VANCOUVER, British Columbia, Dec. 18, 2024 (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 fourth quarter and full year 2024 financial results. All financial references are in Canadian Dollars unless specified otherwise.
Q4 and Full Year 2024 Financial Results Highlights
- Revenue: $5.9 million in Q4 2024, down 29% sequentially; $33.9 million for the full year 2024, up 21% from the previous year
- Bitcoin Mined: 65 bitcoin mined in Q4 2024, reflecting a 26% sequential decrease due to the April halvening and network difficulty increases; 502.5 bitcoin mined in the full year 2024, down 43% from the previous year
- Cash Flow from Operations: $1.3 million in Q4 2024, contributing to $8.2 million for the full year 2024, a 69% increase from the previous year
- Hashrate: 0.96 EH/s for the full year 2024, up 21% from the previous year; now operating at 1.7 EH/s with plans to reach 2.1 EH/s by February 2025
- Fleet Efficiency: 24.6 J/TH in Q4 2024 and 26.7 J/TH for the full year 2024, an increase of 9% from the previous year; further improved to 23 J/TH in the current quarter with a target of 21 J/TH in February based on the Company's previously announced 6 megawatt hydro miner deployment
- Cash and Digital Assets: $36.0 million as of quarter-end Q4 2024, up 90% year-over-year
- Net Loss: -$0.03 per share for the full year 2024 versus -$0.10 per share in 2023
Financial Year 2024 Financial Results Review
Revenue increased by $6.0 million to $33.9 million in 2024 from $27.9 million in 2023. The increase is attributable to increases in digital currency mining revenues supported by a 125% increase in the average price of bitcoin over the year as compared to the previous year. The Company also added new mining equipment received in the year.
Operating and maintenance expenses for 2024 were $19.7 million, up from $16.8 million in the previous year. This increase is primarily attributed to a $2.6 million rise in utilities expenses, driven by expanded digital currency mining operations as miners were added during the year.
Research and development costs for 2024 were $2.1 million compared to $2.0 million in the previous year. These costs include salaries and wages for work on software, mainly on Systemic Trust, Terra Pool, Helm and Explorer, and subscription costs for servers related to development software.
General and administrative costs for 2024 were $5.9 million, up from $3.7 million in the previous year. General and administrative costs consist mostly of wages, professional fees, consulting fees and financing costs. These costs increased during the year mainly due to the ramp up of operations of the Company's wholly owned subsidiary Systemic Trust. The Company also incurred additional interest expense related to its loan with Sygnum Bank, which contributed to financing costs increasing $0.6 million.
Depreciation for 2024 was $18.9 million, down from $21.9 million in the previous year. The decrease is due to the timing of new installations, which did not ramp up until the later half of 2024.
Net loss decreased in 2024 by $11.2 million to $5.2 million from $16.5 million in the previous year. The decrease is a result of increases in revenue of $5.9 million, unrealized gains on digital currency of $4.9 million, realized gains on the sale of digital currency of $2.0 million and an overall decrease in depreciation on fixed assets of $3.0 million, offset by an overall increase in operating and maintenance costs of $2.9 million.
Regarding our Balance Sheet, total assets as of September 30, 2024 were $103.9 million, up from $82.6 million the previous year, an increase of $21.3 million. The increase is mostly attributable to an increase in digital currency of $17.2 million due to the increase in the fair value of BTC as compared to the previous year. Net property and equipment increased by $6.4 million, offset by a decrease in assets held for sale of $3.5 million.
Selected financial and operating information should be read in conjunction with the Company's audited consolidated financial statements and related Management's Discussion and Analysis for the year ended September 30, 2024, available at www.sedarplus.ca. All financial information in this news release is prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
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.
Fourth Quarter and Full Year 2024 Results Conference Call Details
The Company will host a conference call to review its results and provide a corporate update on Thursday, December 19, 2024 at 4:30 PM ET. Participants should register for the call via the registration link.
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 investors@dmgblockchain.com, using the subject line 'Conference Call Question Submission,' through 2:00 PM ET on December 19, 2024.
About DMG Blockchain Solutions Inc.
DMG is a publicly traded, sustainably-focused and vertically integrated blockchain and data center technology company that develops, manages and operates end-to-end digital solutions to monetize the blockchain and generative artificial intelligence compute ecosystems. DMG's businesses are segmented into two business lines under the Core (data center infrastructure) and Core+ (software and services) strategies and unified through DMG's vertical integration.
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
| DMG Blockchain Solutions Inc.
Consolidated Statements of Financial Position (Expressed in Canadian Dollars) | ||||
| As at
September 30, 2024 | As at September 30, 2023 | |||
| ASSETS | $ | $ | ||
| Current | ||||
| Cash and cash equivalents | 1,679,060 | 1,789,913 | ||
| Amounts receivable | 4,910,251 | 2,476,679 | ||
| Digital currency | 34,327,703 | 17,142,683 | ||
| Prepaid expense and other current assets | 337,042 | 193,512 | ||
| Marketable securities | 316,803 | 386,984 | ||
| Assets held for sale | - | 3,451,024 | ||
| Total current assets | 41,570,859 | 25,440,795 | ||
| Long-term deposits | 2,047,682 | 3,256,324 | ||
| Property and equipment | 53,798,978 | 47,398,585 | ||
| Long-term investments | 45,000 | 45,000 | ||
| Amount recoverable | 6,406,462 | 6,446,251 | ||
| Total assets | 103,868,981 | 82,586,955 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current | ||||
| Trade and other payables | 5,183,107 | 4,178,104 | ||
| Deferred revenue | - | 64,361 | ||
| Current portion of lease liability | 43,483 | 50,555 | ||
| Loans payable | 13,928,462 | 1,272,397 | ||
| Total current liabilities | 19,155,052 | 5,565,417 | ||
| Long-term lease liability | 51,842 | 41,202 | ||
| Total liabilities | 19,206,894 | 5,606,619 | ||
| Shareholders' Equity | ||||
| Share capital | 113,086,455 | 110,820,540 | ||
| Reserves | 45,853,100 | 45,507,272 | ||
| Accumulated other comprehensive income | 10,448,614 | 149,044 | ||
| Accumulated deficit | (84,726,082 | ) | (79,496,520 | ) |
| Total shareholders' equity | 84,662,087 | 76,980,336 | ||
| Total liabilities and shareholders' equity | 103,868,981 | 82,586,955 | ||
| DMG Blockchain Solutions Inc. Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars, except for number of shares) | ||||||
| For the years ended September 30, | ||||||
| 2024 | 2023 | |||||
| $ | $ | |||||
| Revenue | 33,900,083 | 27,940,995 | ||||
| Expenses | ||||||
| Operating and maintenance costs | 19,733,886 | 16,797,262 | ||||
| General and administrative | 5,860,448 | 3,729,643 | ||||
| Share-based compensation | 1,795,391 | 1,804,551 | ||||
| Research | 2,126,276 | 1,951,868 | ||||
| Provision for bad debt | 14,386 | 343,082 | ||||
| Depreciation | 18,946,204 | 21,902,282 | ||||
| Total expenses | 48,476,591 | 46,528,688 | ||||
| Operating loss before other items | (14,576,508 | ) | (18,587,693 | ) | ||
| Other income (expense) | ||||||
| Interest and other income | 634,510 | 506,610 | ||||
| Gain on disposition of assets | 4,809 | 70,429 | ||||
| Foreign exchange loss | (71,996 | ) | (118,280 | ) | ||
| Impairment of digital currencies | (345,160 | ) | (102,735 | ) | ||
| Loss on modification of amounts recoverable | (674,300 | ) | (692,859 | ) | ||
| Decline in fair value of investments | (609,120 | ) | (202,725 | ) | ||
| Provision of sales tax receivable | (896,205 | ) | (1,805,343 | ) | ||
| Unrealized revaluation gain on digital currency | 9,178,788 | 4,301,472 | ||||
| Realized gain on sale of digital currency | 2,195,801 | 183,954 | ||||
| Loss on change in fair value of marketable securities | (70,181 | ) | (14,558 | ) | ||
| Net loss | (5,229,562 | ) | (16,461,728 | ) | ||
| Other comprehensive income | ||||||
| Items that may be reclassified subsequently to income or loss: | ||||||
| Revaluation gain on digital assets | 10,293,248 | 19,465 | ||||
| Cumulative translation adjustment | 6,322 | 7,955 | ||||
| Net income (loss) and comprehensive income (loss) | 5,070,008 | (16,434,307 | ) | |||
| Basic and diluted loss per share | ($0.03 | ) | ($0.10 | ) | ||
| Weighted average number of shares outstanding | ||||||
| - basic and diluted | 169,226,226 | 167,709,852 | ||||
| DMG Blockchain Solutions Inc. Consolidated Statements of Cash Flows (Expressed in Canadian Dollars) | ||||
| For the years ended September 30, | 2024 | 2023 | ||
| $ | $ | |||
| OPERATING ACTIVITIES | ||||
| Net loss for the period | (5,229,562 | ) | (16,461,728 | ) |
| Non-cash items: | ||||
| Accretion | 31,003 | 52,570 | ||
| Depreciation | 18,946,204 | 21,902,282 | ||
| Share-based payments | 1,795,391 | 1,804,551 | ||
| Unrealized gain on revaluation of digital currency | (9,178,788 | ) | (4,350,308 | ) |
| Unrealized foreign exchange loss (gain) | (23,924 | ) | 121,576 | |
| Gain on sale of assets | (4,809 | ) | (70,429 | ) |
| Unrealized loss on marketable securities | 70,181 | 14,558 | ||
| Impairment of digital currencies | 345,160 | 102,735 | ||
| Impairment of investment | 609,120 | 202,725 | ||
| Provision for sales tax receivable | 896,205 | 1,805,343 | ||
| Provision for bad debt | 14,386 | 343,082 | ||
| Digital currency related revenue | (31,612,827 | ) | (26,356,393 | ) |
| Digital currency sold | 34,303,469 | 23,087,300 | ||
| Realized gain on sale of digital currency | (2,195,801 | ) | (183,954 | ) |
| Non-cash interest income | (628,575 | ) | (600,471 | ) |
| Accrued interest | 491,926 | (129 | ) | |
| Loss on amount recoverable modification | 674,300 | 692,859 | ||
| Changes in non-cash operating working capital: | ||||
| Prepaid expenses and other current assets | (148,530 | ) | 45,973 | |
| Amounts receivable | (1,973,658 | ) | 1,732,308 | |
| Amounts recoverable | - | (9,442 | ) | |
| Deferred revenue | (52,435 | ) | (39,317 | ) |
| Trade and other payables | 1,082,095 | 1,031,284 | ||
| Net cash provided by operating activities | 8,210,531 | 4,866,975 | ||
| INVESTING ACTIVITIES | ||||
| Purchase of property and equipment | (2,387,295 |
| ||