Dmg Blockchain Solutions (DMGI) investor relations material

Executive summary

• Revenue for Q3 2025 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 in the prior quarter, driven by lower operating costs and gains on digital currency sales.

• Progress in AI data center infrastructure, with focus on Canadian defense sector and partnerships to secure contracts.

• Carbon neutral Bitcoin ecosystem development continues, integrating products like Terra Pool, Helm, Reactor, and Explorer.

• Bitcoin mining remains foundational, with a goal to reach 3 exahash by year-end using nondilutive financing.

Financial highlights

• Operating and maintenance costs fell 14% sequentially, mainly due to lower energy rates, but rose to $6.5 million due to higher utilities and hosting fees.

• Cash, short-term investments, and Bitcoin holdings totaled $61.8 million, flat sequentially and up 56% year-over-year.

• Depreciation expense was $4.5 million (39% of revenue), up from 34% in the prior quarter, but down from $5.04 million year-over-year.

• Total assets grew to $133.6 million, up 3% sequentially and 20% year-over-year, driven by digital currency revaluation and short-term investments.

• Margin percentage on revenue less operating and maintenance costs rose to 44% from 40% in the prior quarter.

Outlook and guidance

• Material revenue from Systemic Trust deferred to next calendar year, but optimism remains for scaling over the next 12 months.

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

• AI data center contracts with Canadian defense sector are a key focus, with ongoing discussions and positive indications.

• Bitcoin mining expansion to 3 exahash targeted by year-end, with nondilutive financing options under consideration.

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