Dmg Blockchain Solutions (DMGI) investor relations material

Executive summary

• Focused on accelerating core data center operations toward AI infrastructure and expanding digital asset financial services, with a strategic focus on converting the Christina Lake facility into a 50+ MW AI data center.

• Revenue for Q1 2026 was $11.2 million, down 2% sequentially and 4% year-over-year, mainly due to lower Bitcoin mining revenues, partially offset by a $1.5 million energy efficiency incentive.

• 69 Bitcoin were mined in Q1 2026, down from 72 in Q4 2025 and 97 in Q1 2025, reflecting lower average Bitcoin economics.

• Actively pursuing government partnerships and new client contracts, including with the Malahat Nation and for the ISED RFI.

• Systemic Trust and custody services positioned as key growth drivers in digital asset financial services.

Financial highlights

• Q1 2026 revenue was $11.2 million, down 2% sequentially and 4% year-over-year, with self-mining revenue down 16% due to lower Bitcoin price and network generation, partly offset by a one-time $1.5 million energy incentive.

• 68.5–69 Bitcoin mined in Q1 2026, down from prior quarters; average hash rate up 10% sequentially and 9% year-over-year to 1.76 exahash.

• Operating and maintenance costs were $6.7 million, stable year-over-year, with energy costs benefiting from mild winter conditions.

• Net loss for Q1 2026 was $2.2 million or -$0.01 per share, an improvement from a $3.1 million loss in Q1 2025.

• Cash, short-term investments, and Bitcoin/digital asset holdings totaled $58.6 million at Q1 2026 end, down 10% from year-end 2025.

Outlook and guidance

• Management is focused on AI data center conversion and building out Digital Asset Financial Services, targeting AI off-takers and government partnerships for future growth.

• No specific guidance provided for Bitcoin holdings management due to market uncertainty.

• Expecting hash rate to remain steady and fleet efficiency to improve slightly in the March quarter.

• Hosting revenue expected to decline to near zero in fiscal 2026, but potential for new client onboarding.

• Anticipates need for further equity or debt financing to reach 50 MW AI capacity.