DMG Blockchain Solutions Announces Preliminary December Mining Results and Year in Review

Press Release

VANCOUVER, British Columbia, Jan. 06, 2025 — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and data center technology company, today announces its preliminary mining results for December 2024.

Bitcoin Mined: 32 BTC
Hashrate: 1.68 EH/s
Bitcoin Holdings: 406 BTC

For the December 2024 quarter, DMG mined 97 bitcoin with an average hashrate of 1.62 EH/s and a fleet efficiency of 23 J/TH.

“DMG’s CEO, Sheldon Bennett commented, “December capped a significantly stronger quarter versus the prior quarter, as DMG mined approximately 50% more bitcoin at a greater fleet efficiency. We are now focused on expanding our hashrate to 2.1 EH/s in the current quarter based on utilizing leading edge hydro direct liquid cooling (DLC) technology. We expect to energize our first hydro container in the current month and the remaining five containers in the current quarter.”

As this is DMG’s first press release of calendar 2025, we would like to use this opportunity to reflect on our accomplishments over the past 12 months and lay out our vision for what we expect to achieve in the next 12 months.

Key Accomplishments over the Past Year and Coming Year Goals

Bitcoin Mining – grew hashrate more than 70% from less than 1 EH/s in Jan-Sep 2024 and exited calendar 2024 with 1.72 EH/s with a fleet efficiency of 23 J/TH
- Purchased hydro Bitcoin mining equipment to grow to 2.1 EH/s with an expected fleet efficiency of 21 J/TH in early calendar 2025
- Goal to grow to 3 EH/s in calendar 2025
Generative Artificial Intelligence (Gen AI) – executed memo of understanding (MOU) with the Malahat Nation to build 30 megawatts of Gen AI compute capacity
- Working towards a definitive agreement in conjunction with setting up offtake agreements and execution partners
Systemic Trust – executed software platform and achieved regulatory milestones towards becoming a qualified custodian in early calendar 2025
- Focus on customer acquisition and platform expansion beyond custody in calendar 2025
Terra Pool – rebuilt software to utilize the same enterprise-grade best practices as for Systemic Trust to ensure the best possible client experience and enable our carbon neutral Bitcoin ecosystem
- Focus on customer acquisition and integration of Reactor in calendar 2025
Reactor software platform acquired – purchased from Navier in October 2024 for assuring the delivery of hashrate over the term of a hashrate contract
Helm – rebuilding the software to be a Bitcoin Data Center Infrastructure Management (DCIM) tool, with a focus on supporting next generation fleets, optimizing operation and working with demand response programs
- Released the first version for internal use in December 2024
- Goal to build a powerful Bitcoin DCIM tool for Terra Pool clients in calendar 2025

Capital Raising over the Past Year

Over the past 12 months, DMG has utilized a USD $19 million loan facility from Sygnum Bank, for which it is utilizing 295 bitcoin as collateral and has drawn USD $9.4 million as of September 30, 2024. DMG has utilized its loan facility primarily for capital expenditures including the purchase of its 4,550 Bitmain T21 miners, which have expanded its hashrate by 0.9 EH/s, as well as subsequent capital purchases. DMG’s bitcoin collateral could enable it to draw most or all of the loan facility amount at current bitcoin prices. In addition, in November 2024, the Company raised CAD $17.3 million in share equity, with the proceeds used for purchasing its 6-megawatt hydro Bitcoin mining fleet to expand its hashrate by 0.4 EH/s as well as other corporate purposes. The Company’s ability to raise capital has enabled it to remain competitive in Bitcoin mining while positioning itself to capitalize on its Gen AI opportunities, all the while advancing its software and services initiatives.

Our Vision for the Coming Year

This past year has been transformational for DMG, as we executed the enabling software for the two key elements of our carbon neutral Bitcoin ecosystem – Systemic Trust and Terra Pool. Accordingly, we are very encouraged that calendar 2025 becomes the breakout year for our Core+ strategy. We are now making a transition from development to a focus on customer acquisition and operational execution going forward.

We expect Gen AI to become a major driver of our Core strategy over the next several years. We will be devoting significant resources and capital to realize our opportunity with the Malahat Nation while simultaneously looking to make this a pan-Canadian effort among multiple indigenous bands. We will be leveraging our unique relationships while capitalizing on this special time in the data center industry to be part of the growth of tens of gigawatts of Gen AI data centers being built throughout North America over the next several years.

Bitcoin mining will remain foundational to our Core strategy. Bitcoin mining is less than one-tenth the capital intensity of Gen AI, can be deployed in one-third the time and has a payback period that is typically one-half to one-third the time; we are agnostic between the two technology types as to how we maximize returns, and we see a role for both technologies to be utilized, even at the same data center site. Bitcoin mining achieves faster time to revenue, while Gen AI can be layered in more gradually as multi-year offtake agreements are established.

While we have made great progress over the past year and have done so in a capital efficient manner, we have much to deliver in the coming year. We appreciate and value your continued support.

About DMG Blockchain Solutions Inc.

DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. 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: www.dmgblockchain.com
Follow @dmgblockchain on X, LinkedIn, Facebook and subscribe to DMG’s YouTube channel.

For further information, please contact:

On behalf of the Board of Directors,

Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com

For Investor Relations:
investors@dmgblockchain.com

For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.com

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