02:03:35 EDT Thu 23 Sep 2021
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DMG Blockchain Solutions Inc
Symbol DMGI
Shares Issued 108,354,096
Close 2021-02-09 C$ 1.48
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DMG Blockchain prepares facility for deployment

2021-02-10 10:35 ET - News Release

Mr. Daniel Reitzik reports


DMG Blockchain Solutions Inc. is pleased with the progress of its extensive long-term immersion cooling feasibility study, allowing the company to proceed with needed preparations for large-scale deployment in 2021. Immersion cooling will enable DMG to grow its operations in a sustainable way, as well as to reinforce its leadership in the area of innovation-driven Bitcoin mining.

DMG is developing its proprietary immersion cooling system which, compared with more conventional air-cooled mining rigs commonly used by most crypto mining companies, will add significant operations gains at a lower capital expenditure. Prior industry research and discussion with immersion providers and industry vendors have shown a minimum hashrate increase of 30 per cent for crypto servers along with a decreased overall power consumption per hashrate of up to 10 per cent, which constitutes significant cost saving potential for DMG's operations. This, combined with lower capital expenditures, significantly lowers return on investment time per megawatt of deployed mining, by up to 25 per cent.

DMG's existing Christina Lake substation is rated for 85 megawatts, of which 60 megawatts in transformers and other required high- and middle-voltage electrical equipment have already been fully installed. DMG's facility has a bitcoin mining capacity of two exahash per second of mining using air-cooled systems, and with immersion the company expects a 30-per-cent increase in hashrate per miner, and therefore bitcoin as well.

DMG has invested in its immersion cooling testing in order to increase both the amount of hashrate its facility can generate as well as to develop a technology which is designed to work with any miners, so the company does not become reliant on any single manufacturer. DMG is now preparing for the retrofitting of air-cooled infrastructure to immersion cooling in one-megawatt increments. Through this process, existing mining will continue with minimal to no downtime, thus not affecting the company's operations or clients.

"Through the use of immersion cooling, we believe we can obtain a 30-per-cent uplift on the labelled hashrate on any piece of mining equipment, or up to 130 TH/s from a standard 100 TH/s miner," said DMG's chief technology officer, Adrian Glover. "The long-term future of DMG's strategy is to run everything possible in immersion. After a short amortization period, our marginal additional infrastructure investment in the form of tanks, dry coolers, pumps, fluid etc., will create significant gains for DMG and create a competitive advantage beyond what air-cooling can achieve."

The company has sufficient finances on hand (for 30 megawatts) to complete the initial first phase of retrofitting of the facility. Future changes in the network-wide mining difficulty rate or Bitcoin hashrate may also materially affect the future performance of DMG's production of Bitcoin. Future results could be materially affected by the price of Bitcoin and an increase in hashrate mining difficulty.

Sheldon Bennett, DMG's chief operating officer, is participating in an expert panel along with Hive and Hut8, discussing its mining technologies at Canaccord's Digital Assets Symposium today at 12 p.m. EST.

About DMG Blockchain Solutions Inc.

DMG is a vertically integrated blockchain and cryptocurrency company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG's businesses are segmented into three main divisions: data centre operations, data analytics and forensics, and developing enterprise blockchains. DMG's data centre operations focus on earning revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients. DMG's data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms and law enforcement organizations. DMG's permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG's strategy is to become the domain experts across the business verticals it focuses on. DMG's management team includes seasoned crypto experts, forensic and financial professionals, and blockchain developers with deep relationships throughout the industry.

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