DMG Blockchain Solutions Inc. Announces Purchase of Two Megawatts of AI Data Center Infrastructure
VANCOUVER, British Columbia, April 29, 2025 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FRANKFURT: 6AX) ( "DMG " or the "Company "), a vertically integrated blockchain and data center technology company, announces it has signed a purchase and sale agreement (PSA) for two megawatts of Prefabricated Data Center (“PDC”) infrastructure for a confidential consideration with the same undisclosed counterparty (“Counterparty”) with which it has an MOU signed in February 2025 to purchase 10 megawatts of PDC infrastructure.
This asset purchase payment is in lieu of the previously disclosed US$5M upfront payment with the balance of the to-be-agreed-upon price based on future DMG revenue resulting from artificial intelligence (AI) computing off-take agreements. The Company intends to move the two megawatts of purchased PDC units to either its Christina Lake data center, Malahat Nation lands and/or a temporary storage location in the coming months. DMG intends to acquire the remaining available PDC infrastructure under the original 10-megawatt MOU terms.
Since the signing of the MOU, DMG has made progress with respect to engaging Canadian government entities and enterprises for off-take agreements. DMG has up to 180 days to demonstrate progress towards reaching off-take agreements to maintain its exclusivity towards closing a definitive agreement to acquire the balance of the available PDC units. DMG will issue an additional news release related to the final structure and terms of the potential transaction, and other material information if and when it becomes available.
DMG intends to deploy the PDC units at one or more locations, as the PDC infrastructure can be partitioned into smaller units due to its modular nature. While the infrastructure forms the basis for an AI data center, it does not include medium-voltage power distribution, battery storage or backup power generation, the configuration and amount of which have yet to be determined. Additionally, the PDC is not facilitated with computing, networking nor storage systems, all of which will need to be installed to realize revenue from potential AI off-take agreements.
DMG’s CEO Sheldon Bennett stated, “This purchase gives us the foundational capacity to begin moving forward on our AI infrastructure strategy and is appropriately sized, as we believe it is likely that Canadian Sovereign and Private AI installations are likely to start modest in size compared to the large US hyperscalers. Owning this infrastructure gives a unique time to market advantage, which is critical as Canadian government and enterprise entities scramble to protect themselves against international geopolitical forces beyond their control. We also believe this purchase is the most capital efficient way for which we can begin to build a critical mass of AI infrastructure, helping us to maximize our return to shareholders.”
DMG Operational Update
In line with prior guidance, DMG has energized approximately two megawatts of additional hydro mining capacity and has reached 2.0 EH/s hashrate. It expects to energize the remaining two megawatt balance of its 6 megawatt hydro mining deployment plan in the coming week and reach 2.1 EH/s. As the increasing network difficulty has resulted in decreased profitability and the Company has observed heat sensitivity for its Bitmain T21 fleet, DMG may choose to downclock at least a portion of its fleet, which may result in a net fleet hashrate modestly below 2.1 EH/s.
Systemic Trust Company Update
DMG announces that Alvin Leung has been appointed as the acting Chief Executive Officer of Systemic Trust Company, a wholly owned subsidiary of DMG, with effect as of April 25, 2025. The Company accepted Lawrence Truong’s resignation as Chief Executive Officer and as a director of System Trust Company.
About DMG Blockchain Solutions Inc.
DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG’s carbon-neutral Bitcoin ecosystem, which enables financial institutions to move bitcoin in a sustainable and regulatory-compliant manner.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG 's YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.com
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.
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 the execution of a definitive agreement for the PDC and the timing thereof, the expected benefits and outcomes of the PDC including the potential AI computing off-take agreements, adding computing, networking and storage systems to the PDC infrastructure, all of which will need to be installed to realize revenue from potential AI off-take agreements, energize the remaining two megawatt balance of its 6 megawatt hydro mining, increase hashrate subject to any potential downclocking at least a portion of its fleet, the Company’s strategy for growth, the planned monetization of certain product and service offerings, developing and executing on the Company’s products, services and business plans, the launch of products and services, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information.
Future changes in the Bitcoin network-wide mining difficulty or Bitcoin hashrate may materially affect the future performance of DMG’s production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hashrate and mining difficulty.
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 of the Company, 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 bitcoin; security threats, including a loss/theft of DMG 's bitcoin; 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.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.
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 viruses and diseases on the Company 's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin from DMG or its customers, consumer sentiment towards DMG 's products, services and blockchain technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, 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.
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