DMG Files Q3 Financial Statements and MD&A

VANCOUVER, British Columbia, Aug. 28, 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 the filing of its 3rd Quarter Financials. This news release should be read in conjunction with the financial statements and MD&A, which are available at www.sedar.com.

Highlights:

• In May 2020 the Bitcoin halving occurred, leading to lower bitcoin block rewards for DMG’s mining operations as compared to the same period in 2019
• Revenue reported for the period Q3 2020 was $1,363,233 with a comprehensive loss of $532,071, as compared to a loss of $2,552,705 in Q3 2019, a substantial improvement
• Revenues do not reflect the 1,000 MicroBT M30S new miners energized June 30, 2020
• General expenses, including operations and administrative costs reduced from $6,665,584 in Q3 2019 to $2,258,593 in Q3 2020 representing a reduction of 66%
• Consulting and Forensics revenues of $345,793 in the last three quarters

DMG’s CEO Dan Reitzik commented, “The past 18 months may have been challenging in the crypto-mining industry due to a significant drop in bitcoin price beginning in December 2017, increased network hashrate, and a reduction in capital investment. However, DMG primarily invested in the infrastructure in our Christina Lake facility, one of the largest in North America, and with bitcoin prices rising again, the future looks bright. Our revenues have traditionally come from hosting third party clients from around the world, but earlier in 2020, based on the increasing bitcoin price and availability of new mining technologies, the Company made the decision to begin upgrading DMG’s self-mining fleet, and to date have added approximately 112 PH comprised of 1242 MicroBT M30S miners and a variety of other miners. The Company’s goal for self-mining remains at 500 PH by the end of 2020, and we hope to achieve this milestone, which would make DMG one of the largest bitcoin mining companies by PH in the world. Manufacturing supply issues, however, and access to favourable financing options, may impede this goal.