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VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) — DMG Blockchain Options Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Firm”), a vertically built-in blockchain and cryptocurrency expertise firm, is happy to supply its shareholders with its enterprise outlook for 2021.
Not since late 2018 has the final crypto trade attracted a lot consideration; nevertheless, this new bull run is decidedly totally different from the previous as establishments corresponding to Paypal, BlackRock, and AllianceBernstein are all taking positions, predominantly in Bitcoin. With institutional traders driving crypto ahead as a substitute of retail, because it was in 2017 and 2018, it’s anticipated that governments and regulators usually are not far behind. To ensure that the financial scale which institutional traders carry, monetary compliance should go hand-in-hand. DMG’s earlier acquisition of Blockseer is targeted on compliance and good governance, placing it on the forefront of DMG’s 2021-2022 progress technique, together with its core crypto mining operations and third-party internet hosting providers.
Many DMG shareholders could not notice that DMG is not only a crypto mining firm. Quite, it’s a full-service, vertically built-in blockchain firm. DMG possesses core property that start with its 85MW energy substation and 27,000 sq. ft. knowledge centre in British Columbia, Canada. DMG’s Mine Supervisor software program optimizes mining operations, and DMG’s Blockseer Pool was created to fulfill the U.S. Authorities’s Workplace of Overseas Belongings Management (OFAC) compliance for Bitcoin addresses, in addition to offering the utmost stage of transparency, auditability, and company governance. DMG plans to monetize this cryptocurrency pool in partnership with Marathon Patent Group Inc. and different potential giant scale mining corporations. DMG’s vertical integration will proceed with the discharge of extra software program merchandise constructed upon the Blockseer model, that are targeted on bringing its shoppers deeper into DMG’s value-added providers past the Firm’s core crypto mining operations.
DMG’s Improvement Plans for 2021
So as to place the Firm for anticipated future modifications inside the cryptocurrency trade on the whole and the Bitcoin mining trade particularly, DMG’s administration is actively concerned in additional creating its company progress technique and adjusting it to the ever-changing market atmosphere, aiming at turning into one of many main innovation forces on this market. Due to this fact, the next current company developments and efforts are the muse of this long-term and profit-oriented technique for progress:
Specializing in DMG’s Core Enterprise – Christina Lake Knowledge Middle
DMG’s 2021 focus for its Christina Lake crypto mining operations is to finish its beforehand introduced retrofitting from air to immersion cooling, rising each its internet hosting and self-mining operations, in addition to to supply DMG flexibility in managing capital expenditures.
Christina Lake Knowledge Middle – Immersion Retrofitting
Prototyping and testing of immersion has proven miner hashing charges enhance as much as 30%, permitting for important reductions within the variety of miners operating for a similar hashing efficiency. With the rising value and provide shortages of crypto miners, having the capital to deploy is simply as vital as deploying in immersion cooling to make sure mining efficiency is optimized for each greenback spent. Immersion cooling just isn’t solely decreasing the variety of miners wanted to achieve hashrate targets, but additionally extending the life of those property and conserving the ability used to run air cooling followers. DMG will present additional updates on this immersion cooling expertise sooner or later after additional testing is accomplished.
DMG will proceed its testing in Q1 2021 because it begins main retrofitting of the info middle from air cooling to immersion cooling. By way of specializing in engineering, DMG won’t want to change the present low voltage infrastructure utilized in air cooing. As an alternative, it can use the identical footprint and incorporate immersion cooling tanks and piping, that are anticipated to avoid wasting considerably on retrofitting prices and shorten time strains considerably.
“Our future crypto mining effectivity will probably be terribly excessive, as we mix immersion cooling with Blockseer’s Mine Supervisor automation and DMG’s seasoned technical workforce working the Christina Lake Knowledge Middle. I imagine DMG will probably be difficult the crypto trade within the hashrate we will probably be producing relative to our energy consumption and operational prices,” stated DMG’s CTO, Adrian Glover. “For instance, if any given variety of miners would generate 1,000 petahash with out immersion cooling, DMG goes to have the ability to notice at the very least 1,300 petahash from the very same set of miners by implementing our immersion cooling expertise.”
With the transfer to immersion cooling, DMG goals to maximise its income on future self-mining in addition to have the ability to cost a premium for hosted shoppers who would like some great benefits of immersion cooling with out the added capital price of setting up themselves.
Christina Lake Knowledge Middle – Self Mining
DMG’s self-mining operations have benefited from continued progress in Bitcoin worth, permitting for elevated profitability from older mining gear. This has allowed sustained worthwhile mining operations as DMG transitions into immersion with subsequent technology mining applied sciences. As the availability of the most recent technology Bitcoin mining gear will probably be essential for DMG’s future progress, DMG is constant to work carefully with main miner producers and element producers of chips, boards and tanks. DMG intends to announce additional contractual gear and growth particulars shortly.
The Christina Lake Knowledge Middle, an 85-megawatt substation with a 27,000 sq. foot knowledge middle, resides within the Firm’s wholly-owned debt-free constructing on a 33 acre property. DMG’s funding on this infrastructure permits the corporate to pivot between self-mining and internet hosting for third events. This flexibility permits DMG to manage capital prices when wanted, and likewise make the most of essentially the most worthwhile income streams as they modify over time between internet hosting and self-mining.
The Firm expects the COVID-19 pandemic to have an effect on the supply and timing of mining gear, together with elevated prices from transport. If extra mining gear is bought for the Firm’s Christina Lake Facility, the Firm expects longer than regular supply instances from the varied gear producers and suppliers. As well as, relying on the variety of extra Bitcoin mining rigs bought by the Firm, extra capital could also be required.
Reaching DMG’s Purpose to be a Vertically Built-in Blockchain Firm – Blockseer
In early 2018, DMG acquired Datient, Inc., the Silicon Valley-based creator of Blockseer and Walletscore. The acquisition was a strategic transfer based mostly on the way forward for compliance and good governance within the cryptocurrency house. Blockseer highlights DMG’s foresight in guaranteeing the Firm develops the fitting expertise on the proper time, not solely to take part however to have the merchandise and expertise able to unlock adoption by regulatory compliance.
Blockseer – Software program Centered on Security & Safety & Regulatory & Compliance
During the last two years, the Blockseer workforce has targeted on strategically concentrating on the development of the crypto trade and the way Blockseer can guarantee its blockchain knowledge will create trade wanted merchandise. Latest modifications, together with institutional curiosity transferring into Bitcoin, as mentioned above, and the regulatory bulletins from the Workplace of the Comptroller of Forex (OCC) present that that is each a quickly creating and cutting-edge house. This message has been echoed by nominated Secretary of the Treasury J. Yellen, seeking to stop illicit transactions within the Bitcoin community. Thankfully, Blockseer is effectively positioned to assist pioneer this trade with our first two merchandise (Explorer and Walletscore) which permit customers to be correctly knowledgeable, conscious and guarded in an in any other case typically gray house. Increasing on Explorer and Walletscore, Blockseer launched its Pool platform which will probably be built-in with Blockseer’s Mine Supervisor, as one unified platform.
A assessment of Blockseer’s merchandise are as follows:
Blockseer: Security & Safety Platform
Blockseer Explorer (generally known as Intelligence) is an analytics device that allows monitoring cryptocurrency on each the Bitcoin and Ethereum blockchains.
Blockseer: Regulatory & Compliance Platforms
Blockseer Walletscore measures the propensity of a crypto-wallet to interact in prison exercise.
Blockseer Pool is the North American-based Bitcoin mining pool, offering real-time AML and bringing in a brand new normal in mining compliance and governance. In late 2020, DMG introduced that its U.S. subsidiary Blockseer was launching a North American-based Bitcoin mining pool targeted on governance, compliance, clear blocks, and audit-ready reporting for its customers.
Blockseer Mine Supervisor is software program which tracks mining amenities’ efficiency. The software program supplies automated administration of crypto mining knowledge facilities and distant container deployments.
“This isn’t a couple of elementary change of the community, nor a Bitcoin revolution, and we’re completely not de-anonymizing Bitcoin, however we have to be ready for persevering with technological growth and regulatory adjustment of the Bitcoin community because it wants oversight to fulfill each main institutional traders and official regulators,” stated DMG’s COO, Sheldon Bennett. “At DMG we’re completely dedicated to repeatedly assist and improve the worldwide Bitcoin community, and on the similar time we’re satisfied that the way forward for Bitcoin’s quickly rising mass adoption lies in regulatory compliance and market adoption as this nice cryptocurrency invention can’t and shouldn’t be abused by criminals and terrorists or confined to the darkest corners of the web. Bitcoin is a rising asset class and to ensure that Bitcoin to be adopted by giant establishments and be accepted by regulators, enhanced mining swimming pools will probably be wanted.”
DMG is happy that this new product caught the eye of main North American miners, main DMG to a brand new partnership.
DCMNA – A New Partnership
Lately DMG entered right into a memorandum of understanding (“MOU”) with Marathon Patent Group (NASDAQ: MARA) which then registered and created a 501c4 Non-Revenue named the Digital Forex Miners of North America (www.DCMNA.org). The DCMNA intends to license Blockseer’s Bitcoin mining Pool software program, a proprietary product created by DMG’s U.S. subsidiary. The group’s principal initiative is to create North America’s first cooperative Bitcoin mining pool so all its members can make the most of a cooperative community construction. Some key highlights embrace:
- DCMNA’s Inaugural Chairman is Merrick Okamoto, Government Chairman of Marathon Patent Group Inc. (NASDAQ: MARA), one of many world’s largest and main Digital Forex Mining corporations.
- DCMNA will foyer for useful modifications and insurance policies in North America for crypto mining. Financing of those efforts will probably be by a small proportion of pool charges allotted to its governing Committee.
- DCMNA permits its members to fulfill Anti Cash Laundering (AML) and Workplace of Overseas Belongings Management (OFAC) compliance by licensing Blockseer’s Pool which can embrace Blockseer’s Walletscore expertise.
- Because the Pool is a cooperative it can rebate all customers based mostly on hashrate contribution to assist with subsidizing pool charges and rising miner profitability
- As a member service group, the DCMNA will proceed to interact DMG’s Blockseer for continued enhancements to software program, merchandise, and creating extra incentives for DCMNA Members. Different member strategies and merchandise which profit North American miners will probably be reviewed for inclusion as effectively.
DMG believes that the trail to giant scale world adoption for digital property is vastly improved by mainstream adoption, from retail to institutional contributors. This course of has begun, and it’s crucial that each one contributors guarantee they meet present pointers, laws, and reporting standards. Blockseer leads DMG’s efforts to develop a vertically built-in blockchain firm the place compliance is the important thing to bridging the transition of cryptocurrencies to mainstream adoption.
See DMG’s information launch dated January 5, 2021 for additional info on the deliberate DCMNA.
Phrases of the MOU with Marathon embrace DMG licensing Blockseer’s expertise and related mental property to DCMNA, in addition to the administration of pool operations. Upon completion of a definitive settlement, detailed phrases and circumstances will probably be offered in an upcoming information launch. Pool operations are anticipated to start shortly after coming into right into a definitive settlement.
“DMG, as a vertically built-in Blockchain firm, focuses on all features of the Bitcoin blockchain starting on the mining ecosystem, by to securing the blockchain and processing Bitcoin transactions. Our enterprise divisions embrace self-mining, internet hosting third get together shoppers, growth and deployment of software program merchandise corresponding to Blockseer’s Mine Supervisor to handle mining operations, in addition to the current launch of Blockseer’s Pool, which aggregates Bitcoin mining hashrates and connects them to the Bitcoin protocol,” stated DMG’s CEO, Dan Reitzik.
For extra info on DMG Blockchain Options go to: www.dmgblockchain.com
On behalf of the Board of Administrators,
Daniel Reitzik, CEO & Director
For additional info, please contact:
About DMG Blockchain Options Inc.
DMG is a vertically-integrated blockchain and cryptocurrency firm that manages, operates, and develops end-to-end digital options to monetize the blockchain ecosystem. DMG’s companies are segmented into three predominant divisions: knowledge centre operations, knowledge analytics and forensics and creating enterprise blockchains. DMG’s knowledge centre operations give attention to incomes revenues from block rewards and transaction charges by mining primarily bitcoin, in addition to offering internet hosting providers for industrial mining shoppers. DMG’s knowledge analytics and forensic providers present technical experience software program merchandise corresponding to Blockseer Pool, Mine Supervisor and Walletscore, in addition to working with auditors, legislation companies, and legislation enforcement organizations. DMG’s permissioned blockchain expertise is targeted on creating enterprise software program for the availability chain administration of managed merchandise. DMG’s technique is to turn out to be the area professional throughout the enterprise verticals it focuses on. DMG’s administration workforce consists of seasoned crypto consultants, forensic & monetary professionals and blockchain builders with deep relationships all through the trade.
Cautionary Notice Concerning Ahead-Trying Info
This information launch comprises forward-looking info based mostly on present expectations. Statements concerning the Firm’s plans for the potential institution of its strategic long-term plans, its DCMNA pool and definitive settlement, to extend petahash (PH) by self-mining, buying extra bitcoin mining machines, elevating extra capital, using the entire Christina Lake Facility, the potential of the immersion cooling expertise, the anticipated optimistic outlook for the cryptocurrency and blockchain industries, value of bitcoin, plans and intentions, software program growth plans, different potential transactions, acquisition of shoppers, product growth, occasions, programs of motion, and the potential of the Firm’s expertise and operations, amongst others, are all forward-looking info. Ahead-looking statements include statements that aren’t purely historic, together with any statements concerning beliefs, plans, expectations or intentions concerning the longer term. Such info can typically be recognized by way of forwarding wanting wording corresponding to “could”, “count on”, “estimate”, “anticipate”, “intend”, “imagine” and “proceed” or the detrimental thereof or related variations. The reader is cautioned that assumptions used within the preparation of any forward-looking info could show to be incorrect. Occasions or circumstances could trigger precise outcomes to vary materially from these predicted, on account of quite a few identified and unknown dangers, uncertainties, and different elements, a lot of that are past the management of the Firm, together with however not restricted to, enterprise, financial and capital market circumstances; the flexibility to handle working bills, which can adversely have an effect on the Firm’s monetary situation; the flexibility to stay aggressive as different higher financed opponents develop and launch aggressive merchandise; regulatory uncertainties; entry to gear; market circumstances and the demand and pricing for merchandise; the demand and pricing of bitcoins; safety threats, together with a loss/theft of DMG’s bitcoins; DMG’s relationships with its clients, distributors and enterprise companions; the shortcoming so as to add extra energy to DMG’s amenities; DMG’s means to efficiently outline, design and launch new merchandise in a well timed method that meet clients’ wants; the flexibility to draw, retain and inspire certified personnel; competitors within the trade; the influence of expertise modifications on the merchandise and trade; failure to develop new and modern merchandise; the flexibility to efficiently preserve and implement our mental property rights and defend third-party claims of infringement of their mental property rights; the influence of mental property litigation that might materially and adversely have an effect on the enterprise; the flexibility to handle working capital; and the dependence on key personnel. DMG could not truly obtain its plans, projections, or expectations. Such statements and knowledge are based mostly on quite a few assumptions concerning current and future enterprise methods and the atmosphere by which the Firm will function sooner or later, together with the demand for its merchandise, the flexibility to efficiently develop software program, that there will probably be no regulation or legislation that may stop the Firm from working its enterprise, anticipated prices, the flexibility to safe enough capital to finish its enterprise plans, the flexibility to realize targets and the value of bitcoin. Given these dangers, uncertainties and assumptions, you shouldn’t place undue reliance on these forward-looking statements.
The securities of DMG are thought of extremely speculative because of the nature of DMG’s enterprise.
Elements that might trigger precise outcomes to vary materially from these in forward-looking statements embrace, failure to acquire regulatory approval, the continued availability of capital and financing, gear failures, lack of provide of apparatus, energy and infrastructure, failure to acquire any permits required to function the enterprise, the influence of expertise modifications on the trade, the influence of COVID-19 or different viruses and ailments on the Firm’s means to function, safe gear, and rent personnel, lower within the value of Bitcoin and different cryptocurrencies, competitors, safety threats together with stolen bitcoins from DMG or its clients, client sentiment in the direction of DMG’s merchandise, providers and blockchain expertise typically, failure to develop new and modern merchandise, litigation, enhance in working prices, enhance in gear and labor prices, failure of counterparties to carry out their contractual obligations, authorities laws, lack of key workers and consultants, and common financial, market or enterprise circumstances. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion. The reader is cautioned to not place undue reliance on any forward-looking info. The forward-looking statements contained on this information launch are made as of the date of this information launch. Besides as required by legislation, the Firm disclaims any intention and assumes no obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case. Moreover, the Firm undertakes no obligation to touch upon the expectations of, or statements made by third events in respect of the issues mentioned above.
Neither the TSX Enterprise Alternate nor its Regulation Service Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this information launch.