GREAT NEWS RELEASE. 1.0 EH/s of the newest generation of mining equipment specific to immersion cooling and 2.0 EH/s in the second half of 2021.
DMG is gearing up to become sucessful.
VANCOUVER, British Columbia, Feb. 16, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V:DMGI) (DMGGF:OTCQB US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, is pleased to announce updates and plans for its infrastructure and immersion cooling deployment initiative at its flagship cryptocurrency facility in anticipation of adding additional miners.
As previously reported, the Company has sufficient funds on hand to complete the retrofitting of the first 30 megawatts of infrastructure to immersion cooling, which will increase the Company's future bitcoin mining capacity to approximately 1.0 Exahash (EH/s) when complete as planned in the first half of 2021. Immersion cooling requires approximately 30% less bitcoin miners than air cooled for the same hashrate, leading to significant capital cost reductions over air cooled systems.
DMG expects completion of the facility’s retrofitting of the next 30MW to reach a total of 60MW in the second half of 2021. Upon completion of the infrastructure and retrofitting upgrades and access to power supply, DMG’s facility will then have a future capacity for approximately 2.0 Exahash of immersion cooled Bitcoin mining utilizing 60MW of power.
In anticipation of the retrofitting timelines, DMG is currently in discussions with leading Bitcoin mining equipment manufacturers for a purchase order that would give DMG the right to purchase, in stages, a minimum of 1.0 EH/s of the newest generation of mining equipment specific to immersion cooling. Various manufacturing companies are developing specific immersion cooling Bitcoin miners which DMG has been reviewing for the optimal purchase for its retrofitting.
The future deployment of at least 1.0 EH/s of immersion cooled mining in the first half of this year is expected to occur in stages based on the amount of capital raised through equity and/or debt financing.
DMG's COO, Sheldon Bennett, commented:
“DMG’s self-mining strategy is to deploy capital into the most efficient technology possible to ensure the best possible ROI on miners and greatest revenue potential over the life of the hardware. Upon the formalization of the Digital Currency Miners of North America (DCMNA) pool, DMG will connect all its miners to the DCMNA, thus increasing mining margins. Depending on the size of the purchase order(s), DMG may seek financial instruments to aid in completing this deployment of new miners.”
A large-scale purchase of mining equipment is subject to certain conditions including, but not limited to, DMG having sufficient funds to complete the purchase and the execution of a definitive contract setting forth the terms and conditions. Depending on the size of the purchase order, DMG may need to raise funds through the issuance of equity and/or debt financing.
The Company expects COVID-19 to affect the availability and timing of mining equipment, including increased shipping costs. If additional mining equipment is purchased for the Christina Lake facility, the Company expects longer than normal delivery times. As a result of this (which is happening industry-wide), DMG is using this time to upgrade its facility to be prepared for this future deployment of Bitcoin miners.
In addition to the physical retrofitting of the Christina Lake data centre, there are specific major components that are underway in parallel, to ensure the best operational performance from capital investments.
In order to ensure that the retrofitting and the addition of new infrastructure at the Christina Lake data center maintains DMG’s timelines, the Company has selected a British Columbia construction and manufacturing firm to oversee design, procurement, proprietary manufacturing and installation during this project. This will greatly aid DMG during the Covid-19 constrained supply chain challenges that most companies are facing in this industry.
“DMG’s goal is to be the most efficient and technologically advanced mining company in the entire Bitcoin mining industry,” said DMG’s COO, Sheldon Bennett. “Our immersion cooling deployment initiative is just the beginning of numerous technological innovations to be developed and implemented by DMG as part of our rapid growth strategy in the coming years, and the best is yet to come.”
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hashrate may materially affect the future performance of DMG’s production of Bitcoin, and future operational results could also be materially affected by the price of Bitcoin and an increase in hashrate mining difficulty.
