DMG Blockchain Signs 7 – Megawatt Bitcoin Mining Contract

DMG Blockchain Solutions (TSXV:DMGI) has announced it has signed a Mining as a Service (MaaS) contract with a blockchain company to host approximately 7 megawatts of bitcoin mining capacity.

As quoted in the press release:

Pursuant to the terms of the agreement, the new customer will pay DMG’s hosting fee for approximately 4,200 newer-model bitcoin miners. The agreement term is three months, with automatic renewals every three months.

Supporting DMG’s ability to fill its mining capacity is the recent large drop in Bitcoin network computing power (hash rate), which enables large-scale industrial miners, like DMG customers, to still be profitable on an operational basis, even at current bitcoin pricing.

DMG CEO, Dan Reitzik stated, “We are pleased that, just as we energized our new substation, we added a significant new client and we are now filling our capacity in accordance with DMG’s MaaS growth strategy. We have been very careful to preserve capital in our first year as a public company by focusing on our MaaS hosting model. Given our solid position, we are thus prepared to fill the remainder of our capacity with new generation mining equipment in the new year, which should result in additional cash flow generation for both DMG and our clients.

Click here to read the full press release.