Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS ANNOUNCES RELATIONSHIP WITH SYGNUM BANK TO PROVIDE CREDIT FACILITY

DMG Blockchain Solutions Inc. has established a relationship with Sygnum Bank, a Swiss bank specialized in servicing crypto-native companies, as a strategic banking partner providing $9-million (U.S.) (equivalent) in a credit facility to increase its operational capacity ahead of the upcoming bitcoin halvening expected in April, 2024. The primary use of proceeds is for the purchase of 4,550 T21 190 TH/s (terahashes per second) bitcoin miners from Bitmain Technologies for $12,103,000 (U.S.) ($14 (U.S.)/TH/s), which was previously announced in December, 2023.

With a first financing tranche of $5.6-million (U.S.) already disbursed, DMG has been able to fulfill part of its payment obligation to Bitmain without the need to liquidate its bitcoin holding. DMG believes that modest amounts of debt enable it to better optimize its balance sheet, especially as it can help maintain its healthy bitcoin holding as well as lower its weighted average cost of capital, both of which should be positive for shareholders. In addition to this $9-million (U.S.) credit facility, DMG intends to use some of its existing cash toward the purchase of these miners from Bitmain.

The loan is interest bearing at an annual rate of 7.8 per cent for an indefinite term. Sygnum has the right to terminate the agreement at any time, at which time the loan would be due immediately. The loan is secured against the company's digital currency assets of 237.8 BTC, which are pledged and deposited with Sygnum. Because the collateral is subject to fluctuations in value, the company may be required to provide additional collateral in order to restore the security margin on the loan. DMG may repay the amount of debt outstanding at any time.

DMG's chief executive officer, Sheldon Bennett, commented: "We are very happy to announce this partnership with Sygnum as a strategic banking partner. We look forward to working closely with Sygnum Bank, as its mission includes decarbonization of the bitcoin ecosystem, a value which we very much share."

Nestor Palao, Sygnum Bank's head of DLT and corporate clients, commented, "As we see our footprint in the bitcoin mining ecosystem growing and including several leading publicly listed players, Sygnum is pleased to work with DMG Blockchain Solutions in providing tailored service for its banking and lending needs and support growth in carbon-neutral crypto asset mining."

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.

We seek Safe Harbor.