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VANCOUVER, British Columbia, March 02, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company is pleased to announce that Ecopwrs LLC ("Ecopwrs") from Wyoming, USA has selected DMG to lead the development and management of its Bitcoin mining operations in the Permian Basin of the United States.
This initial project will be for 25 MW of flare gas converted for use in Bitcoin mining. Ecopwrs reduces natural gas flaring by using gas to generate electric power and operate Bitcoin mining servers at well sites. This low-cost power improves margins for Bitcoin mining while reducing carbon emissions at Ecopwrs’ sites in the Permian Basin of Texas and New Mexico, which will be developed, in cooperation with DMG, as the exclusive Bitcoin mining operator.
DMG and Ecopwrs executed a Memorandum of Understanding (“MOU”) for DMG to develop and manage Ecopwrs' initial minimum capacity of 25 MW (approximately 400 PH/s) of containerized crypto mining utilizing flare gas in the Permian Basin of Texas. DMG will help manufacture, deliver, commission and manage specialized crypto mining containers in traditional air-cooled units with plans to upgrade to DMG’s forthcoming immersion cooling systems at a later point. Pursuant to the MOU, DMG will also have the right to purchase an initial equity stake of up to 12.5% in Ecopwrs in order to become a strategic long-term anchor investor in this new venture.
Furthermore, DMG will operate the entire 25 MW of Bitcoin mining using its proprietary Mine Manager software, as well as manage the operation’s hashrate using its Blockseer Bitcoin mining pool. A separate third party technology partner will supply the mining hardware for Ecopwrs, which DMG will operate at these sites.
The initial 25 MW represents the first project phase, with four more phases identified, which will provide an additional capacity of 100 MW for DMG to build and operate (totaling 125 MW). Based on the planned hash rate of third party equipment, each 25 MW project would represent a minimum hashrate of approximately 400 PH/s.
“The sites will be powered by recovering and using wasted natural gas at current gas flaring and gas processing sites, allowing Ecopwrs to generate electricity for the Bitcoin mining operations at a very low cost,” said Ecopwrs’ CEO John Heffernan. “It’s important to note that electricity is the largest factor determining profitability in Bitcoin mining, and Ecopwrs' waste gas-based generation will place the production cost for ourselves and our partner DMG among the lowest of all global Bitcoin miners.”
The initial phase of Ecopwrs operations will be deployed across five sites and produce approximately 25 megawatts of energy for the new Bitcoin mining facility to be operated by DMG. Ecopwrs expects its first site will be operational within 75 - 120 days from funding and will generate revenue for DMG from day one of Bitcoin mining operations. Ecopwrs’ overall business plan is to deploy approximately 25 sites, and DMG will be the exclusive Bitcoin mining operator for all sites.
Ecopwrs has lined up several energy exploration and production (“E&P”) companies as customers and partners for Ecopwrs’ and DMG’s service offering, and their principals’ relationships provide trusted access with an additional 20 E&Ps in the Permian Basin, laying the groundwork for an even larger capacity within the next 24 months. These prospective partners have flare gas mitigation requirements, representing many times the capacity needed to execute Ecopwrs’ operating plan as agreed in the MoU with DMG.
“DMG is focused on continuously growing its Bitcoin mining operations, as we are fully convinced that cryptocurrencies in general, and Bitcoin in particular, have tremendous potential for both short- and long-term growth,” said DMG’s COO, Sheldon Bennett. “DMG is proud to expand its large-scale Bitcoin mining operations into the U.S. as we continue to create energy-efficient Bitcoin mining solutions wherever we operate.”
The development of the Bitcoin mining operations for Ecopwrs is subject to certain conditions including, but not limited to, Ecopwrs having sufficient funds to complete the purchase of Bitcoin equipment and infrastructure, securing contracts from E&P companies, and the execution of a definitive contract setting forth the specific terms and conditions with DMG. DMG and Ecopwrs expect COVID-19 to affect the availability and timing of mining equipment and containers.
DMG also announces that it is working to meet its self-mining deployment targets at its Canadian 85 MW Christina Lake facility. Currently the Christina Lake team will be deploying up to 1,000 miners in the coming weeks in line with infrastructure upgrades as they come online.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hashrate may materially affect the future performance of DMG’s production of Bitcoin, and future operational results could also be materially affected by the price of Bitcoin and an increase in hashrate mining difficulty.
About Ecopwrs LLC
Ecopwrs reduces natural gas flaring by using gas to generate electric power and operate Bitcoin mining servers at well sites. This low-cost power enables highly profitable Bitcoin production while reducing carbon emissions and mitigating other environmental impacts. Ecopwrs LLC was built from the ground up to solve these problems in a clever and ground-breaking way, which will not only help the environment but provide a new low-cost means for mining Bitcoin. The sites will be powered by recovering and using wasted natural gas at current gas flaring and gas processing sites in the Permian Basin of Texas and New Mexico.
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 experts 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.
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.
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 based on current expectations. Statements about the Company’s the MoU with Ecopwrs and the expected developments from that business arrangement and the related definitive agreement, DMG purchasing an equity stake in Ecopwrs, DMG's development of immersion cooling systems, DMG's deployment of additional miners and the increase petahash (PH) by self-mining, infrastructure upgrades, price of bitcoin, plans and intentions, 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, 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, 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.