights

• Q2 2024 income elevated 31% over the prior yr to $10M, pushed by self mining revenues growing 39%

• Web Revenue was barely constructive, sustaining 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 effectivity of 28.4 J/TH

• $4.5 million money circulation from operations, up 19% from the prior quarter

• Deploying Bitmain T21 miners with aim to succeed in 1.7 EH/s by the top of June, concentrating on 2 EH/s and past long term

• Sturdy steadiness sheet with $43.6M in money and digital foreign money, $118M in whole belongings

Sheldon Bennett, DMG Blockchain Options’ Chief Government Officer, commented, “We’re happy with our sturdy efficiency this quarter, reaching a 3% sequential income enhance to $10.0M and sustaining profitability for the second consecutive quarter. Our strategic investments in each our Core and Core+ methods are delivering promising outcomes. Systemic Belief is paving the way in which for monetary establishments to transact bitcoin in a carbon-neutral method, whereas the deployment of our Bitmain T21 miners positions us to realize 1.7 EH/s by the top of June with additional growth deliberate. Moreover, our sturdy money circulation from operations of $4.5M and a strong steadiness sheet with $43.6M in money and digital foreign money underscore our execution.”

Second Quarter 2024 Monetary Outcomes Overview

Income for the second fiscal quarter ending March 31, 2024 was $10.0 million versus $7.6 million within the prior yr interval, a rise of 31%, primarily as a result of enhance in digital foreign money mining revenues on account of bitcoin value growing 133% over the year-ago interval to a mean of $71,851 within the March quarter. This enhance was partially offset by a 93% enhance in Bitcoin community issue that lowered DMG’s bitcoin technology per EH/s by 47% from the identical interval final yr. As well as, income was additionally partially offset by a loss in web pool income of $1.3 million.

Revenue earlier than different gadgets for the three months ended March 31, 2024 was -$1.8 million versus -$4.6 million within the prior yr interval.

Working and upkeep prices for the three months ended March 31, 2024 had been $5.3 million as in comparison with $4.6 million in the identical quarter within the prior yr. The rise is attributed to utility bills, pushed by the growth of digital foreign money mining operations and the addition of recent miners.

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Web earnings for the three months ending March 31, 2024 was $2 thousand versus a lack of $3.8 million within the prior yr interval. The development in web earnings was pushed primarily by a rise in income of $10.0 million versus $7.6 million within the prior yr interval, unrealized revaluation acquire on digital foreign money, which was a acquire of $1.0 million versus zero within the prior yr interval in addition to realized acquire on sale of digital foreign money of $1.1 million versus $0.5 million within the year-ago interval. It was additionally pushed by decrease depreciation, which was $3.8 million versus $5.9 million within the prior yr interval. These had been partially offset by working and upkeep prices, which elevated by $0.7 million and common and administrative bills which elevated by $1.1 million over the prior yr.

Earnings per share for the second fiscal quarter ending March 31, 2024 was $0.00 versus -$0.02 within the prior yr interval.

As of March 31, 2024, the Firm had money of $1.6 million, digital foreign money of $42.0 million and whole belongings of $118.4 million. For extra particulars, please confer with the Company’s filings.

Readers are inspired to assessment the Firm’s March 31, 2024 quarterly unaudited monetary statements and administration’s dialogue and evaluation thereof for a fulsome evaluation of the Firm’s efficiency and relevant danger elements, accessible at www.sedarplus.ca.

DMG Blockchain Options Inc. Second Quarter 2024 Monetary Outcomes Convention Name

The Firm will host a convention name to assessment second quarter 2024 monetary outcomes and supply a company replace on Might  23, 2024 at 4:30 pm ET. Members are requested to pre-register for the decision by this link. Registered contributors will obtain a convention name weblink and dial-in info of their affirmation e mail.

As there will likely be no dwell Q&A session, administration will handle pre-submitted questions throughout the name. These wishing to submit a query might accomplish that through traders@dmgblockchain.com utilizing the topic line ‘Convention Name Query Submission’ by 2:00 pm ET on Might 23, 2024.

About DMG Blockchain Options Inc.

DMG is an environmentally pleasant vertically built-in blockchain and knowledge middle 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 underneath the Core and Core+ methods and unified by DMG’s vertical integration.

For extra info on DMG Blockchain Options go to: www.dmgblockchain.com
Observe @dmgblockchain on X and subscribe to DMG’s YouTube channel.

For additional info, please contact:

On behalf of the Board of Administrators,

Sheldon Bennett, CEO & Director
Tel: 516-222-2560
Electronic mail: investors@dmgblockchain.com
Net: 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 Trade nor its Regulation Service Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts accountability for the adequacy or accuracy of this information launch.

Cautionary Word Concerning Ahead-Trying Data

This information launch incorporates forward-looking info or statements based mostly on present expectations. Ahead-looking statements contained on this information launch embrace statements relating to DMG’s methods and plans, the anticipated enhance in realized hashrate, deploying Bitmain T21 miners to succeed in 1.7 EH/s by June 2024, concentrating on 2 EH/s and past, internet hosting the convention name, the deployment of recent capability, the anticipated arrival of recent miners, the anticipated timelines, the chance and plans to monetize bitcoin transactions, the continued funding in Bitcoin community software program infrastructure and purposes, creating and executing on the Firm’s services and products, growing self-mining, efforts to enhance the operation of its mining fleet, the launch of services and products, occasions, programs of motion, and the potential of the Firm’s expertise and operations, amongst others, are all forward-looking info.

Future modifications within the Bitcoin network-wide mining issue price or Bitcoin hash price might materially have an effect on the longer term efficiency of DMG’s manufacturing of bitcoin, and future working outcomes is also materially affected by the worth of bitcoin and a rise in hash price mining issue.

Ahead-looking statements include statements that aren’t purely historic, together with any statements relating to beliefs, plans, expectations, or intentions relating to the longer term. Such info can typically be recognized by way of forwarding-looking wording similar to “might”, “anticipate”, “estimate”, “anticipate”, “intend”, “imagine” and “proceed” or the detrimental thereof or comparable variations. The reader is cautioned that assumptions used within the preparation of any forward-looking info 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 elements, a lot of that are past the management of the Firm, together with however not restricted to, market and different circumstances, volatility within the buying and selling value of the widespread shares of the Firm, enterprise, financial and capital market circumstances; the power to handle working bills, which can adversely have an effect on the Firm’s monetary situation; the power to stay aggressive as different higher financed rivals develop and launch aggressive merchandise; regulatory uncertainties; entry to gear; market circumstances 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 clients, distributors and enterprise companions; the shortcoming so as to add extra energy to DMG’s services; DMG’s potential to efficiently outline, design and launch new merchandise in a well timed method that meet clients’ wants; the power to draw, retain and encourage certified personnel; competitors within the business; the affect of expertise modifications on the merchandise and business; failure to develop new and progressive merchandise; the power to efficiently keep and implement our mental property rights and defend third-party claims of infringement of their mental property rights; the affect of mental property litigation that would materially and adversely have an effect on the enterprise; the power 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 based mostly on quite a few assumptions relating to current and future enterprise methods and the setting through which the Firm will function sooner or later, together with the demand for its merchandise, the power 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 power to safe adequate capital to finish its enterprise plans, the power to realize targets and the worth 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-about extremely speculative as a result of nature of DMG’s enterprise. For additional info regarding these and different dangers and uncertainties, confer with the Firm’s filings on www.sedarplus.ca. As well as, DMG’s previous monetary efficiency might not be a dependable indicator of future efficiency.

Components that would 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, gear failures, lack of provide of apparatus, energy and infrastructure, failure to acquire any permits required to function the enterprise, the affect of expertise modifications on the business, the affect of viruses and ailments on the Firm’s potential to function, safe gear, and rent personnel, competitors, safety threats together with stolen bitcoins from DMG or its clients, shopper sentiment in direction of DMG’s merchandise, companies and blockchain expertise typically, failure to develop new and progressive merchandise, litigation, hostile climate or local weather occasions, enhance in working prices, enhance in gear and labor prices, gear failures, lower within the value of Bitcoin, failure of counterparties to carry out their contractual obligations, authorities rules, lack of key staff and consultants, and common financial, market or enterprise circumstances. 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 info. 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 info, 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.

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