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DMG purchases 1,800 New Generation Bitmain Antminer S19 XPs
DMG updates that its current operating hashrate is 360 Ph/s and estimates to have over 400 Ph/s once November’s shipment of miners are installed and energized
DMG has purchased from Bitmain a total hashrate of 1,037 PH/s or approximately 9,500 S19s
VANCOUVER, British Columbia, Nov. 30, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FSE: 6AX) (“DMG” or the “Company”), a publicly-traded, vertically integrated blockchain and cryptocurrency technology company, today announces the purchase of 1,800 Bitmain Antminer S19 XP 140 Th miners, Bitmain’s newest generation.
Each miner uses only 3.01 kilowatts to generate 140 terahashes which will generate an overall additional 252 Ph/s once all of the 1,800 miners are received, installed and energized. With this order of 1,800 Bitcoin miners, DMG will own just over 1 Eh/s when including its previous Bitmain S19 orders.
Delivery of these 1,800 miners is expected to begin in July 2022, with 300 miners arriving each month for the following 6 months.
DMG also announces that mid-December 2021, once its November batch of Bitmain miners arrives, the Company will generate over 400 Ph/s hashrate, which, given various market factors, is estimated to produce an average of 2.58 BTC a day. This has been the culmination of the large bulk order arriving in August 2021 along with the supplemental orders of 450 S19 miners arriving each month starting in August and continuing over the course 12 months. DMG previously ordered 7,850 S19 Bitcoin miners from Bitmain. As a result, DMG has purchased from Bitmain a total hashrate of 1,037 PH/s or approximately 9,500 S19s (which includes the most recent order of 1,800 S19 XPs announced in this news release).
DMG also wishes to announce the granting of 2,845,750 stock options (“Options”) to directors and employees of the Company. The Options are exercisable for a period of three years at a price of $1.20 per share and will vest as to 25% on each of the six, twelve, eighteen and twenty-four month anniversary of the grant date.
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 two business lines under the Core and Core+ strategies and unified through DMG’s vertical integration.
For more information visit the DMG website here to learn more.
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
For additional information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations Contact:
CORE IR 516-222-2560
For Media Inquiries:
Jules Abraham, CORE IR
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.
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.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include statements regarding the upcoming conference, the purchase of additional Bitcoin miners and the expected delivery and installation dates of such miners, the expected Ph/s from the additional Bitcoin miners, the expected Bitcoin produced each day, 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. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.SEDAR.com including the annual information form for the year ended September 30, 2020, filed on January 28, 2021.
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.