Yahoo Finance

• Revenue: $5.9 million in the September quarter, down 29% from the previous quarter.

• Full Year Revenue: $33.9 million, up 21% year-over-year.

• Bitcoin Mined: 65 bitcoins in the September quarter, down 26% sequentially; 503 bitcoins for the full year, down 43% year-over-year.

• Cash and Digital Currency Balance: $36 million at the end of the September quarter, down 9% sequentially, up 90% year-over-year.

• Operating and Maintenance Costs: $4.6 million in the September quarter, down 1% from the prior quarter.

• Net Income: Loss of $8.4 million in the September quarter, or $0.05 per share.

• Full Year Net Income: Loss of $5.2 million, or $0.03 per share.

• Cash Flow from Operations: $1.3 million in the September quarter; $8.2 million for the full year, up 69% year-over-year.

• Fleet Hash Rate: 1.7 exahash, with a target to reach 2.1 exahash.

• Fleet Efficiency: 24.6 joules in the September quarter, targeting 21 joules with future upgrades.

• Depreciation Expense: $5.8 million in the September quarter, up 14% from the prior quarter.

• Full Year Depreciation: $18.9 million, down 13% year-over-year.

• Warning! GuruFocus has detected 2 Warning Sign with DMGGF.

Release Date: December 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DMG Blockchain Solutions Inc (DMGGF) achieved significant milestones in its Core+ strategy, focusing on building a carbon-neutral ecosystem with Terra Pool and Systemic Trust.

• The company is in the final stages of obtaining a certificate of registration for Systemic Trust, which will enable secure custody of digital assets.

• DMG's partnership with the Malahat Nation could potentially drive a total investment exceeding $1 billion, indicating a strong growth opportunity.

• The company has increased its hash rate by over two-thirds this quarter, leading to higher Bitcoin production and improved fleet efficiency.

• DMG is positioned to expand into AI with a differentiated strategy, leveraging unique relationships with indigenous bands and focusing on customer acquisition for Systemic Trust and Terra Pool.

Negative Points

• DMG Blockchain Solutions Inc (DMGGF) experienced a 29% decrease in revenue in the September quarter, primarily due to a drop in self-mining revenue.

• The company reported a net income loss of $8.4 million in the September quarter, with a negative cash flow from operations.

• DMG's Bitcoin production decreased by 26% sequentially, impacted by the halving event and increased network difficulty.

• The company faces challenges in reaching definitive agreements for new data center sites, leading to delays in expansion plans.

• DMG's recent capital raise resulted in dilution, and the company anticipates further capital requirements for new site development and AI projects.