VANCOUVER, British Columbia, May 12, 2020 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (DMGI.V) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and technology company, is pleased to announce a positive corporate outlook for the next few months.
Bitcoin Halving Event
Bitcoin's next halving is upon us, and trading volumes indicate an all-time high level of interest in this important event, the third in the short lifespan of the world’s original and most valuable cryptocurrency. In general, DMG expects that the halving will be a bullish catalyst for Bitcoin’s price, which is supported by even stronger macroeconomic catalysts, including unprecedented central bank monetary policies, that may drive Bitcoin’s price in the coming months and years.
Dan Reitzik, DMG’s CEO, commented: “One of the reasons Bitcoin was created was to combat increasing inflation, driven by issuing more and more fiat currency. This is the reason ‘halvings’ occur every 4 years, to reduce the supply of new bitcoin created over time, leading to deflation. DMG sees a tremendous upside opportunity for Bitcoin price increases and subsequently for the Company’s, and our clients’ profitability in both the near and long term.”
Bitcoin halving events occur every four years when block rewards paid to Bitcoin miners are cut by 50%. The current block reward of 12.5 BTC will be reduced to 6.25 BTC today. Market data suggests market participants may see increased demand in the form of diverted mining resources, in addition to the reduction in new BTC supply after the halving, which might significantly support the Bitcoin price.
Sheldon Bennett, DMG’s COO added: “DMG invested substantial capital in building its state-of-the-art mining facility and its related power infrastructure as well as attracting long term hosting clients. As a consequence, DMG is very well positioned for future growth and our management team remains extremely excited about the prospects DMG has, both as a hosting company and as a software company, focusing on the rapidly growing cryptocurrency vertical market, including software and services.”
New Mining Overview
Today DMG released a new mining overview about the Company’s successful institutional-grade Bitcoin mining business activities and promising growth prospects which can be accessed at DMG’s website at www.dmgblockchain.com/mining2020. Highlights of DMG’s new mining overview include:
To discuss DMG’s new mining overview with its shareholders, the Company will host an investor presentation for its shareholders on Wednesday, May 20, 2020. DMG’s investor presentation is scheduled to be at 9:00 a.m. PST, and DMG’s CEO Dan Reitzik, COO Sheldon Bennett, and CTO Adrian Glover will provide a more detailed business update. To join the call, please visit DMG’s website at www.dmgblockchain.com, where the Company will publish the required conference link 72 hours before the investor conference call. Please call-in approximately 10 minutes in advance to participate in the live call. Alternatively, individual and institutional investors will have the opportunity to listen to the conference call afterwards by accessing an archived version of the call on the Company’s website. DMG looks forward to everyone’s participation in this conference call, and please call DMG’s John Martin at 888-702-0258 (toll free) with any questions regarding the call.
Expansion of Business Development
A year and a half ago DMG’s substation was commissioned and its flagship data centre opened. Now with a track record of industry high operating uptime and time for the team to troubleshoot bringing such a large facility on-line, DMG is focusing on expanding its mining and developing more business with third parties. DMG’s core business will continue to be its crypto mining efforts as well as Mining as a Service; however, DMG is also, as announced earlier this year, moving to immersion cooling which is attracting new clients (who are not necessarily focused on crypto assets) as well as additional clients who are early adopters in large scale immersion. Along with immersion, DMG is planning a commercial release of its crypto mining software, which is already under license for a select number of companies testing the software. So far the reviews have been positive and with client input, DMG is adding features before its planned commercial release later this year.
Over the last half year DMG has also been consulting to other mining companies on its technology, supply chain and design for crypto facilities. This service is growing and DMG plans to increase this consulting service to include the sale of proprietary equipment that it designs and uses for operations. The Company is already in negotiations with multiple parties on its container solutions for remote areas but is also adding to its sales racking, power channels and cooling systems.
To support this expansive growth strategy, DMG entered into a business development agreement with Onyx Capital from Europe, which will be responsible to advise DMG’s management in its global growth initiative and business development efforts.
DMG’s CEO Dan Reitzik added: “We are very excited to ramp-up our international business expansion and continue our constant growth, and we are extremely confident that DMG is very well positioned for the post-halving time ahead of us. DMG made a wise decision to have a blended model of self-mining and hosting for third party clients. This focus on attracting large scale hosting clients and expanding and upgrading our self-mining fleet is because successful crypto-mining is a function of creating cost efficiencies, and our mining facility is very well suited for both our self-mining and for large industrial miners. We welcome Onyx as our business development partners and new shareholders.”
On March 13, 2020, DMG announced that it had fully implemented its Work from Home (“WFH”) initiative to further protect its office employees and the general public, in response to the Covid-19 pandemic. This was successfully implemented and continues to remain in effect. DMG has always allowed its software engineers to work remotely as necessary, and all employees are experienced with the various remote collaboration software tools the Company utilizes daily. DMG’s proprietary mine management software is fully deployed allowing its technicians to remotely monitor the operations such as hash rates, temperature, power consumption, performance, etc. If repairs are needed, staff at the facility are notified of the issue and what is needed to be done for repairs so they can take the necessary action. The data centre is approximately 27,000 square feet and therefore employees have substantial personal space and distancing from one another. DMG has now started to prepare to make this WFH initiative also available and applicable for several forthcoming new projects and further business developments, both domestically and internationally, allowing the Company to continue its growth ultimately unaffected by the global Covid-19 pandemic.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
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 and intentions, other potential transactions, adding additional power capacity, entering into new marketplaces, providing container solutions to clients, expectations from the halving event, price of Bitcoin, 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 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, 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.