Announces Quarterly Financial Results and Corporate Update on June 3, 2022
Conference Call to Review Results to be Held June 3, 2022 at 4:05 PM ET
VANCOUVER, British Columbia, June 02, 2022 (GLOBE NEWSWIRE) — 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 Q2 2022 filings for the quarter ended March 31, 2022 (all financial references are in Canadian Dollars unless specified otherwise). The Company will also hold a corporate update conference call on June 3, 2022 at 4:05 PM ET.
Highlights:
- Increased quarterly revenues to $11.9M, up 377% from same period a year ago
- Increased EPS to $0.03 per share for six months ending March 31, up from (0.01) loss per share for the same period a year ago
- 372 BTC held as of March 31, 2022
- Strong balance sheet with $125M in total assets as of March 31, 2022
- Hashrate increased to 595 PH/s as of March 31, 2022
Financial Summary for the Quarter ended March 31, 2022DMG’s second quarter of its 2022 financial year showed continued strength despite headwinds of a simultaneous decline in bitcoin pricing and increase in the network hash rate. The Company generated revenue of $11.9 million, up 377% year over year and down 17% quarter over quarter. This sequential decline was due mainly to a bitcoin price decline of 26% (quarter average vs prior quarter average) to $52,374 combined with an increase in the Bitcoin network hashrate of 20% (quarter average vs prior quarter average) to 194.0 EH/s partly offset by a 40% increase in the Company’s average hash rate to 491 PH/s (quarter ending hashrate was 595 PH/s). This also resulted in a decline in gross margin percentage to 73% from 81% the prior quarter. For the six-month financial period through March 31, 2022, gross profit and net income were $20.2 million and $5.1 million, respectively.
The substantial year over year increase in six-month period revenue also resulted in the Company’s strongest operating income to date of $6.8 million as compared to a loss of $2.1 million in the prior year period. As of March 31, 2022, the Company held $6.3 million in cash and $21.8 million in digital assets (primarily bitcoin) for total cash and cash equivalent liquidity of $28.1 million.
DMG’s BTC mining production was the highest of any quarter due to the arrival of new miners. DMG achieved monthly BTC rewards production numbers of 65, 59 and 72 BTC in January, February and March, respectively, for a total of 196 BTC in the quarter, an increase of 7% quarter over quarter.
“We are excited about our opportunity in calendar 2022; the Company continues toward its execution goals for its Core and Core+ strategies: powering 1-exahash of Bitcoin self-mining, launching Terra Pool to enable industrial miners beyond its charter members that seek to be on a 100% renewable energy pool, and delivering software products that enable the monetization of bitcoin transactions that meet the highest levels of regulatory compliance,” said Sheldon Bennett, Chief Executive Officer.
Readers are encouraged to review the Company’s complete Q2 2022 financial statements and management’s discussion and analysis thereof for a fulsome assessment of the Company’s performance and applicable risk factors, available at www.sedar.com.
Management CallToday the Company also announces that it will host a conference call to review second quarter 2022 financial results and provide a corporate update on June 3, 2022, at 4:05 pm ET.
Participants are asked to pre-register for the call through the following link:https://dpregister.com/sreg/10167797/f31baaf57f.
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 September 3, 2022.
A telephonic replay of the call will be available through June 17, 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 3024833.
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 June 3, 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 two business lines under the Core and Core+ strategies and unified through DMG’s vertical integration.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate 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 hash rate mining difficulty.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.comFollow @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.
On behalf of the Board of Directors,Sheldon Bennett, CEO and Director
