Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS ACCELERATES GROWTH WITH NEW 5-MEGAWATT HYDRO MINER PURCHASE

DMG Blockchain Solutions Inc. has expanded its mining operations with the purchase of Bitmain hydro miners for a total of five megawatts of hydro mining containers. These advanced hydro miners, which boast an efficiency of 15 joules per terahash at a cost of $15 per terahash per second, represent an investment of approximately $5-million (U.S.).

This latest acquisition builds on the company's earlier purchase of one megawatt of hydro miners, further enhancing DMG's operational efficiency and hash rate. The first tranche of one megawatt of hydro miners and six one-megawatt containers is expected to be installed by the end of December, 2024, or shortly thereafter. Following this, the newly ordered five megawatts of hydro miners are anticipated to be installed by the end of February, 2025. Combined, these installations are projected to add 0.4 exahash per second to DMG's hash rate, bringing the company's total hash rate to 2.1 EH/s with a fleet efficiency of 21 J/TH early in calendar 2025. The additional hash rate is subject to the receipt, installation and operation of these additional miners.

In addition to expanding its mining operations, DMG is leveraging its recent fundraising success, which added $16-million to the company's cash reserves. Approximately $7-million of this capital has been allocated to the purchase of critical mining equipment. The company is also considering further capital deployment to expand its mining capacity, make additional investments into Systemic Trust Corp., DMG's subsidiary focused on custody of digital assets, and initiate investments in artificial intelligence infrastructure. These artificial-intelligence-related investments align with the company's signed memorandum of understanding, which is under negotiation to a full joint venture with the Malahat Nation, highlighting DMG's commitment to innovation and strategic growth.

Sheldon Bennett, chief executive officer of DMG, commented: "With our recent fundraising that added $16-million to DMG's cash balance, we have immediately allocated approximately $7-million for the purchase of capital equipment to grow our business. We continue to seek the most effective ways to deploy this new capital to maximize return for shareholders, including meeting the financial commitments required to move Systemic Trust from letters patent to become fully qualified as a Canadian trust company. Additionally, as we are encouraged by the recent bitcoin price rally, having a strong cash balance gives us the flexibility to accumulate bitcoin while also making strategic investments to grow our hash rate, support the growth of our Core+ strategy and make meaningful progress towards deploying next-generation AI compute infrastructure."

DMG management at industry conferences

DMG management will attend the 13th annual Roth Technology Conference on Nov. 19 and Nov. 20, 2024, in New York, and the North American Blockchain Summit on Nov. 2 and Nov. 21, 2024, in Dallas, Tex.

About Roth Technology Conference

The 13th annual Roth Technology Conference, taking place in New York on Nov. 19 and Nov. 20, 2024, is a premier event, bringing together innovative technology companies and investors. This invitation-only conference focuses on showcasing growth-oriented technology enterprises through one-on-one meetings, group presentations and networking opportunities.

About North American Blockchain Summit

The North American Blockchain Summit, hosted in Dallas, Tex., on Nov. 20 and Nov. 21, 2024, is a leading conference spotlighting the transformative potential of blockchain technology. Organized by the Texas Blockchain Council, this summit gathers policy-makers, industry leaders and innovators to explore advancements in blockchain adoption across diverse sectors.

About DMG Blockchain Solutions Inc.

DMG is a sustainable, vertically integrated blockchain and data centre technology company that develops, manages and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company's operations are driven by two strategic pillars: Core and Core+, both unified by DMG's commitment to vertical integration and environmentally responsible practices. DMG's subsidiary Systemic Trust is focused on custody of digital assets.

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