CA - DMG Blockchain Solutions soars as hashrate improves 18% in June quarter

• DMG Blockchain Solutions ( OTCQB:DMGGF ) shares are up 5% on Thursday after the bitcoin miner reported 18% increase in realized hashrate to an average of 0.55 EH/s during the third quarter, still almost the half of company's year-end target of 1 EH/s.
• Bitcoin Mined: The company mined total of 212 bitcoin, an 8% increase versus the prior quarter from 195 bitcoin, reflecting the hashrate growth partially offset by a 9% reduction of the network BTCs per hash.
• Year-to-date, DMG has mined 592 bitcoin.
• Revenue, however, declined 12% sequentially to 10.5M for the quarter ended June 30, 2022, reflecting lower self-mining revenue to $9M. Also, the average price of a mined bitcoin declined 19% versus the prior quarter to C$42,288.
• Bitcoin Sold: In the June quarter, DMG sold 171 bitcoin at an average bitcoin price of C$38,934 generating $6.7M of cash. That reflects sale of 81% of the bitcoin mined, down from the prior quarter of selling 133% of the bitcoin amount generated.
• Gross margin percentage was 66%, down from 73% the prior March quarter.
• Net loss for the quarter amounted to $12.2M.
• The company said it expects depreciation to continue to rise as we deploy additional miners through the end of the calendar year.
• Cash plus bitcoin holdings value decreased to $11.9M from $28.1M in the prior quarter, as the price used to value the company's bitcoin on the balance sheet decreased 56% versus the prior quarter, report.
• Total asset base accordingly decreased to $106.6M from $124.8M.
• August Update: Last month, DMG mined 69 bitcoin and added 87 PH/s of mining capacity. DMG’s bitcoin balance as of Aug. 31, 2022 was 362 bitcoin.
• September quarter mining outlook: DMG said in this current quarter, the heat issue has worsened with summer temperatures, and "as such, we expect only a very modest change in realized hashrate in the quarter to end September 30, 2022."
• 1 EH/s target at 2022-end: The bitcoin miner expects the situation to markedly improve in the December quarter as temperatures rapidly cool while approaching to its calendar year end target of 1 EH/s of installed mining capacity.
• DMG told that CEO Sheldon Bennett and COO Steven Eliscu, present a corporate overview at the 24 ^th Annual H.C. Wainwright Global Investment Conference being held on Sept. 12-14, 2022.

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