DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF)
(FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated
blockchain and cryptocurrency technology company, announces that it
has established a relationship with Sygnum Bank, a Swiss bank
specialized in servicing crypto-native companies, as a strategic
banking partner providing US$9 million (equivalent) in a credit
facility to increase its operational capacity ahead of the upcoming
Bitcoin halvening expected in April 2024. The primary use of
proceeds is for the purchase of 4,550 T21 190 TH/s bitcoin miners
from Bitmain Technologies for US$12,103,000 (US$14/TH/s), which was
previously announced in December 2023.
With a first financing tranche of US$5.6 million
already disbursed, DMG has been able to fulfill part of its payment
obligation to Bitmain without the need to liquidate its bitcoin
holding. DMG believes that modest amounts of debt enable it to
better optimize its balance sheet, especially as it can help
maintain its healthy bitcoin holding as well as lower its weighted
average cost of capital, both of which should be positive for
shareholders. In addition to this US$9 million credit facility, DMG
intends to use some of its existing cash towards the purchase of
these miners from Bitmain.
The loan is interest bearing at an annual rate
of 7.8% for an indefinite term. Sygnum has the right to terminate
the agreement at any time, at which time the loan would be due
immediately. The loan is secured against the Company’s digital
currency assets of 237.8 BTC, which are pledged and deposited with
Sygnum. Because the collateral is subject to fluctuations in value,
the Company may be required to provide additional collateral in
order to restore the security margin on the loan. DMG may repay the
amount of debt outstanding at any time.
DMG’s CEO Sheldon Bennett commented, “We are
very happy to announce this partnership with Sygnum as a strategic
banking partner. We look forward to working closely with Sygnum
Bank, as its mission includes decarbonization of the Bitcoin
ecosystem, a value which we very much share.”
Néstor Palao, Sygnum Bank’s Head of DLT &
Corporate Clients commented, “As we see our footprint in the
Bitcoin mining ecosystem growing and including several leading
publicly listed players, Sygnum is pleased to work with DMG
Blockchain Solutions in providing tailored service for its banking
and lending needs and support growth in carbon-neutral crypto asset
mining.”
About Sygnum
Sygnum is a global digital asset banking group,
founded on Swiss and Singapore heritage. Sygnum empowers
professional and institutional investors, banks, corporates and
digital ledger technology (DLT) foundations to invest in digital
assets with complete trust. The team enables this through our
institutional-grade security, expert personal service and a
portfolio of regulated digital asset banking, asset management,
tokenization and B2B services. In Switzerland, Sygnum holds a
banking license and has CMS and Major Payment Institution Licenses
in Singapore. The group is also regulated in the established global
financial hubs of Abu Dhabi and Luxembourg.
Sygnum’s crypto-native team of banking,
investment and digital asset technology professionals are building
a trusted gateway between the traditional and digital asset
economies that we call Future Finance. To learn more, please visit
www.sygnum.com.
Sygnum media contactDom Castley,
CMOT +41 58 508 21 01, media@sygnum.comSygnum Bank AG,
Uetlibergstrasse 134a, 8045 Zurich, Switzerland
About DMG Blockchain Solutions Inc.
DMG is an environmentally friendly vertically
integrated blockchain and cryptocurrency company that manages,
operates, and develops end-to-end digital solutions to monetize the
blockchain ecosystem. DMG’s sustainable businesses are segmented
into two business lines under the Core and Core+ strategies and
unified through DMG’s vertical integration.
For more information on DMG Blockchain Solutions
visit: www.dmgblockchain.comFollow @dmgblockchain on X and
subscribe to DMG's YouTube channel.
For further information, please
contact:
On behalf of the Board of
Directors,
Sheldon Bennett, CEO &
DirectorTel: 516-222-2560Email:
investors@dmgblockchain.comWeb: www.dmgblockchain.com
Investor Relations
Contact:CORE IR 516-222-2560
For Media
Inquiries:Jules AbrahamCORE
IR917-885-7378julesa@coreir.com
Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Cautionary Note Regarding
Forward-Looking Information
This news release contains forward-looking
information or statements based on current expectations.
Forward-looking statements contained in this news release include
statements regarding DMG’s use of the credit facility, the purchase
of new miners, DMG’s strategies and plans, the expected increase in
realized hashrate in the coming months, developing and executing on
the Company’s products and services, increasing self-mining,
efforts to improve the operation of its mining fleet, the launch of
products and services, events, courses of action, and the potential
of the Company’s technology and operations, among others, are all
forward-looking information.
Future changes in the Bitcoin network-wide
mining difficulty rate or Bitcoin hash rate may materially affect
the future performance of DMG’s production of bitcoin, and future
operating results could also be materially affected by the price of
bitcoin and an increase in hash rate mining difficulty.
Forward-looking statements consist of statements
that are not purely historical, including any statements regarding
beliefs, plans, expectations, or intentions regarding the future.
Such information can generally be identified by the use of
forwarding-looking wording such as "may", "expect", "estimate",
"anticipate", "intend", "believe" and "continue" or the negative
thereof or similar variations. The reader is cautioned that
assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including but not limited to, market and other conditions,
volatility in the trading price of the common shares of the
Company, business, economic and capital market conditions; the
ability to manage operating expenses, which may adversely affect
the Company's financial condition; the ability to remain
competitive as other better financed competitors develop and
release competitive products; regulatory uncertainties; access to
equipment; market conditions and the demand and pricing for
products; the demand and pricing of bitcoins; security threats,
including a loss/theft of DMG's bitcoins; DMG's relationships with
its customers, distributors and business partners; the inability to
add more power to DMG's facilities; DMG's ability to successfully
define, design and release new products in a timely manner that
meet customers' needs; the ability to attract, retain and motivate
qualified personnel; competition in the industry; the impact of
technology changes on the products and industry; failure to develop
new and innovative products; the ability to successfully maintain
and enforce our intellectual property rights and defend third-party
claims of infringement of their intellectual property rights; the
impact of intellectual property litigation that could materially
and adversely affect the business; the ability to manage working
capital; and the dependence on key personnel. DMG may not actually
achieve its plans, projections, or expectations. Such statements
and information are based on numerous assumptions regarding present
and future business strategies and the environment in which the
Company will operate in the future, including the demand for its
products, the ability to successfully develop software, that there
will be no regulation or law that will prevent the Company from
operating its business, anticipated costs, the ability to secure
sufficient capital to complete its business plans, the ability to
pay off any outstanding debt (including credit facilities), the
ability to achieve goals and the price of bitcoin. Given these
risks, uncertainties, and assumptions, you should not place undue
reliance on these forward-looking statements. The securities of DMG
are considered highly speculative due to the nature of DMG's
business. For further information concerning these and other risks
and uncertainties, refer to the Company’s filings on
www.sedarplus.ca. In addition, DMG’s past financial performance may
not be a reliable indicator of future performance.
Factors that could cause actual results to
differ materially from those in forward-looking statements include,
failure to obtain regulatory approval, the continued availability
of capital and financing, equipment failures, lack of supply of
equipment, power and infrastructure, failure to obtain any permits
required to operate the business, the impact of technology changes
on the industry, the impact of Covid-19 or other viruses and
diseases on the Company's ability to operate, secure equipment, and
hire personnel, competition, security threats including stolen
bitcoins from DMG or its customers, consumer sentiment towards
DMG's products, services and blockchain technology generally,
failure to develop new and innovative products, litigation, adverse
weather or climate events, increase in operating costs, increase in
equipment and labor costs, equipment failures, decrease in the
price of Bitcoin, failure of counterparties to perform their
contractual obligations, government regulations, loss of key
employees and consultants, and general economic, market or business
conditions. Forward-looking statements contained in this news
release are expressly qualified by this cautionary statement. The
reader is cautioned not to place undue reliance on any
forward-looking information. The forward-looking statements
contained in this news release are made as of the date of this news
release. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Additionally, the Company undertakes
no obligation to comment on the expectations of or statements made
by third parties in respect of the matters discussed above.
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