DMG's First Quarter 2025: Growth in Revenue and Bitcoin Mining

DMG Blockchain Solutions Reports Strong Performance in Q1 2025

DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) has announced its substantial financial results for the first quarter of 2025. As a vertically integrated blockchain and data center technology company, DMG continues to make strides in its operations and financial performance. With financial figures calculated in Canadian dollars, readers are encouraged to review detailed unaudited financial statements as well.

Highlights from First Quarter Financial Results

The financial highlights from Q1 2025 demonstrate DMG's growth trajectory:

• Revenue: The company achieved a remarkable revenue of $11.6 million, representing a 97% increase from the previous quarter and a 20% uptick from Q1 2024.
• Bitcoin Mined: In a notable performance, DMG mined 97 bitcoins during this quarter, a 49% increase from Q4 2024.
• Cash Flow from Operations: The cash flow reported was -$2.7 million, attributed to the sale of $4 million less bitcoin compared to earnings.
• Hashrate: The hashrate was recorded at 1.62 EH/s in Q1 2025, marking a 65% increase sequentially.
• Fleet Efficiency: An improvement to 22.9 J/TH was achieved, with a target of 21 J/TH once hydro miners are fully energized.
• Cash and Digital Assets: The company reported holding $58.2 million in cash and digital assets, up 62% from Q4 2024.
• Net Loss: The net loss per share decreased to -$0.02 compared to -$0.05 in the previous quarter.

Operational Insights from February

DMG's operational metrics in February were also noteworthy:

• Bitcoin Mined: 27 bitcoins were mined, consistent with operational adjustments.
• Hashrate: The hashrate decreased slightly to 1.71 EH/s.
• Bitcoin Holdings: The total bitcoin held grew to 443 BTC.
• Days Non-Firm Power Curtailed: There was a three-day curtailment in non-firm power capacity.

CEO Comments on Growth Strategy

Sheldon Bennett, the CEO of DMG, stated, "We’re making significant progress in our Core+ strategy and in our ambitions for generative artificial intelligence. With Systemic Trust qualified as a digital asset custodian, we aim to onboard new customers and ramp up revenue. Our strategies are being developed to support DMG’s Petra technology, boosting our carbon-neutral bitcoin ecosystem. We've also commenced new AI initiatives involving a prefabricated data center and a joint venture with local partners for AI compute capacity."

Detailed Q1 2025 Financial Overview

The company has witnessed a positive financial trajectory with revenue increasing by nearly $2 million compared to the previous year. This revenue growth has primarily been driven by digital currency mining revenues significantly benefitting from the increased average bitcoin price. Operating and maintenance costs experienced an uptick, mainly due to rising utility expenses tied to the expansion of mining operations.

Moreover, research costs have risen as DMG focuses on enhancing its software capabilities concerning various projects like Systemic Trust and Blockseer Explorer. General administrative costs also surged during this period due to increased wages and professional fees.

Despite a reported net loss of $3.1 million for the quarter, which contrasts sharply with a net income in Q1 2024, DMG is moving towards a robust financial future, particularly with the total assets rising to over $137 million following a notable increase in digital currency valuations.

Upcoming Conference Call Details

The management will host a conference call to elaborate on the financial results and provide a corporate update soon. Participants are encouraged to register for the call to engage and inquire further about DMG's future plans and strategies.

About DMG Blockchain Solutions Inc.

DMG Blockchain Solutions Inc. is a publicly traded, vertically integrated blockchain and data center technology company committed to developing sustainable and innovative solutions within the blockchain and AI fields. With two distinct business lines—Core (focused on data center infrastructure) and Core+ (dedicated to software and services)—DMG is strategically positioned to capitalize on emerging opportunities in the blockchain ecosystem.

Frequently Asked Questions

What are the key financial results for DMG in Q1 2025?

DMG reported a revenue of $11.6 million, a 97% increase from the prior quarter, with a net loss per share of -$0.02.

How much bitcoin did DMG mine in this quarter?

DMG mined 97 bitcoins in Q1 2025, showing a 49% increase from the previous quarter.

What strategic moves is DMG focusing on?

DMG is aiming to enhance its Core+ strategy and expand its generative AI capabilities, including partnerships for new data center projects.

What changes happened in cash flow during Q1 2025?

DMG recorded a cash flow from operations of -$2.7 million, as it sold less bitcoin than it mined.

When will DMG hold its next conference call?

DMG will host a conference call shortly to discuss its financial results and future strategies.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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