DMG Provides Overview and Business Outlook for 2021

VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, is pleased to provide its shareholders with its business outlook for 2021.

Not since late 2018 has the general crypto industry attracted so much attention; however, this new bull run is decidedly different from the past as institutions such as Paypal, BlackRock, and AllianceBernstein are all taking positions, predominantly in Bitcoin. With institutional investors driving crypto forward instead of retail, as it was in 2017 and 2018, it is anticipated that governments and regulators are not far behind. In order for the economic scale which institutional investors bring, financial compliance must go hand-in-hand. DMG’s previous acquisition of Blockseer is focused on compliance and good governance, putting it at the forefront of DMG’s 2021-2022 growth strategy, along with its core crypto mining operations and third-party hosting services.

Many DMG shareholders may not realize that DMG is not just a crypto mining company. Rather, it is a full-service, vertically integrated blockchain company. DMG possesses core assets that begin with its 85MW power substation and 27,000 sq. ft. data centre in British Columbia, Canada. DMG’s Mine Manager software optimizes mining operations, and DMG’s Blockseer Pool was created to meet the U.S. Government’s Office of Foreign Assets Control (OFAC) compliance for Bitcoin addresses, as well as providing the utmost level of transparency, auditability, and corporate governance. DMG plans to monetize this cryptocurrency pool in partnership with Marathon Patent Group Inc. and other potential large scale mining companies. DMG’s vertical integration will continue with the release of additional software products built upon the Blockseer brand, which are focused on bringing its clients deeper into DMG’s value-added services beyond the Company’s core crypto mining operations.  

DMG’s Development Plans for 2021

In order to position the Company for anticipated future changes within the cryptocurrency industry in general and the Bitcoin mining industry in particular, DMG’s management is actively involved in further developing its corporate growth strategy and adjusting it to the ever-changing market environment, aiming at becoming one of the leading innovation forces in this market. Therefore, the following recent corporate developments and efforts are the foundation of this long-term and profit-oriented strategy for growth:

Focusing on DMG’s Core Business – Christina Lake Data Center
DMG’s 2021 focus for its Christina Lake crypto mining operations is to complete its previously announced retrofitting from air to immersion cooling, increasing both its hosting and self-mining operations, as well as to provide DMG flexibility in managing capital expenditures.

Christina Lake Data Center – Immersion Retrofitting
Prototyping and testing of immersion has shown miner hashing rates increase up to 30{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}, allowing for significant reductions in the number of miners running for the same hashing performance. With the rising price and supply shortages of crypto miners, having the capital to deploy is just as important as deploying in immersion cooling to ensure mining performance is optimized for every dollar spent. Immersion cooling is not only reducing the number of miners needed to reach hashrate goals, but also extending the life of these assets and conserving the power used to run air cooling fans. DMG will provide further updates on this immersion cooling technology in the future after further testing is completed.

DMG will continue its testing in Q1 2021 as it begins major retrofitting of the data center from air cooling to immersion cooling. Through focusing on engineering, DMG will not need to alter the existing low voltage infrastructure used in air cooing. Instead, it will use the same footprint and incorporate immersion cooling tanks and piping, which are expected to save significantly on retrofitting costs and shorten time lines substantially.

“Our future crypto mining efficiency will be extraordinarily high, as we combine immersion cooling with Blockseer’s Mine Manager automation and DMG’s seasoned technical team operating the Christina Lake Data Center. I believe DMG will be challenging the crypto industry in the hashrate we will be producing relative to our power consumption and operational costs,” said DMG’s CTO, Adrian Glover. “For example, if any given number of miners would generate 1,000 petahash without immersion cooling, DMG is going to be able to realize at least 1,300 petahash from the exact same set of miners by implementing our immersion cooling technology.”

With the move to immersion cooling, DMG aims to maximize its revenue on future self-mining as well as be able to charge a premium for hosted clients who would prefer the advantages of immersion cooling without the added capital cost of constructing themselves.

Christina Lake Data Center – Self Mining
DMG’s self-mining operations have benefited from continued growth in Bitcoin value, allowing for increased profitability from older mining equipment. This has allowed sustained profitable mining operations as DMG transitions into immersion with next generation mining technologies. As the supply of the newest generation Bitcoin mining equipment will be crucial for DMG’s future growth, DMG is continuing to work closely with leading miner manufacturers and component manufacturers of chips, boards and tanks. DMG intends to announce further contractual equipment and development details shortly.

The Christina Lake Data Center, an 85-megawatt substation with a 27,000 square foot data center, resides in the Company’s wholly-owned debt-free building on a 33 acre property. DMG’s investment in this infrastructure allows the company to pivot between self-mining and hosting for third parties. This flexibility allows DMG to control capital costs when needed, and also take advantage of the most profitable revenue streams as they change over time between hosting and self-mining.

The Company expects the COVID-19 pandemic to affect the availability and timing of mining equipment, including increased costs from shipping. If additional mining equipment is purchased for the Company’s Christina Lake Facility, the Company expects longer than normal delivery times from the various equipment manufacturers and suppliers. In addition, depending on the number of additional Bitcoin mining rigs purchased by the Company, additional capital may be required.

Reaching DMG’s Goal to be a Vertically Integrated Blockchain Company – Blockseer
In early 2018, DMG acquired Datient, Inc., the Silicon Valley-based creator of Blockseer and Walletscore. The acquisition was a strategic move based on the future of compliance and good governance in the cryptocurrency space. Blockseer highlights DMG’s foresight in ensuring the Company develops the right technology at the right time, not only to participate but to have the products and technology ready to unlock adoption through regulatory compliance.

Blockseer – Software Focused on Safety & Security & Regulatory & Compliance
Over the last two years, the Blockseer team has focused on strategically targeting the progression of the crypto industry and how Blockseer can ensure its blockchain data will create industry needed products. Recent changes, along with institutional interest moving into Bitcoin, as discussed above, and the regulatory announcements from the Office of the Comptroller of Currency (OCC) show that this is both a rapidly developing and cutting-edge space. This message has been echoed by nominated Secretary of the Treasury J. Yellen, looking to prevent illicit transactions in the Bitcoin network. Fortunately, Blockseer is well positioned to help pioneer this industry with our first two products (Explorer and Walletscore) which allow users to be properly informed, aware and protected in an otherwise often grey space. Expanding on Explorer and Walletscore, Blockseer launched its Pool platform which will be integrated with Blockseer’s Mine Manager, as one unified platform.

A review of Blockseer’s products are as follows:

Blockseer: Safety & Security Platform

Blockseer Explorer (sometimes referred to as Intelligence) is an analytics tool that enables tracking cryptocurrency on both the Bitcoin and Ethereum blockchains.

Blockseer: Regulatory & Compliance Platforms

Blockseer Walletscore measures the propensity of a crypto-wallet to engage in criminal activity.

Blockseer Pool is the North American-based Bitcoin mining pool, providing real-time AML and bringing in a new standard in mining compliance and governance. In late 2020, DMG announced that its U.S. subsidiary Blockseer was launching a North American-based Bitcoin mining pool focused on governance, compliance, clean blocks, and audit-ready reporting for its users.

Blockseer Mine Manager is software which tracks mining facilities’ performance. The software provides automated management of crypto mining data centers and remote container deployments.

“This is not about a fundamental change of the network, nor a Bitcoin revolution, and we are absolutely not de-anonymizing Bitcoin, but we need to be prepared for continuing technological development and regulatory adjustment of the Bitcoin network as it needs oversight to satisfy both major institutional investors and official regulators,” said DMG’s COO, Sheldon Bennett. “At DMG we are totally committed to continuously support and enhance the global Bitcoin network, and at the same time we are convinced that the future of Bitcoin’s rapidly increasing mass adoption lies in regulatory compliance and market adoption as this great cryptocurrency invention cannot and should not be abused by criminals and terrorists or confined to the darkest corners of the internet. Bitcoin is a growing asset class and in order for Bitcoin to be adopted by large institutions and be accepted by regulators, enhanced mining pools will be needed.”

DMG is excited that this new product caught the attention of major North American miners, leading DMG to a new partnership.

DCMNA – A New Partnership

Recently DMG entered into a memorandum of understanding (“MOU”) with Marathon Patent Group (NASDAQ: MARA) which then registered and created a 501c4 Non-Profit named the Digital Currency Miners of North America ( www.DCMNA.org ). The DCMNA intends to license Blockseer’s Bitcoin mining Pool software, a proprietary product created by DMG’s U.S. subsidiary. The organization’s principal initiative is to create North America’s first cooperative Bitcoin mining pool so all its members can take advantage of a cooperative network structure. Some key highlights include:

  • DCMNA’s Inaugural Chairman is Merrick Okamoto, Executive Chairman of Marathon Patent Group Inc. (NASDAQ: MARA), one of the world’s largest and leading Digital Currency Mining companies.
  • DCMNA will lobby for beneficial changes and policies in North America for crypto mining. Financing of these efforts will be through a small percentage of pool fees allocated to its governing Committee.
  • DCMNA enables its members to meet Anti Money Laundering (AML) and Office of Foreign Assets Control (OFAC) compliance through licensing Blockseer’s Pool which will include Blockseer’s Walletscore technology.
  • As the Pool is a cooperative it will rebate all users based on hashrate contribution to help with subsidizing pool fees and increasing miner profitability
  • As a member service organization, the DCMNA will continue to engage DMG’s Blockseer for continued improvements to software, products, and creating more incentives for DCMNA Members. Other member suggestions and products which benefit North American miners will be reviewed for inclusion as well.

DMG believes that the path to large scale global adoption for digital assets is vastly improved through mainstream adoption, from retail to institutional participants. This process has begun, and it is imperative that all participants ensure they meet current guidelines, regulations, and reporting criteria. Blockseer leads DMG’s efforts to develop a vertically integrated blockchain company where compliance is the key to bridging the transition of cryptocurrencies to mainstream adoption.

See DMG’s news release dated January 5, 2021 for further information on the planned DCMNA.

Terms of the MOU with Marathon include DMG licensing Blockseer’s technology and associated intellectual property to DCMNA, as well as the management of pool operations. Upon completion of a definitive agreement, detailed terms and conditions will be provided in an upcoming news release. Pool operations are expected to commence shortly after entering into a definitive agreement.

“DMG, as a vertically integrated Blockchain company, focuses on all aspects of the Bitcoin blockchain beginning at the mining ecosystem, through to securing the blockchain and processing Bitcoin transactions. Our business divisions include self-mining, hosting third party clients, development and deployment of software products such as Blockseer’s Mine Manager to manage mining operations, as well as the recent launch of Blockseer’s Pool, which aggregates Bitcoin mining hashrates and connects them to the Bitcoin protocol,” said DMG’s CEO, Dan Reitzik.

For more information on DMG Blockchain Solutions visit:  www.dmgblockchain.com

On behalf of the Board of Directors,

Daniel Reitzik, CEO & Director

For further information, please contact:

DMG Blockchain Solutions Inc.
Email: [email protected]
Web:  www.dmgblockchain.com   

About DMG Blockchain Solutions Inc.

DMG is a vertically-integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG’s businesses are segmented into three main divisions: data centre operations, data analytics and forensics and developing enterprise blockchains. DMG’s data centre operations focus on earning revenues from block rewards and transaction fees by mining primarily bitcoin, as well as providing hosting services for industrial mining clients. DMG’s data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms, and law enforcement organizations. DMG’s permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG’s strategy is to become the domain expert across the business verticals it focuses on. DMG’s management team includes seasoned crypto experts, forensic & financial professionals and blockchain developers with deep relationships throughout the industry.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information based on current expectations. Statements about the Company’s plans for the potential establishment of its strategic long-term plans, its DCMNA pool and definitive agreement, to increase petahash (PH) by self-mining, acquiring additional bitcoin mining machines, raising additional capital, utilizing the whole Christina Lake Facility, the potential of the immersion cooling technology, the expected positive outlook for the cryptocurrency and blockchain industries, price of bitcoin, plans and intentions, software development plans, other potential transactions, acquisition of customers, product development, 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 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, 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.

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 COVID-19 or other viruses and diseases on the Company’s ability to operate, secure equipment, and hire personnel, decrease in the price of Bitcoin and other cryptocurrencies, 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, increase in operating costs, increase in equipment and labor costs, 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.

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.

Rachel C. Carpenter

Next Post

Louis Eco-friendly Joins UBS as a Monetary Advisor in New York

Fri Jan 22 , 2021
Press launch material from Business Wire. The AP information staff was not involved in its generation. https://apnews.com/press-launch/enterprise-wire/business enterprise-new-york-north-america-new-york-town-financial investment-administration-ff14b83418ff4b85b05ecc1e8bc05ecb Simply click to copy NEW YORK–(Business WIRE)–Jan 21, 2021– UBS Wealth Management United states introduced today that Louis Environmentally friendly has joined the firm as a Monetary Advisor in the 1285 […]