Earnings release
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DMG Blockchain Solutions Reports Third Quarter 2025 Results News Release - Vancouver, British Columbia, August 25, 2025 - DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and data center technology company, today announces its fiscal third quarter 2025 financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company’s June 30, 2025 quarterly unaudited financial statements and management’s discussion and analysis thereof for an assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca. Q3 2025 Financial Results Highlights ● Revenue: $11.6 million in Q3 2025, down 8% from $12.6 million in Q2 2025 and up 40% from Q3 2024 ● Bitcoin Mined: 84 bitcoin, down from 91 bitcoin in Q2 2025 and 87 bitcoin in Q3 2024 ● Hashrate: 1.80 EH/s with fleet efficiency of 22.6 J/T, up 2% from Q2 2025 and up 89% from Q3 2024 ● Cash Flow from Operations: $18.0 million in Q3 2025, as the Company sold $15.0 million more bitcoin than it mined ● Cash, Short-term Investments and Digital Assets: $61.8 million as of quarter-end Q3 2025, about flat from Q2 2025 ● Total Assets: $133.6 million as of quarter-end Q3 2025, up 3% from Q2 2025 and up 20% from Q3 2024 ● Net Income: -$0.4 million or $0.00 per share versus -$3.3 million or -$0.02 per share in Q2 2025 DMG’s CEO, Sheldon Bennett, commented: “In Q3, we significantly advanced our key initiatives, bringing into full service our 6 megawatts of hydro-enabled bitcoin mining. Additionally, we advanced our artificial intelligence (AI) infrastructure strategy with the purchase of 2 megawatts of prefabricated data center infrastructure. Finally, we oriented our Systemic Trust digital asset custody business for long-term growth with a focus on capitalizing on the proliferation of digital asset funds and treasuries. With a foundation of a strong balance sheet with $134 million in assets and increasing momentum among our key initiatives, we believe we can continue to generate cash while capitalizing on our initiatives for new revenue growth.” Third Quarter 2025 Financial Results Review Revenue decreased by $1,029,864 to $11,614,710 for the three months ended June 30, 2025 compared to the three months ended March 31, 2025. Bitcoin earned from mining for the three months ended June 30, 2025 of 84.27 resulted in a decrease of 6.52 as compared to 90.79 bitcoin earned in the prior period. Net loss decreased from the prior quarter by $2,965,197, mainly due to a reduction in operating and maintenance costs, realized gains on the sale of digital currency and foreign exchange gains. Operating and maintenance expenses for the three months ended June 30, 2025 was $6,519,599, up from $4,675,279 in the prior year three-month period. This increase is primarily due to a $1,385,656 rise in utilities expenses, driven by expanded digital currency mining operations with additional operating miners and fluctuating energy prices. Furthermore, hosting fees paid to third parties totaling $457,745 also contributed to this increase. Research costs for the three months ended June 30, 2025 decreased by $116,610 compared to the prior year three-month period. Research in fiscal 2025 continues to focus on software and relates to work on Systemic Trust, Helm, Reactor and Blockseer Explorer. General and administrative costs for the three
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months ended June 30, 2025 was $1,930,372 in comparison to $1,476,973 in the prior year three-month period. General and administrative costs consist mostly of wages, professional fees, consulting fees, and financing costs. The overall increase of $453,399 is attributable mainly to a $203,937 rise in professional fees and a $225,097 rise in wages. Depreciation for the three months ended June 30, 2025 was $4,483,564 compared to $5,037,240 in the prior year three-month period. Total assets as of June 30, 2025 was $133,554,883, an increase of $29,685,902 from the end of the prior year. The increase is mostly attributable to the Company’s purchase of $9,116,500 short-term investments and a net increase in digital currency of $16,354,981 due to the revaluation of digital currency balances resulting from an increase in the price of bitcoin, which was $148,296 as of June 30, 2025 as compared to $88,673 at the end of the prior year. Third Quarter 2025 Results Conference Call Details The Company will host a conference call to review its results and provide a corporate update on August 25, 2025 at 4:30 PM ET. Participants should register for the call via the link. In addition to a live Q&A session via chat, management will also address pre-submitted questions. Those wishing to submit a question may do so via email at investors@dmgblockchain.com, using the subject line ‘Conference Call Question Submission,’ through 2:00 PM ET on August 25, 2025. About DMG Blockchain Solutions Inc. DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG’s carbon-neutral Bitcoin ecosystem, which enables financial institutions to move bitcoin in a sustainable and regulatory-compliant manner. DMG’s Blockseer Explorer is a feature-rich, freely available Bitcoin blockchain explorer, available at blockseer.com. For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com Follow @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 & Director Tel: +1 (778) 300-5406 Email: investors@dmgblockchain.com Web: www.dmgblockchain.com For Investor Relations: investors@dmgblockchain.com For Media Inquiries: Chantelle Borrelli Head of Communications chantelle@dmgblockchain.com
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DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars) Notes As at June 30, 2025 (unaudited) As at September 30, 2024 (audited) ASSETS $ $ Current Cash and cash equivalents 2,021,891 1,679,060 Amounts receivable 6 3,961,284 4,910,251 Digital currency 5 50,682,684 34,327,703 Prepaid expense and other current assets 502,492 337,042 Marketable securities 8 394,718 316,803 Short-term investment 9 9,116,500 - Assets held for sale 30,408 - Total current assets 66,709,977 41,570,859 Long-term deposits 10 8,374,808 2,047,682 Property and equipment 11 51,236,941 53,798,978 Intangible asset 276,040 - Long-term investments 12 45,000 45,000 Amount recoverable 7 6,912,117 6,406,462 Total assets 133,554,883 103,868,981 LIABILITIES AND SHAREHOLDERS' EQUITY Current Trade and other payables 13 6,310,864 5,183,107 Deferred revenue 17 43,795 - Current portion of lease liability 102,596 43,483 Current portion of loans payable 14 12,703,155 13,928,462 Total current liabilities 19,160,410 19,155,052 Long-term lease liability 107,367 51,842 Total liabilities 19,267,777 19,206,894 Shareholders' Equity Share capital 15(a) 120,326,738 113,086,455 Reserves 15(b)(c) 56,508,983 45,853,100 Accumulated other comprehensive income 29,007,973 10,448,614 Accumulated deficit (91,556,588) (84,726,082) Total shareholders’ equity 114,287,106 84,662,087 Total liabilities and shareholders’ equity 133,554,883 103,868,981
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DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in Canadian Dollars, except for number of shares) (Unaudited) For the Three Months Ended For the Nine Months Ended Notes June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 $ $ $ $ Revenue 17 11,614,710 8,294,866 35,892,109 28,001,289 Expenses Operating and maintenance costs 18(a) 6,519,599 4,675,279 20,824,539 15,093,781 General and administrative 18(b) 1,930,372 1,476,973 5,703,453 4,209,432 Stock-based compensation 735,540 480,945 2,151,182 1,247,447 Research and development 487,309 603,919 1,649,721 1,528,314 Provision (recovery) for doubtful accounts (231) 2,628 (6,950) 6,434 Depreciation 11 4,483,564 5,037,240 13,147,142 13,185,010 Total expenses 14,156,153 12,276,984 43,469,087 35,270,418 Loss before other items (2,541,443) (3,982,118) (7,576,978) (7,269,129) Other income (expense) Interest and other income 7 174,705 174,417 505,655 510,242 Provision of sales tax receivable (171,905) (10,584) (1,148,329) (646,174) Gain (loss) on disposition of assets (375,907) - (377,525) 4,809 Foreign exchange gain (loss) 849,711 (103,008) (52,264) (225,934) Unrealized gain (loss) on revaluation of digital currency 5 - (4,200) 28,083 9,178,116 Realized gain (loss) on sale of digital currency 1,520,910 177,005 1,675,118 2,172,364 Gain (loss) on change in fair value of marketable securities 162,775 (89,449) 77,915 21,594 Gain (loss) on fair value of investments - - 37,819 (609,120) Net income (loss) (381,154) (3,837,937) (6,830,506) 3,136,768 Other comprehensive income Items that may be reclassified subsequently to income or loss: Unrealized revaluation gain (loss) on digital currency 5 10,109,144 (4,819,676) 18,597,831 10,652,539 Cumulative translation adjustment (6,251) 6,686 (38,472) 5,490 Comprehensive income (loss) 9,721,739 (8,650,927) 11,728,853 13,794,797 Basic and diluted income (loss) per share 15(d) 0.00 (0.02) (0.03) 0.02 Weighted average number of shares outstanding 15(d) - basic 203,242,018 168,975,567 197,363,999 168,937,426 - diluted 203,242,018 168,975,567 197,363,999 172,496,489
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DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited) For the Nine Months Ended June 30, 2025 June 30, 2024 $ $ OPERATING ACTIVITIES Net income (loss) for the period (6,830,506) 3,136,768 Non-cash items: Accretion 11,764 28,876 Depreciation 13,147,142 13,185,010 Share-based payments 2,151,182 1,247,447 Unrealized foreign exchange loss 648 144,288 Loss (gain) on disposition of assets 377,525 (4,809) Gain on change in fair value of marketable securities (77,915) (21,594) Loss (gain) on fair value of investment (37,819) 609,120 Provision for sales tax receivable 1,148,329 646,174 Bad debt (recovery) expense (6,950) 6,434 Digital currency related revenue (34,848,860) (26,137,726) Unrealized gain on digital currency (28,083) (9,178,117) Digital currency sold 38,794,110 26,598,464 Realized gain on sale of digital currency (1,675,118) (2,172,364) Non-cash interest income (505,655) (504,311) Accrued interest 1,062,627 229,208 Changes in non-cash operating working capital: Prepaid expenses and other current assets 617,227 (184,748) Amounts receivable (102,595) (1,345,463) Deferred revenue 43,795 (28,254) Trade and other payables 1,053,742 611,762 Net cash provided by operating activities 14,294,590 6,866,165 INVESTING ACTIVITIES Purchase of property and equipment (10,824,859) (1,710,629) Purchase of intangible assets (276,040) - Deposits on mining equipment (8,908,076) (18,088,936) Purchase of short-term investment (9,116,500) (609,120) Refund of security deposits 1,792,907 - Net cash used by investing activities (27,332,568) (20,408,685) FINANCING ACTIVITIES Proceeds from issuance of units 17,254,945 - Share issuance costs (1,570,875) - Proceeds from option exercises 60,913 555,173 Principal lease payments (65,320) (85,793) Proceeds from secured loan 5,829,013 12,161,909 Repayment of loans payable (8,128,048) (1,668) Net cash provided by financing activities 13,380,628 12,629,621 Impact of currency translation on cash 181 108 Change in cash 342,831 (912,791) Cash, beginning 1,679,060 1,789,913 Cash, end 2,021,891 877,122 Supplemental cash flow information (Note 22)
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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 the filing of the third quarter 2025 results and hosting a conference call, the Company’s strategy for growth, the planned monetization of certain product and service offerings, developing and executing on the Company’s products, services and business plans, 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 or Bitcoin hashrate 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 hashrate and 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 bitcoin; security threats, including a loss/theft of DMG's bitcoin; 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 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 viruses and diseases on the Company's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin 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.