DMG Blockchain Solutions Inc., a vertically integrated blockchain and data center technology company, has announced significant expansion plans for its mining operations. The company has invested in advanced Bitmain hydro miners, acquiring a total of 5 megawatts of hydro mining containers, valued at approximately $5 million. These state-of-the-art hydro miners offer an efficiency rate of 15 J/TH, costing $15 per TH/s, highlighting the company’s focus on enhancing its operational performance.
This latest acquisition builds on DMG’s earlier purchase of 1 megawatt of hydro miners, reinforcing its strategy to optimize both efficiency and hashrate. The initial 1-megawatt tranche of hydro miners, along with six 1-megawatt containers, is scheduled for installation by the end of December 2024. The additional 5 megawatts of miners are expected to be operational by the end of February 2025. Once fully deployed, these installations are projected to add 0.4 exahashes per second (EH/s) to the company’s total hashrate, elevating it to 2.1 EH/s with a fleet efficiency of 21 J/TH by early 2025.
Strategic Investments in Infrastructure
The expansion is being fueled by DMG’s recent successful fundraising campaign, which bolstered the company’s cash reserves by $16 million. Approximately $7 million of this amount has been allocated to purchasing critical mining equipment to support the company’s growth strategy. DMG is also exploring additional opportunities to invest in expanding its mining capacity and advancing its subsidiary, Systemic Trust, which is focused on digital asset custody.
In line with its innovation-driven approach, the company is evaluating the potential for investments in artificial intelligence (AI) infrastructure. These initiatives align with DMG’s memorandum of understanding (MOU) for a joint venture with the Malahat Nation, which aims to integrate cutting-edge technologies into its operations.
Flexibility to Adapt and Grow
The company remains committed to strategic growth and shareholder value. DMG’s CEO, Sheldon Bennett, highlighted the importance of their recent fundraising efforts, noting that the strengthened cash position enables them to focus on both immediate and long-term goals. Bennett outlined plans to deploy capital effectively to maximize returns, which include fulfilling financial commitments to position Systemic Trust as a fully qualified Canadian trust company.
DMG also plans to leverage its cash reserves to adapt to favorable market conditions, such as the recent rally in bitcoin prices. The company intends to accumulate bitcoin while making targeted investments to increase its hashrate and further develop its Core+ strategy. Additionally, DMG is prioritizing the deployment of next-generation AI computing infrastructure, demonstrating its commitment to staying at the forefront of technological advancements.
A Vision for the Future
DMG’s expansion and investment plans underscore its ambition to solidify its position as a leader in the blockchain and AI sectors. By upgrading its mining operations and diversifying into AI, the company is laying the groundwork for sustained growth. With advanced hydro miners, robust cash reserves, and a focus on innovative solutions, DMG aims to deliver enhanced value to its stakeholders while remaining adaptable to evolving industry trends.