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VANCOUVER, British Columbia, May 21, 2025 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) ("DMG" or the "Company"), a vertically integrated blockchain and data center technology company, today announces its fiscal second quarter 2025 financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company's March 31, 2025 quarterly unaudited financial statements and management's discussion and analysis thereof for an assessment of the Company's performance and applicable risk factors, available at www.sedarplus.ca.
Q2 2025 Financial Results Highlights
- Revenue: $12.6 million in Q2 2025, up 9% from $11.6 million in Q1 2025 and up 26% from $10.0 million in Q2 2024
- Bitcoin Mined: 91 bitcoin mined in Q2 2025, down from 97 bitcoin in Q1 2025
- Cash Flow from Operations: -$1.0 million in Q2 2025, as the Company mined $7.1 million more bitcoin than it sold
- Hashrate: 1.76 EH/s average for Q2 2025, up 8% from Q1 2025 and up 82% from Q2 2024
- Cash, Short-term Investments and Digital Assets: $61.9 million as of quarter-end Q2 2025, down 3% from Q1 2025 and up 42% from Q2 2024
- Total Assets: $129.5 million as of quarter-end Q2 2025, down 6% from Q1 2025 and up 9% from Q2 2024
- Net Income: -$0.02 per share in Q2 2025 versus -$0.02 in Q1 2025 and $0.00 per share in Q2 2024
DMG's CEO, Sheldon Bennett, commented: "In Q2, we continued to increase our Bitcoin mining hashrate, as we deployed our hydro direct-liquid-cooled miners. In addition, we advanced our AI strategy with the purchase of 2 megawatts of prefabbed data center infrastructure and have been making progress with respect to engaging Canadian public sector entities and private enterprises for off-take agreements, which we believe will be instrumental in aiding DMG in pursuing non-dilutive financing opportunities. Finally, the Systemic Trust, our digital asset custody platform, is currently focused on building on its platform development execution to gain customer adoption, ramp revenue and broaden its platform capabilities throughout calendar 2025.”
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Financial Second Quarter 2025 Financial Results Review
Revenue increased by $1,011,749 to $12,644,574 for the three months ended March 31, 2025 compared to the prior quarter. During the three months ended March 31, 2025, the Company received in its wallets from mining activity 91.27 bitcoin and ended the period with a balance of 458.07 bitcoin.
Operating and maintenance expenses for the three months ended March 31, 2025 were $7,625,097, up from $5,270,851 in the prior year period. This increase is primarily due to a $1,796,739 rise in utilities expenses, driven by expanded digital currency mining operations with additional operating miners and fluctuating energy prices. Furthermore, new hosting fees paid to third parties, totaling $682,756, also contributed to this increase.
Research costs for the three months ended March 31, 2025 increased by $122,232 compared to the prior year period. Research in fiscal 2025 continues to focus on software and relates to work on Systemic Trust, Helm, Reactor and Blockseer Explorer.
General and administrative costs for the three months ended March 31, 2025 were $1,936,402 in comparison to $1,846,398 in the prior year period. General and administrative costs consist mostly of wages, professional fees, consulting fees and financing costs. The overall increase of $90,004 is attributable mainly to financing costs related to the Company's credit facility with Sygnum Bank.
Depreciation for the three months ended March 31, 2025 was $4,314,108 compared to $3,805,988 in the prior year period.
Net income decreased by $3,348,566 to a net loss of $3,346,351 for the three months ended March 31, 2025 from the prior year period.
Total assets as of March 31, 2025 were $129,506,488, an increase of $25,637,507 from the end of the prior year end. The increase is mainly attributable to the Company's purchase of $7,116.500 short-term investments and a net increase in digital currency of $19,695,408 due to the increased price of bitcoin.
Second Quarter 2025 Results Conference Call Details
The Company will host a conference call to review its results and provide a corporate update on May 22, 2025 at 4:30 PM ET. Participants should register for the call via the link.
In addition to a live Q&A session via chat, management will also address pre-submitted questions. Those wishing to submit a question may do so via email at [email protected], using the subject line 'Conference Call Question Submission,' through 2:00 PM ET on May 22, 2025.
About DMG Blockchain Solutions Inc.
DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG's carbon-neutral Bitcoin ecosystem, which enables financial institutions to move bitcoin in a sustainable and regulatory-compliant manner.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG's YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
Email: [email protected]
Web: www.dmgblockchain.com
For Investor Relations:
For Media Inquiries:
Chantelle Borrelli
Head of Communications
| DMG Blockchain Solutions Inc.Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars) | |||||
Notes | As at March 31, 2025 (unaudited) | As at September 30, 2024 (audited) | |||
| ASSETS | $ | $ | |||
| Current | |||||
| Cash and cash equivalents | 804,771 | 1,679,060 | |||
| Amounts receivable | 6 | 3,888,754 | 4,910,251 | ||
| Digital currency | 5 | 54,023,111 | 34,327,703 | ||
| Prepaid expense and other current assets | 494,184 | 337,042 | |||
| Marketable securities | 8 | 231,944 | 316,803 | ||
| Short-term investment | 9 | 7,116,500 | - | ||
| Assets held for sale | 30,408 | - | |||
| Total current assets | 66,589,672 | 41,570,859 | |||
| Long-term deposits | 10 | 5,791,547 | 2,047,682 | ||
| Property and equipment | 11 | 50,066,817 | 53,798,978 | ||
| Intangible asset | 276,040 | - | |||
| Long-term investments | 12 | 45,000 | 45,000 | ||
| Amount recoverable | 7 | 6,737,412 | 6,406,462 | ||
| Total assets | 129,506,488 | 103,868,981 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current | |||||
| Trade and other payables | 13 | 5,024,344 | 5,183,107 | ||
| Deferred revenue | 19 | 113 | - | ||
| Current portion of lease liability | 99,641 | 43,483 | |||
| Current portion of loans payable | 14 | 20,421,551 | 13,928,462 | ||
| Total current liabilities | 25,545,649 | 19,155,052 | |||
| Long-term lease liability | 131,012 | 51,842 | |||
| Total liabilities | 25,676,661 | 19,206,894 | |||
| Shareholders' Equity | |||||
| Share capital | 15(a) | 120,326,738 | 113,086,455 | ||
| Reserves | 15(b)(c) | 55,773,443 | 45,853,100 | ||
| Accumulated other comprehensive income | 18,905,080 | 10,448,614 | |||
| Accumulated deficit | (91,175,434 | ) | (84,726,082 | ) | |
| Total shareholders' equity | 103,829,827 | 84,662,087 | |||
| Total liabilities and shareholders' equity | 129,506,488 | 103,868,981 | |||
The disclosed notes are integral to these condensed consolidated financial statements
| DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in Canadian Dollars, except for number of shares) (Unaudited) | |||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||
| Notes | March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | |||||
| $ | $ | $ | $ | ||||||
| Revenue | 17 | 12,644,574 | 10,015,659 | 24,277,399 | 19,706,423 | ||||
| Expenses | |||||||||
| Operating and maintenance costs | 18(a) | 7,625,097 | 5,270,851 | 14,304,940 | 10,418,502 | ||||
| General and administrative | 18(b) | 1,936,402 | 1,846,398 | 3,773,081 | 2,732,459 | ||||
| Stock-based compensation | 737,114 | 398,010 | 1,415,642 | 766,502 | |||||
| Research and development | 608,448 | 486,216 | 1,162,412 | 924,395 | |||||
| Provision (recovery) for doubtful accounts | (1,976 | ) | 42 | (6,719 | ) | 3,806 | |||
| Depreciation | 11 | 4,314,108 | 3,805,988 | 8,663,578 | 8,147,770 | ||||
| Total expenses | 15,219,193 | 11,807,503 | 29,312,934 | 22,993,434 | |||||
| Loss before other items | (2,574,619 | ) | (1,791,844 | ) | (5,035,535 | ) | (3,287,011 | ) | |
| Other income (expense) | |||||||||
| Interest and other income | 7 | 166,648 | 170,044 | 330,950 | 335,825 | ||||
| Provision of sales tax receivable | (668,685 | ) | (381,690 | ) | (976,424 | ) | (635,590 | ) | |
| Gain (loss) on disposition of assets | (1,618 | ) | 4,809 | (1,619 | ) | 4,809 | |||
| Foreign exchange loss | 7,414 | (28,341 | ) | (901,975 | ) | (122,926 | ) | ||
| Unrealized gain on revaluation of digital currency | 5 | - | 1,019,456 | 28,083 | 9,182,316 | ||||
| Realized gain (loss) on sale of digital currency | (147,601 | ) | 1,143,489 | 154,208 | 1,995,359 | ||||
| Gain (loss) on change in fair value of marketable securities | (127,890 | ) | (133,708 | ) | (84,859 | ) | 111,043 | ||
| Gain (loss) on fair value of investments | - | - | 37,819 | (609,120 | ) | ||||
| Net income (loss) | (3,346,351 | ) | 2,215 | (6,449,352 | ) | 6,974,705 | |||
| Other comprehensive income | |||||||||
| Items that may be reclassified subsequently to income or loss: | |||||||||
| Unrealized revaluation gain (loss) on digital currency | 5 | (6,830,755 | ) | 15,472,215 | 8,488,687 | 15,472,215 | |||
| Cumulative translation adjustment | (810 | ) | (11,278 | ) | (32,221 | ) | (1,196 | ) | |
| Comprehensive income (loss) | (10,177,916 | ) | 15,463,152 | 2,007,114 |
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