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Conference Call to Review Results to be Held June 3, 2022 at 4:05 PM ET
VANCOUVER, British Columbia, June 02, 2022 (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 report its Q2 2022 filings for the quarter ended March 31, 2022 (all financial references are in Canadian Dollars unless specified otherwise). The Company will also hold a corporate update conference call on June 3, 2022 at 4:05 PM ET.
Increased quarterly revenues to $11.9M, up 377% from same period a year ago
Increased EPS to $0.03 per share for six months ending March 31, up from (0.01) loss per share for the same period a year ago
372 BTC held as of March 31, 2022
Strong balance sheet with $125M in total assets as of March 31, 2022
Hashrate increased to 595 PH/s as of March 31, 2022
Financial Summary for the Quarter ended March 31, 2022
DMG’s second quarter of its 2022 financial year showed continued strength despite headwinds of a simultaneous decline in bitcoin pricing and increase in the network hash rate. The Company generated revenue of $11.9 million, up 377% year over year and down 17% quarter over quarter. This sequential decline was due mainly to a bitcoin price decline of 26% (quarter average vs prior quarter average) to $52,374 combined with an increase in the Bitcoin network hashrate of 20% (quarter average vs prior quarter average) to 194.0 EH/s partly offset by a 40% increase in the Company’s average hash rate to 491 PH/s (quarter ending hashrate was 595 PH/s). This also resulted in a decline in gross margin percentage to 73% from 81% the prior quarter. For the six-month financial period through March 31, 2022, gross profit and net income were $20.2 million and $5.1 million, respectively.
The substantial year over year increase in six-month period revenue also resulted in the Company’s strongest operating income to date of $6.8 million as compared to a loss of $2.1 million in the prior year period. As of March 31, 2022, the Company held $6.3 million in cash and $21.8 million in digital assets (primarily bitcoin) for total cash and cash equivalent liquidity of $28.1 million.
DMG’s BTC mining production was the highest of any quarter due to the arrival of new miners. DMG achieved monthly BTC rewards production numbers of 65, 59 and 72 BTC in January, February and March, respectively, for a total of 196 BTC in the quarter, an increase of 7% quarter over quarter.
“We are excited about our opportunity in calendar 2022; the Company continues toward its execution goals for its Core and Core+ strategies: powering 1-exahash of Bitcoin self-mining, launching Terra Pool to enable industrial miners beyond its charter members that seek to be on a 100% renewable energy pool, and delivering software products that enable the monetization of bitcoin transactions that meet the highest levels of regulatory compliance,” said Sheldon Bennett, Chief Executive Officer.
Readers are encouraged to review the Company’s complete Q2 2022 financial statements and management’s discussion and analysis thereof for a fulsome assessment of the Company’s performance and applicable risk factors, available at www.sedar.com.
Today the Company also announces that it will host a conference call to review second quarter 2022 financial results and provide a corporate update on June 3, 2022, at 4:05 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: 1-833-953-2438 (U.S. toll free), 1-412-317-5767 (international) or 1-866-450-4696 (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 September 3, 2022.
A telephonic replay of the call will be available through June 17, 2022, 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 3024833.
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 email@example.com using the subject line ‘Conference Call Question Submission’ through June 3, 2022, at 12:00 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: www.dmgblockchain.com
Follow @dmgblockchain on Twitter and subscribe to DMG's YouTube channel.
On behalf of the Board of Directors,
Sheldon Bennett, CEO and Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations Contact:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, Head of Public Relations
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, launching 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 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, market and other conditions, volatility in the trading price of the common shares of the Company, 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. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.SEDAR.com. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.
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, 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, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, decrease in the price of Bitcoin, 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.