Revenues: $5.9 million in the September quarter, down 29% from the previous quarter.
Full year revenue: $33.9 million, up 21% year over year.
Bitcoin mined: 65 Bitcoins in September quarter, down 26% quarter-on-quarter. The total for the year was 503 Bitcoins, a decrease of 43% from the previous year.
Cash and digital currency balances: $36 million at end of September quarter, down 9% sequentially and up 90% year over year.
Operating and maintenance costs: $4.6 million in the September quarter, down 1% from the prior quarter.
Net Income: September quarter loss of $8.4 million, or $0.05 per share.
Full year net income: A loss of $5.2 million, or a loss of $0.03 per share.
Operating cash flow: $1.3 million in the September quarter. For the full year, sales were $8.2 million, an increase of 69% from the previous year.
Fleet hash rate: 1.7 exahash, goal is 2.1 exahash.
Fleet efficiency: Targeting 24.6 Joules in the September quarter and 21 Joules with future upgrades.
Depreciation: $5.8 million in the September quarter, an increase of 14% from the prior quarter.
Full-year depreciation and amortization: $18.9 million, down 13% from the prior year.
Release date: December 19, 2024
For a complete record of financial statements, see Complete Record of Financial Statements.
DMG Blockchain Solutions Inc (DMGGF) has achieved an important milestone in its Core+ strategy, focused on building a carbon-neutral ecosystem with Terra Pool and Systemic Trust.
The company is in the final stages of obtaining a Systemic Trust registration certificate, which will enable secure storage of digital assets.
DMG's partnership with the Malahat Nation has the potential for total investment to exceed $1 billion, representing significant growth opportunities.
The company increased its hashrate by more than two-thirds this quarter, leading to increased Bitcoin production and improved fleet efficiency.
Leveraging its unique relationships with Indigenous bands, DMG is positioned to expand into AI with a differentiated strategy, focused on customer acquisition for Systemic Trust and Terra Pool.
DMG Blockchain Solutions Inc (DMGGF) saw a 29% decline in revenue in the September quarter, mainly due to lower self-mining revenue.
The company reported a net income loss of $8.4 million in the September quarter, resulting in negative operating cash flow.
DMG's Bitcoin production fell 26% quarter-on-quarter, impacted by the halving event and increased network difficulties.
The company is facing challenges reaching final agreements for new data center sites, leading to delays in expansion plans.
DMG's recent capital raise has been dilutive, and the company expects to need further capital for new site development and AI projects.
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Q: If we have an MOU with the Malahat Nation, how can we be confident that we can turn this into a final agreement? A: In fact, we have a final agreement with the Malahat Nation. We are awaiting signature until we have arranged the offtake agreement and execution partner. We expect to sign a final contract in the coming months. – Sheldon Bennett, CEO
Q: What impact do you expect the Malahat partnership to have on revenue? A: We expect our investment in generative AI servers to be recouped in 3-5 years, potentially amounting to hundreds of millions of dollars. There is a gender. Revenue should follow accordingly over its payback period. – Sheldon Bennett, CEO
Q: What are Systemic Trust's plans for customer acquisition and how much revenue do you expect it to generate next year? A: Systemic CEO Laurence Strong and his team are preparing for client onboarding at Systemic Trust. We have made progress. We are optimistic that upon regulatory approval, onboarding will begin early next year and revenues will be realized soon. The exact forecast will become clearer in the next one or two quarters. – Sheldon Bennett, CEO
Q: What are your plans to generate revenue from Terra Pool? A: Terra Pool's software and user experience have been revamped to enable a seamless transition for our clients. The main goal is for Terra Pool to provide a steady stream of carbon-neutral blocks, allowing Systemic Trust clients to send Bitcoin in a carbon-neutral manner. Additional revenue from Terra Pool is considered supplemental. – Sheldon Bennett, CEO
Q: As the announced new mining sites continue to be delayed, are they expected to materialize? A: We are still working towards an agreement and remain optimistic. The recent rise in Bitcoin prices has influenced the discussion, which we are actively addressing. The aim is to sign a contract and begin procurement for early construction in the new year. – Sheldon Bennett, CEO
For a complete record of financial statements, see Complete Record of Financial Statements.
This article first appeared on GuruFocus.
