DMG Blockchain Solutions Posts Q1 Revenue of $14.2M, up 639% Year Over Year, and announces Quarterly Financial Results and Corporate Update on March 30, 2022
DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, is pleased to report its Q1 2022 filings for the quarter ended December 31, 2021 (all financial references are in Canadian Dollars unless specified otherwise) and announces Quarterly Financial Results and Corporate Update on March 30, 2022 at 4:30 PM ET.
Financial Summary for the Quarter ended December 31, 2021
DMG’s first quarter of its 2021-2 financial year had the Company’s strongest results ever. The Company generated record revenues of $14.2 million, up by 639% from its Q1 previous quarter ending December 31, 2020. This was mainly due to the arrival and installation of ordered crypto miners which significantly increased the Company’s hashrate and resulting revenues. Gross margin and net income were $11.5 million and $5.9 million up over 2,000% and 826%, respectively compared to Q1 2021.
The substantial increase in revenues also resulted in the Company’s strongest operating income to date at $5.3 million for the quarter as compared to a loss of $0.55 million in the Q1 2020. At December 31, 2021, the Company held $749,174 in cash and over $26 million in digital assets (primarily Bitcoin) for total cash and cash equivalent liquidity of $27 million.
DMG’s BTC production was the highest of any quarter due to the arrival of new miners in late Q4 2021. Through the first quarter, DMG achieved monthly BTC rewards production numbers of 64.72 BTC, 49.82 BTC and 66.71 BTC through October, November and December.
“A tremendous amount of work has gone in by the entire team to reach these results. For the first time the Company is posting strong financial gains and we believe this will continue through many more quarters due to our large investment in new mining equipment. The whole team is focused on operational excellence for this new fleet of servers as well as working hard to launch several new software solutions throughout the year,” said Sheldon Bennett, Chief Executive Officer.
With the filing of DMG’s first quarter results, the Management Cease Trade Order enacted January 31, 2022 has been lifted as of March 24, 2022.
Today the Company also announces that it will host a conference call to review fourth quarter 2021 and first quarter 2022 financial results and provide a corporate update on Wednesday, March 30, 2022, at 4:30 pm ET.
Participants are asked to pre-register for the call through the following link: https://dpregister.com/sreg/10163324/f0f449d1f8.
Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay. Those without Internet access or unable to pre-register may dial in by calling: 1-833-953-2438 (U.S. toll free), 1-412-317-5767 (international) or 1-866-450-4696 (Canadian toll free). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the DMG Blockchain call.
The conference call will also be available through a live webcast found here, and will be available for webcast replay approximately one hour after the end of the call and until December 1, 2022.
A telephonic replay of the call will be available through April 13, 2022, and may be accessed by calling 1-877-344-7529 (U.S. toll free), 1-412-317-0088 (international) or 855-669-9658 (Canadian toll free) and using the access code 8109134.
Although there will be no live Q&A session, management will address pre-submitted questions during the call. Those wishing to submit a question may do so via [email protected] using the subject line ‘Conference Call Question Submission’ through March 29, 2022, at 12:00 PM ET.
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. DMG’s non-polluting data centre operations focus on earning eco-friendly revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients entirely powered by renewable energy. DMG’s data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms, and law enforcement organizations. 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 environmentally committed management team includes seasoned crypto experts, forensic & financial professionals and blockchain developers with deep relationships throughout the industry and a strong ecological consciousness.
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.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.
On behalf of the Board of Directors,
Sheldon Bennett, CEO and Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Email: [email protected]
Investor Relations Contact:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, Head of Public Relations
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.