Dmg Blockchain Solutions (DMGI) Q4 2024 earnings summary

Executive summary

• Achieved major milestones in building a carbon-neutral ecosystem, including Systemic Trust nearing regulatory approval and Terra Pool software revamp.

• Fiscal 2024 revenue rose 21% year-over-year to $33.9 million, driven by higher bitcoin prices and new mining equipment.

• Expanded AI strategy through partnerships with indigenous bands, notably the Malahat Nation, with plans for significant generative AI compute capacity.

• Transitioned focus from software development to customer acquisition and operational execution for Core+ platforms.

• Net loss narrowed to $5.2 million in 2024 from $16.5 million in 2023, with EPS improving to -$0.03 from -$0.10.

Financial highlights

• Q4 2024 revenue was $5.9 million, down 29% sequentially; full year revenue was $33.9 million, up 21% year-over-year.

• Cash and digital currency holdings at quarter end were $36 million, up 90% year-over-year.

• Cash flow from operations was $1.3M in the quarter and $8.2M for the year, up 69% year-over-year.

• Operating and maintenance expenses rose to $19.7 million from $16.8 million, mainly due to higher utilities costs.

• Depreciation expense decreased to $18.9 million from $21.9 million.

Outlook and guidance

• Plans to grow hashrate to 2.1 EH/s by February 2025 and target 3 EH/s by year-end, leveraging hydro direct liquid cooling.

• Fleet efficiency targeted to improve to 21 J/TH by February 2025.

• Expecting a significant margin rebound in the current quarter due to higher Bitcoin prices and increased hash rate.

• Anticipating expenses to rise about 50% in FY2025 as investments in Systemic Trust and software platforms continue.

• AI data center buildouts at Christina Lake and Malahat sites expected to be operational in 2025 and 2026-2027, respectively.