Daniel Reitzik reports
DMG BLOCKCHAIN SIGNS 7 - MEGAWATT BITCOIN MINING CONTRACT
DMG Blockchain Solutions Inc. has signed a mining-as-a-service (MaaS) contract with a major blockchain industry company to host approximately seven megawatts of bitcoin mining capacity.
Pursuant to the terms of the agreement, the new customer will pay DMG's hosting fee for approximately 4,200 newer-model bitcoin miners. The agreement term is three months, with automatic renewals every three months.
Supporting DMG's ability to fill its mining capacity is the recent large drop in bitcoin network computing power (hash rate), which enables large-scale industrial miners, like DMG customers, to still be profitable on an operational basis, even at current bitcoin pricing.
DMG's chief executive officer, Dan Reitzik, stated: "We are pleased that, just as we energized our new substation, we added a significant new client and we are now filling our capacity in accordance with DMG's MaaS growth strategy. We have been very careful to preserve capital in our first year as a public company by focusing on our MaaS hosting model. Given our solid position, we are thus prepared to fill the remainder of our capacity with new-generation mining equipment in the new year, which should result in additional cash flow generation for both DMG and our clients."
The company also announced that an existing client is expanding its hosting contract with DMG to include an additional 1,850 miners (approximately 2.5 megawatts).
As well, 1,650 older-model bitcoin miners (approximately two megawatts) from previous MaaS contracts have recently been turned off for up to 90 days for two clients, with the option to turn back on at any time during the 90 days before their contracts would terminate.
About DMG Blockchain Solutions Inc.
DMG is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial-scale crypto mine hosting (mining as a service), crypto mining, blockchain forensics/analytics and blockchain platform development.
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