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Increasing Bitcoin prices drive new interest in mining
Forensics division continues to gain new customers
VANCOUVER, British Columbia, Sept. 04, 2019 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (DMGI.V) (DMGGF:OTC US) (6AX.F) (“DMG” or the “Company”), a diversified blockchain and technology company, is providing an update and overview of its crypto-mining operations and its forensics division.
DMG constructed an 85-megawatt substation to power its flagship facility in eastern British Columbia, which is one of the largest such facilities in North America. To put that into perspective, 85MW is enough to power a city of 100,000 people. As a company, DMG chose to primarily invest in long-lived assets, including infrastructure and power distribution, as opposed to short-lived, capital-intensive mining equipment. DMG’s facility currently contains an 85MW high voltage substation with 60MW of mid-voltage transformers.
DMG’s property is approximately 32 acres with a 27,000 square foot building in place. The facility can house 45MW of servers with the remaining 15MW being housed using proprietary modular containers. DMG primarily hosts mining equipment for third party clients from North America and Asia, and is currently providing approximately 15MW for clients and itself, generating approximately $1,000,000 in monthly gross revenue.
With the roll out of the next generation of crypto miners, more efficient miners are expected to be widely deployed in late 2019 and DMG is currently in discussions with multiple parties to host their latest technology servers.
One of the great advantages of owning its own substation is DMG’s flexibility in its power consumption. This essentially gives DMG many choices on how to operate its power needs, similar to utilities. Due to DMG’s power infrastructure it can also purchase power from third-party providers outside of standard utility pricing. As well, DMG’s software team has added considerable automation to DMG’s proprietary crypto management software. This software can increase and decrease the power consumption of crypto servers based on real time factors such as heat and time of day. This allows DMG and its customers to overclock servers to produce more revenue at cooler temperatures so there is less need for costly HVAC systems. The software also identifies physical locations of servers in need of repair and what exactly needs to be repaired so that staff technicians are efficient in finding, repairing and returning servers back to operations in the shortest time.
With the price of bitcoin having increased substantially over the past nine months, DMG is receiving more interest from potential clients for hosting contracts. DMG primarily hosts mining equipment for third parties and their bitcoin is sent to their crypto-wallets. For DMG’s own mining, bitcoin is sent to a company-controlled wallet, residing off-line in a hardware wallet which is kept in a safety deposit box at all times with a minimum of two people required to access it.
By 2019, DMG has become one of the leading crypto-mining companies providing hosting services, forensics and data analytics expert, as well as the lead developer of Wazabi, the AI- and Blockchain-based cognitive platform developed to manage the global cannabis supply chain.
Walletscore and Blockseer
DMG has capitalized its research and development to launch its newest software product called “Walletscore” which is a real-time crypto focused anti-money laundering tool for Bitcoin and Ethereum.
In early 2018 DMG acquired Datient Inc, based out of Silicon Valley and led by Danny Yang. One of the reasons DMG acquired Datient was for its technology known as Blockseer, which allows investigators to track bitcoin transactions both upstream and downstream. Blockseer had been used by various law enforcement agencies for five years and as such the data collected includes very valuable and accurate labelling of transactions and wallets involving scams, frauds, thefts, dark web purchases, etc.
Walletscore is a web interface and API used by financial institutions, exchanges, and private banks which provides a risk score associated with transacting with potentially tainted crypto wallets, thus reducing the probability that DMG’s clients will be involved with wallets that have previous money laundering or other criminal activity. Walletscore combines its data with that from Blockseer to perform these functions. Walletscore was recently launched in Europe, and more than 25 financial institutions are now testing this technology.
During 2019, DMG was engaged by a leading audit firm as a technical expert on crypto mining, transactions and asset impairment. Additionally, DMG was engaged by one of the world’s largest crypto mining companies to assist with their public audit. DMG uses a combination of its Walletscore and Blockseer technologies and data analytics expertise to help determine accurate information and reporting.
In addition, in recent months DMG has been hired by various law firms to provide technical reports relating to ICO (initial coin offering) investigations concerning the source of funds and where funds are presently. As a result, DMG’s forensic division has generated more than $250,000 in consulting revenues in the past few months.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, development of Wazabi, expansion of mining facility, acquisition of customers, product development, 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, 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 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.
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, 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, 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.
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.