Dmg Blockchain Solutions (DMGI) investor relations material

Executive summary

• Revenue for the quarter was $11.6 million, down 8% sequentially but up 40% year-over-year.

• Net loss narrowed to $0.4 million, a significant improvement from -$3.3 million the prior quarter, driven by lower operating costs and gains on digital currency sales.

• Achieved 1.8 EH/s in Bitcoin mining during the quarter, with a short-term goal of 3 EH/s by year-end using non-dilutive financing.

• Expanded focus on AI infrastructure, targeting Canadian defense sector and enterprise markets, with key partnerships and government engagement underway.

• Cash, short-term investments, and digital assets totaled $62 million at quarter end.

Financial highlights

• Operating and maintenance expenses rose to $6.5 million, mainly due to higher utilities and hosting fees.

• General and administrative costs increased to $1.93 million, primarily from higher professional fees and wages.

• Depreciation expense was $4.48 million, among the lowest in the industry.

• EBIT (excluding D&A and stock-based comp) was $2.7 million, up from $2.5 million sequentially.

• Total assets reached $134 million, up 3% sequentially and 20% year-over-year.

Outlook and guidance

• Expecting material revenue from Systemic Trust and AI initiatives in the next 12 months.

• Hosting revenue expected to decline to near zero as capacity shifts to self-mining.

• Targeting 3 EH/s mining capacity by year-end, with expansion plans focused on retrofitting existing facilities.

• Management expects to continue generating cash and pursue new revenue growth through AI infrastructure and digital asset custody initiatives.

• Non-dilutive financing preferred for expansion, considering Bitcoin-backed loans and debt tied to AI contracts.