VANCOUVER, British Columbia, Sept. 23, 2020 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and technology company, is pleased to announce that the Company has received an energy export license from the U.S. Department of Energy.
DMG’s new US Export License extends DMG’s ability to purchase across United States, specifically Washington State, the closest non-Canadian wholesale marketplace
DMG’s new US Export License is a significant part of DMG’s over all operational strategy of power and infrastructure independence
Prior to DMG becoming a public company, its operating location was in Edmonton, Alberta, where DMG purchased power from Alberta’s deregulated market to obtain the best wholesale price of power before distribution and utility charges. In order to scale and seek long-term energy savings, DMG’s management recognized the need to be energy independent from the onset. This led to owning our own power assets for industrial mining, accessing power from either utilities or wholesale markets, and ensuring revenue diversification in both self-mining and hosting. Crypto-mining, distributed computing hosting and new areas such as computational rendering and artificial intelligence require substantial energy, and profitability is proportionally related to power costs and operational uptime. DMG, at its current location, and based on the availability to access 85MW, is achieving the Company’s overall energy strategy. Low cost energy sourcing, power asset ownership, operational excellence in uptime, as well as ensuring that DMG’s operations do not impact the local power grid and the local community are all being realized.
DMG’s CEO Dan Reitzik commented, “DMG has worked diligently over the past four years to develop our unique power strategy. Over the years, strong support and endorsement has been given by local government and business leaders, as well as by our current utility power provider, FortisBC. We are excited to have been successful in obtaining a power export license from the US Department of Energy and will continue working on DMG's power strategy to ensure that DMG is able to access the most reliable and cost-effective power from either Canada or the United States.”
DMG’s COO Sheldon Bennett added, “Our power strategy included building and commissioning our private substation with a goal to access wholesale power from the onset. Not only can purchasing power on the open market significantly reduce DMG’s energy costs, but it also minimizes the risk of price rises due to DMG’s operations on the local utility’s rate payers. With the Export Permit completed, DMG can now focus on the Province of British Columbia’s regulations on open access transmission and BC Hydro’s regulations for utilizing their system, which is needed to access power outside the Province. Currently, DMG is working through changes in the regulations that recently occurred.”
About DMG Blockchain Solutions Inc.
DMG is a diversified cryptocurrency and blockchain platform company that is focused on the two primary opportunities in the sector – mining public blockchains and applying permissioned blockchain technology. DMG focuses on mining bitcoin, providing hosting services for industrial mining clients, earning revenues from block rewards and transaction fees, developing data analytics and forensic software products, working with auditors, law firms, and law enforcement to provide technical expertise. 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, with previous experience working at Bitfury, PwC, EY, Cisco and UBS.
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.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans to obtain the necessary approvals the from BC authorities, 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, 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.