DMG Blockchain Solutions, Inc. Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: Q3 revenue declined to $1.7M, down from $2.5M in Q2. However, YTD revenue still increased $815K year-over-year, primarily due to growth in software licensing and hosting.
  • Net Loss: Reported net loss of $8.4M in Q3 (up from prior quarters). However, $4.6M of this was due to unrealized losses from Bitcoin price depreciation, and $1.7M from non-cash stock-based compensation.
  • Cash Reserves: Strong liquidity with $47.4M in cash and $108.5M in total assets, up significantly from $21.5M nine months earlier.
  • Digital Assets: Ended Q3 with ~258 BTC worth CAD$11M. Value based on BTC priced at ~$35,937 USD. As of the call, BTC risen to ~$47,000 USD.
  • Shift from Hosting to Self-Mining: Strategic move led to temporary revenue decline, as DMG reallocated hosting capacity to its own mining operations. Hosting dropped from 80% to 20% of operations.
  • Miner Deployments:
    • 800 new miners recently installed, with 2,100 more en route to Christina Lake.
    • Expected to reach ~305 PH/s from these recent shipments.
    • Total of 7,850 S19j Pro miners ordered from Bitmain, with 450 units arriving monthly for the next 11 months.
    • Estimating 800 PH/s total capacity upon full deployment from current orders.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the DMG Blockchain Solutions Q3 Update Conference Call. At this time, all participants are in a listen-only mode. Participants on this call are advised that the audio of this conference is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call. I would now like to turn the call over to Jules Abraham with CORE IR, the company's Investor Relations firm. Please go ahead. Jules Abraham: Thank you, Chad and good afternoon everyone. Thank you for joining us for the DMG Blockchain Solutions shareholder update conference call. Joining us today from DMG Blockchain Solutions is Sheldon Bennett, the company's Chief Executive Officer. During this call, management will be making forward-looking statements including statements that address the DMG Blockchain Solutions expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in DMG Blockchain Solutions most recently filed periodic reports and the company's recent press releases, particularly the cautionary statements within. The contents of this call contain time sensitive information that is accurate only as

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional