AG˹ٷ

STOCK TITAN

DMG Blockchain Solutions Reports Second Quarter 2025 Results

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
DMG Blockchain Solutions reported its Q2 2025 financial results, showing mixed performance. Revenue reached $12.6 million, up 9% QoQ and 26% YoY. The company mined 91 bitcoin in Q2, down from 97 in Q1, while achieving a hashrate of 1.76 EH/s, an 82% YoY increase. Financial metrics showed some pressure with negative cash flow from operations of -$1.0M and a net loss of $0.02 per share. Total assets stood at $129.5 million, down 6% QoQ but up 9% YoY. The company advanced its AI strategy by purchasing 2MW of prefabbed data center infrastructure and continued development of its Systemic Trust digital asset custody platform.
DMG Blockchain Solutions ha riportato i risultati finanziari del secondo trimestre 2025, mostrando performance contrastanti. I ricavi hanno raggiunto 12,6 milioni di dollari, con un aumento del 9% rispetto al trimestre precedente e del 26% su base annua. L'azienda ha estratto 91 bitcoin nel Q2, in calo rispetto ai 97 del Q1, mentre ha raggiunto un hashrate di 1,76 EH/s, con un incremento annuo dell'82%. I dati finanziari mostrano alcune difficoltà, con un flusso di cassa operativo negativo di -1,0 milioni di dollari e una perdita netta di 0,02 dollari per azione. Il totale degli asset si è attestato a 129,5 milioni di dollari, in calo del 6% rispetto al trimestre precedente ma in crescita del 9% su base annua. L'azienda ha inoltre avanzato nella sua strategia AI acquistando 2MW di infrastrutture prefabbricate per data center e ha proseguito lo sviluppo della piattaforma Systemic Trust per la custodia di asset digitali.
DMG Blockchain Solutions reportó sus resultados financieros del segundo trimestre de 2025, mostrando un desempeño mixto. Los ingresos alcanzaron los 12,6 millones de dólares, un aumento del 9% respecto al trimestre anterior y del 26% interanual. La compañía minó 91 bitcoins en el Q2, una disminución respecto a los 97 del Q1, mientras que logró una tasa de hash de 1,76 EH/s, un incremento del 82% interanual. Las métricas financieras reflejaron cierta presión con un flujo de caja operativo negativo de -1,0 millones y una pérdida neta de 0,02 dólares por acción. Los activos totales se situaron en 129,5 millones de dólares, bajando un 6% respecto al trimestre anterior pero aumentando un 9% interanual. La compañía avanzó en su estrategia de IA comprando 2MW de infraestructura prefabricada para centros de datos y continuó desarrollando su plataforma Systemic Trust para la custodia de activos digitales.
DMG Blockchain Solutions� 2025� 2분기 재무 실적� 발표하며 혼조� 성과� 보였습니�. 매출1,260� 달러� 전분� 대� 9%, 전년 동기 대� 26% 증가했습니다. 회사� 2분기� 91 비트코인� 채굴했으�, 1분기� 97개에� 감소했으�, 1.76 EH/s� 해시레이트를 달성� 전년 대� 82% 증가했습니다. 재무 지표에서는 영업활동 현금 흐름� -100� 달러� 부정적이며 주당 순손실읶� 0.02달러� 기록� 다소 압박� 받았습니�. � 자산읶 1� 2,950� 달러� 전분� 대� 6% 감소했으� 전년 대� 9% 증가했습니다. 회사� AI 전략� 강화하기 위해 2MW 규모� 프리패브 데이� 센터 인프라를 구매했으�, 디지� 자산 보관 플랫폼인 Systemic Trust 개발� 계속 진행 중입니다.
DMG Blockchain Solutions a publié ses résultats financiers du deuxième trimestre 2025, montrant une performance mitigée. Le chiffre d'affaires a atteint 12,6 millions de dollars, en hausse de 9 % par rapport au trimestre précédent et de 26 % sur un an. La société a miné 91 bitcoins au T2, en baisse par rapport aux 97 du T1, tout en atteignant un taux de hachage de 1,76 EH/s, soit une augmentation de 82 % sur un an. Les indicateurs financiers ont montré une certaine pression avec un flux de trésorerie opérationnel négatif de -1,0 million de dollars et une perte nette de 0,02 dollar par action. Le total des actifs s'élevait à 129,5 millions de dollars, en baisse de 6 % par rapport au trimestre précédent mais en hausse de 9 % sur un an. La société a fait progresser sa stratégie IA en achetant 2 MW d'infrastructures préfabriquées pour centres de données et a poursuivi le développement de sa plateforme de conservation d'actifs numériques Systemic Trust.
DMG Blockchain Solutions veröffentlichte seine Finanzergebnisse für das zweite Quartal 2025 und zeigte dabei gemischte Leistungen. Der Umsatz erreichte 12,6 Millionen US-Dollar, ein Anstieg von 9 % gegenüber dem Vorquartal und 26 % im Jahresvergleich. Das Unternehmen förderte im Q2 91 Bitcoin, weniger als die 97 im Q1, erreichte jedoch eine Hashrate von 1,76 EH/s, was einem Anstieg von 82 % im Jahresvergleich entspricht. Finanzkennzahlen zeigten einige Belastungen mit einem negativen operativen Cashflow von -1,0 Mio. USD und einem Nettoverlust von 0,02 USD je Aktie. Die Gesamtvermögenswerte beliefen sich auf 129,5 Millionen US-Dollar, was einem Rückgang von 6 % gegenüber dem Vorquartal, aber einem Anstieg von 9 % im Jahresvergleich entspricht. Das Unternehmen verfolgte seine KI-Strategie weiter, indem es 2 MW vorgefertigte Rechenzentrumsinfrastruktur erwarb und die Entwicklung seiner digitalen Vermögensverwaltungsplattform Systemic Trust fortsetzte.
Positive
  • Revenue increased 26% YoY to $12.6 million
  • Hashrate grew 82% YoY to 1.76 EH/s
  • Strong balance sheet with $61.9 million in cash, short-term investments and digital assets
  • Bitcoin holdings increased to 458.07 BTC
  • Strategic expansion into AI infrastructure with 2MW data center purchase
Negative
  • Bitcoin production decreased to 91 BTC from 97 BTC QoQ
  • Negative cash flow from operations of -$1.0 million
  • Net loss of $0.02 per share
  • Operating expenses increased significantly due to higher utility costs
  • Total assets declined 6% QoQ to $129.5 million

VANCOUVER, British Columbia, May 21, 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, today announces its fiscal second quarter 2025 financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company’s March 31, 2025 quarterly unaudited financial statements and management’s discussion and analysis thereof for an assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca.

Q2 2025 Financial Results Highlights

  • Revenue: $12.6 million in Q2 2025, up 9% from $11.6 million in Q1 2025 and up 26% from $10.0 million in Q2 2024
  • Bitcoin Mined: 91 bitcoin mined in Q2 2025, down from 97 bitcoin in Q1 2025
  • Cash Flow from Operations: -$1.0 million in Q2 2025, as the Company mined $7.1 million more bitcoin than it sold
  • Hashrate: 1.76 EH/s average for Q2 2025, up 8% from Q1 2025 and up 82% from Q2 2024
  • Cash, Short-term Investments and Digital Assets: $61.9 million as of quarter-end Q2 2025, down 3% from Q1 2025 and up 42% from Q2 2024
  • Total Assets: $129.5 million as of quarter-end Q2 2025, down 6% from Q1 2025 and up 9% from Q2 2024
  • Net Income: -$0.02 per share in Q2 2025 versus -$0.02 in Q1 2025 and $0.00 per share in Q2 2024

DMG’s CEO, Sheldon Bennett, commented: “In Q2, we continued to increase our Bitcoin mining hashrate, as we deployed our hydro direct-liquid-cooled miners. In addition, we advanced our AI strategy with the purchase of 2 megawatts of prefabbed data center infrastructure and have been making progress with respect to engaging Canadian public sector entities and private enterprises for off-take agreements, which we believe will be instrumental in aiding DMG in pursuing non-dilutive financing opportunities. Finally, the Systemic Trust, our digital asset custody platform, is currently focused on building on its platform development execution to gain customer adoption, ramp revenue and broaden its platform capabilities throughout calendar 2025.�

Financial Second Quarter 2025 Financial Results Review

Revenue increased by $1,011,749 to $12,644,574 for the three months ended March 31, 2025 compared to the prior quarter. During the three months ended March 31, 2025, the Company received in its wallets from mining activity 91.27 bitcoin and ended the period with a balance of 458.07 bitcoin.

Operating and maintenance expenses for the three months ended March 31, 2025 were $7,625,097, up from $5,270,851 in the prior year period. This increase is primarily due to a $1,796,739 rise in utilities expenses, driven by expanded digital currency mining operations with additional operating miners and fluctuating energy prices. Furthermore, new hosting fees paid to third parties, totaling $682,756, also contributed to this increase.

Research costs for the three months ended March 31, 2025 increased by $122,232 compared to the prior year period. Research in fiscal 2025 continues to focus on software and relates to work on Systemic Trust, Helm, Reactor and Blockseer Explorer.

General and administrative costs for the three months ended March 31, 2025 were $1,936,402 in comparison to $1,846,398 in the prior year period. General and administrative costs consist mostly of wages, professional fees, consulting fees and financing costs. The overall increase of $90,004 is attributable mainly to financing costs related to the Company’s credit facility with Sygnum Bank.

Depreciation for the three months ended March 31, 2025 was $4,314,108 compared to $3,805,988 in the prior year period.

Net income decreased by $3,348,566 to a net loss of $3,346,351 for the three months ended March 31, 2025 from the prior year period.

Total assets as of March 31, 2025 were $129,506,488, an increase of $25,637,507 from the end of the prior year end. The increase is mainly attributable to the Company’s purchase of $7,116.500 short-term investments and a net increase in digital currency of $19,695,408 due to the increased price of bitcoin.

Second Quarter 2025 Results Conference Call Details

The Company will host a conference call to review its results and provide a corporate update on May 22, 2025 at 4:30 PM ET. Participants should register for the call via the.

In addition to a live Q&A session via chat, management will also address pre-submitted questions. Those wishing to submit a question may do so via email at [email protected], using the subject line ‘Conference Call Question Submission,� through 2:00 PM ET on May 22, 2025.

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: [email protected]
Web: www.dmgblockchain.com

For Investor Relations:
[email protected]

For Media Inquiries:
Chantelle Borrelli
Head of Communications
[email protected]


DMG Blockchain Solutions Inc.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian Dollars)


Notes
As at
March 31, 2025
(unaudited)
As at
September 30,
2024
(audited)
ASSETS$$
Current
Cash and cash equivalents804,7711,679,060
Amounts receivable63,888,7544,910,251
Digital currency554,023,11134,327,703
Prepaid expense and other current assets494,184337,042
Marketable securities8231,944316,803
Short-term investment97,116,500-
Assets held for sale30,408-
Total current assets66,589,67241,570,859
Long-term deposits105,791,5472,047,682
Property and equipment1150,066,81753,798,978
Intangible asset276,040-
Long-term investments1245,00045,000
Amount recoverable76,737,4126,406,462
Total assets129,506,488103,868,981
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Trade and other payables135,024,3445,183,107
Deferred revenue19113-
Current portion of lease liability99,64143,483
Current portion of loans payable1420,421,55113,928,462
Total current liabilities25,545,64919,155,052
Long-term lease liability131,01251,842
Total liabilities25,676,66119,206,894
Shareholders' Equity
Share capital15(a)120,326,738113,086,455
Reserves15(b)(c)55,773,44345,853,100
Accumulated other comprehensive income18,905,08010,448,614
Accumulated deficit(91,175,434)(84,726,082)
Total shareholders' equity103,829,82784,662,087
Total liabilities and shareholders' equity129,506,488103,868,981

The disclosed notes are integral to these condensed consolidated financial statements

DMG Blockchain Solutions Inc.
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
(Expressed in Canadian Dollars, except for number of shares)
(Unaudited)
For the Three Months EndedFor the Six Months Ended
NotesMarch 31,
2025
March 31,
2024
March 31,
2025
March 31,
2024
$$$$
Revenue1712,644,57410,015,65924,277,39919,706,423
Expenses
Operating and maintenance costs18(a)7,625,0975,270,85114,304,94010,418,502
General and administrative18(b)1,936,4021,846,3983,773,0812,732,459
Stock-based compensation737,114398,0101,415,642766,502
Research and development608,448486,2161,162,412924,395
Provision (recovery) for doubtful accounts(1,976)42(6,719)3,806
Depreciation114,314,1083,805,9888,663,5788,147,770
Total expenses15,219,19311,807,50329,312,93422,993,434
Loss before other items(2,574,619)(1,791,844)(5,035,535)(3,287,011)
Other income (expense)
Interest and other income7166,648170,044330,950335,825
Provision of sales tax receivable(668,685)(381,690)(976,424)(635,590)
Gain (loss) on disposition of assets(1,618)4,809(1,619)4,809
Foreign exchange loss7,414(28,341)(901,975)(122,926)
Unrealized gain on revaluation of digital currency5-1,019,45628,0839,182,316
AG˹ٷized gain (loss) on sale of digital currency(147,601)1,143,489154,2081,995,359
Gain (loss) on change in fair value of marketable securities(127,890)(133,708)(84,859)111,043
Gain (loss) on fair value of investments--37,819(609,120)
Net income (loss)(3,346,351)2,215(6,449,352)6,974,705
Other comprehensive income
Items that may be reclassified subsequently to income or loss:
Unrealized revaluation gain (loss) on digital currency5(6,830,755)15,472,2158,488,68715,472,215
Cumulative translation adjustment(810)(11,278)(32,221)(1,196)
Comprehensive income (loss)(10,177,916) 15,463,1522,007,11422,445,724
Basic and diluted income (loss) per share15(d)(0.02)0.00(0.03)0.04
Weighted average number of shares outstanding15(d)
- basic203,242,018169,029,065194,424,988168,585,910
- diluted203,242,018172,516,428194,424,988173,248,160

The disclosed notes are integral to these condensed consolidated interim financial statements

DMG Blockchain Solutions Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)
For the Six Months Ended
March 31, 2025March 31, 2024
$$
OPERATING ACTIVITIES
Net income (loss) for the period(6,449,352)6,974,705
Non-cash items:
Accretion7,82723,272
Depreciation8,663,5798,147,770
Share-based payments1,415,642766,502
Unrealized foreign exchange loss911,04640,351
Loss (gain) on disposition of assets1,618(4,809)
Loss (gain) on change in fair value of marketable securities84,860(111,043)
Loss (gain) on fair value of investment(37,819)609,120
Provision for sales tax receivable976,424635,590
Bad debt (recovery) expense(6,719)3,806
Digital currency related revenue(23,409,103)(18,355,313)
Unrealized gain on digital currency(28,083)(9,182,315)
Digital currency sold12,389,90520,173,781
AG˹ٷized gain on sale of digital currency(154,208)(1,995,359)
Non-cash interest income(330,950)(329,914)
Accrued interest748,459-
Changes in non-cash operating working capital:
Prepaid expenses and other current assets1,433,405(144,388)
Amounts receivable144,544(212,015)
Deferred revenue11311,277
Trade and other payables(76,596)1,144,920
Net cash provided by operating activities(3,715,408)8,195,938
INVESTING ACTIVITIES
Purchase of property and equipment(4,772,107)(830,859)
Purchase of intangible assets(276,040)-
Deposits on mining equipment(7,324,024)(18,102,867)
Purchase of short-term investment(7,116,500)(609,120)
Refund of security deposits1,792,907-
Net cash used by investing activities(17,695,764)(19,542,846)
FINANCING ACTIVITIES
Proceeds from issuance of units17,254,945-
Share issuance costs(1,570,875)-
Proceeds from option exercises60,913438,024
Principal lease payments(37,596)(61,187)
Proceeds from secured loan5,829,01310,791,288
Repayment of loans payable(1,000,000)(1,668)
Net cash provided by financing activities20,536,40011,166,457
Impact of currency translation on cash48317
Change in cash(874,289)(180,434)
Cash, beginning 1,679,0601,789,913
Cash, end 804,7711,609,479

The disclosed notes are integral to these condensed consolidated interim financial statements

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 statements regarding the planned conference call, DMG’s strategies and plans, increasing hashrate and the anticipated timelines, the expected arrival and operation of the hydro miners and containers, the development of Systemic Trust including generating revenues, the potential for a 2-megawatt prefabricated data center, improving fleet efficiency and continuing to execute on Core+ software initiatives and plans to monetize bitcoin transactions, the continued investment in Bitcoin network software infrastructure and applications, developing and executing on the Company’s products and services, increasing self-mining, efforts to improve the operation of its mining fleet, 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 (which includes energy 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.


FAQ

What were DMG Blockchain Solutions (DMGGF) Q2 2025 earnings?

DMG reported revenue of $12.6 million, up 26% YoY, with a net loss of $0.02 per share. The company mined 91 bitcoin and maintained $61.9 million in cash, short-term investments and digital assets.

How many bitcoin did DMGGF mine in Q2 2025?

DMG Blockchain Solutions mined 91.27 bitcoin in Q2 2025, down from 97 bitcoin in Q1 2025, and held a total of 458.07 bitcoin at quarter-end.

What is DMG Blockchain's current hashrate?

DMG's average hashrate in Q2 2025 was 1.76 EH/s, representing an 8% increase from Q1 2025 and an 82% increase from Q2 2024.

How much cash and digital assets does DMGGF have?

As of Q2 2025, DMG held $61.9 million in cash, short-term investments and digital assets, down 3% from Q1 2025 but up 42% from Q2 2024.

What new initiatives is DMG Blockchain pursuing?

DMG is expanding into AI with a 2MW prefabbed data center purchase, developing the Systemic Trust digital asset custody platform, and engaging with Canadian public and private entities for off-take agreements.
Dmg Blockchain S

OTC:DMGGF

DMGGF Rankings

DMGGF Latest News

DMGGF Stock Data

41.69M
198.45M
2.14%
0.1%
Capital Markets
Financial Services
Canada
Delta