VANCOUVER, British Columbia, July 20, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FSE: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, announces an investment in Black Box Manufacturing Inc (Black Box), a Vancouver, BC-based manufacturing company that specializes in the design and manufacture of electrical and mechanical enclosures for multiple industries including crypto mining.
DMG has made a $30K passive investment for a 15% equity position, with future rights to increase or exit. This enables DMG access to faster manufacturing lead times, fixed pricing on projects in addition to free engineering expertise and design. Combining DMG’s lengthy experience in crypto mining with Black Box’s custom electrical and mechanical engineering abilities, the combination offers infrastructure building and end-to-end services for various crypto mining operations. Components are manufactured in the Greater Vancouver area primarily for the North America market.
DMG’s Investment Strategy
This investment empowers DMG to manufacture almost 100% of its mining infrastructure locally, including its planned conversion to immersion cooling systems at its 80 MW Christina Lake data centre. This investment also enables DMG to supply mining infrastructure to other crypto mining operations throughout North America and is consistent with DMG’s vertical integration strategy of monetizing the blockchain ecosystem through maintaining control of its base level manufacturing needs.
DMG’s initial order is for approximately 450 of its custom power channels. These additional power channels create 10,800 spaces for the newest generation ASIC bitcoin miners. DMG will also be ordering up to 15 forty-foot containers to be manufactured following DMG’s one megawatt air cooled crypto mining container design. Following this order DMG will focus on immersion cooling retrofitting orders, as well as client orders for crypto equipment, most of which are expected to be crypto mining containers. Once DMG’s engineering and related supply chain order fulfillments are completed, Black Box will also lead DMG’s planned solar panel deployment at its 80 MW Christina Lake facility.
“By direct investment in a local Vancouver manufacturing company, DMG will be able to execute more efficiently on its robust growth plans, confident that it can rely on Black Box to not only manufacture, but also to project manage, design and install,” commented Sheldon Bennett, DMG’s CEO. “This new partnership is key to our growth strategy as we are looking to add more crypto mining locations - especially with the new uptake in requests for assistance coming out of Asia.”
About Black Box
Black Box Manufacturing Inc is an industrial manufacturing firm specializing in prefabricated metal enclosures located in the Greater Vancouver Regional District, BC. Black Box offers the design and manufacture of industrial, or people use modular metal buildings and components. Their typical products include, Crypto Mining Enclosures and Transformer Skids, Electrical Control and Distribution enclosures, Process Enclosures, Operator Cabins, Modified Containers, and Generator sets.
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 three main divisions: data centre operations, data analytics and forensics and developing enterprise blockchains.
For more information, we encourage you to visit the DMG website here to learn more about our company. Follow @dmgblockchain on Twitter and subscribe to DMG's YouTube channel.
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.
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
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. Forward-looking statements contained in this news release include statements regarding the expectations of the relationships and integration with Black Box Manufacturing Inc (Black Box) and the benefits therefrom, the development of its Core strategy, the ability to enter the market sooner than anticipated with certain 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, 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.
All information in this new release concerning Black Box Manufacturing Inc (Black Box) has been provided for inclusion herein by Black Box Manufacturing Inc (Black Box). Although DMG has no knowledge that would indicate that any information contained herein concerning Black Box Manufacturing Inc (Black Box) is untrue or incomplete, DMG assumes no responsibility for the accuracy or completeness of any such information.