VANCOUVER, British Columbia, Aug. 27, 2026 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) ("DMG"), a vertically integrated data center and digital assets technology company, today announces its fiscal third quarter 2026 unaudited financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company's June 30, 2026 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 2026 Financial Results Highlights
-- Revenue: $6.4 million, down 13% from $7.3 million in Q2 2026 and down 45%
from $11.6 million in Q3 2025
-- Bitcoin Received from Mining: 61.9 bitcoin, down 10% from 68.8 bitcoin in
Q2 2026 and down 27% from 84.3 bitcoin in Q3 2025
-- Hashrate: 1.47 EH/s, down 14% from Q2 2026 with fleet efficiency of 21.9
J/TH, a 3% decline
-- Cash, Short-term Investments and Digital Assets: $41.6 million at the end
of Q3 2026, down 12% from $47.4 million at the end of Q2 2026
-- Total Assets: $102.3 million at the end of Q3 2026, down 7% from $109.9
million at the end of Q2 2026
-- Net Loss : -$3.9 million or -$0.02 per share
DMG's CEO, Sheldon Bennett, commented, "In Q3 2026, we focused on realizing our vision to transition our flagship Christina Lake facility to operate as an AI data center. Regarding our previously announced letter of intent to offer 50 megawatts of AI data center colocation services at our Christina Lake facility to a single tenant, we are actively working towards a definitive agreement. In parallel, we are moving forward with key project execution steps, including selecting our contractors and engineering design partners, strengthening our vendor relationships, applying for the necessary permits, exploring multiple financing options and addressing concerns from the local community. We remain committed to project success and enabling our off-take client to begin operating its servers in a timely manner."
Third Quarter 2026 Financial Results Review
Revenue for Q3 2026 was $6.4 million, compared to $11.6 million in Q3 2025. The decrease in revenue is attributable to a decrease in digital currency mining revenue of $5.2 million, which is primarily the result of a decrease in both the amount of digital currency mined and the average price of digital currency.
Operating and maintenance expenses for Q3 2026 were $4.4 million, compared to $6.5 million in Q3 2025. This decrease is primarily due to a $2.0 million decrease in utilities expenses driven by favourable non-firm energy rates realized during the recent period and the retirement of inefficient digital currency miners.
General and administrative costs for Q3 2026 were $1.5 million, compared to $1.9 million in Q3 2025. General and administrative costs consist mostly of wages, professional fees, consulting fees and financing costs.
Depreciation for Q3 2026 was $2.6 million, compared to $4.5 million in Q3 2025. Additions to property and equipment during the nine months ended June 30, 2026 totaled $1.6 million, compared to $19.5 million and $21.9 million in the fiscal years ended September 30, 2025 and 2024 respectively. The relatively low level of recent additions has limited the offsetting impact on depreciation expense, contributing to the lower depreciation expense for the current period.
Net loss for Q3 2026 was $3.9 million compared to a net loss of $0.4 million for Q3 2025.
Total assets as of June 30, 2026 were $102.3 million (September 30, 2025 - $132.0 million), a decrease of $29.7 million. The decrease is mostly attributable to a $22.9 million decrease in the fair value of digital currency balances between the periods, as well as a reduction in property and equipment of $8.7 million, which resulted from normal course depreciation and the disposition of decommissioned miners, only partially offset by property and equipment additions during the period.
Third Quarter 2026 Results Conference Call Details
The Company will host a conference call to review its results and provide a corporate update on August 27, 2026 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 27, 2026.
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated data center and digital asset technology company that develops, manages, and operates comprehensive platform solutions to monetize the artificial intelligence (AI) and blockchain ecosystems. The Company's operations are driven by two strategic pillars: Data Center Infrastructure (Core) and Digital Asset Software and Services (Core+). DMG is expanding its platform to include AI and sovereign compute solutions, supporting government, enterprise and research organizations across Canada.
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:
communications@dmgblockchain.com
DMG Blockchain Solutions Inc.
Condensed Consolidated Interim
Statements of Financial
Position (Expressed in Canadian
Dollars)
-------------------------------------------
As at As at
June 30, September 30,
2026 2025
Notes (unaudited) (audited)
------------------------------- ---------
ASSETS $ $
Current
Cash and cash equivalents 2,788,470 1,681,448
Amounts receivable 6 4,622,326 4,045,161
Digital currency 5 31,585,358 54,440,600
Prepaid expense and other
current assets 247,132 330,077
Marketable securities 8 238,539 479,426
Short-term investments 9 7,216,500 9,116,500
Assets held for sale 10 30,408 30,408
-------------------------------
Total current assets 46,728,733 70,123,620
Long-term deposits 11 203,641 138,415
Property and equipment 13 44,768,849 53,450,285
Intangible assets 12 2,821,019 1,181,414
Long-term investments 14 245,000 45,000
Amount recoverable 7 7,522,287 7,091,351
-------------------------------
Total assets 102,289,529 132,030,085
-------------------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current
Trade and other payables 15 5,123,881 6,370,626
Deferred revenue 4,891 -
Current portion of lease
liability 16 76,901 106,619
Current portion of loans
payable 17 19,713,551 10,885,374
-------------------------------
Total current liabilities 24,919,224 17,362,619
Long-term lease liability 16 25,724 78,296
-------------------------------
Total liabilities 24,944,948 17,440,915
Shareholders' Equity
Share capital 18(a) 121,957,185 121,210,082
Reserves 18(b-d) 56,921,844 56,316,695
Accumulated other
comprehensive income 3,102,067 32,056,444
Accumulated deficit (104,636,515) (94,994,051)
-------------------------------
Total shareholders' equity 77,344,581 114,589,170
-------------------------------
Total liabilities and
shareholders' equity 102,289,529 132,030,085
-------------------------------
DMG Blockchain Solutions Inc.
Condensed Consolidated Interim Statements of Loss
and Comprehensive Loss
(Expressed in Canadian Dollars, except for number
of shares)
(Unaudited)
For the 3 months ended For the 9 months ended
June 30, June 30,
------------------------- -------------------------
Notes 2026 2025 2026 2025
--------------------
$ $ $ $
Revenue 20 6,364,212 11,614,710 24,849,511 35,892,109
Expenses
Operating and
maintenance
costs 21(a) 4,408,556 6,519,599 16,300,195 20,824,539
General and
administrative 21(b) 1,465,351 1,930,372 4,730,942 5,703,453
Share-based
compensation 557,663 735,540 1,661,662 2,151,182
Research and
development 323,108 487,309 330,778 1,649,721
Bad debt
recovery 6 792 (231) (968) (6,950)
Depreciation 13 2,615,545 4,483,564 8,946,266 13,147,142
Total expenses 9,371,015 14,156,153 31,968,875 43,469,087
Operating loss
before other
items (3,006,803) (2,541,443) (7,119,364) (7,576,978)
Other income
(expense)
Interest and
other income 6, 7 62,539 174,705 430,935 505,655
Provision of
sales tax
receivable (303,043) (171,905) (1,014,451) (1,148,329)
Foreign
exchange gain
(loss) (413,922) 849,711 (470,485) (52,264)
Loss on
disposition of
assets (266,857) (375,907) (1,327,449) (377,525)
Realized gain
(loss) on sale
of digital
currency (108,256) 1,520,910 (168,249) 1,741,020
Gain on change
in fair value
of marketable
securities 101,226 162,775 26,599 77,915
Net loss before
income taxes (3,935,116) (381,154) (9,642,464) (6,830,506)
Income tax
expense
(recovery) - - - -
Net loss (3,935,116) (381,154) (9,642,464) (6,830,506)
Other
comprehensive
income Items
that may be
reclassified
subsequently to
income or loss:
Revaluation
gain (loss) on
digital
currency (4,395,549 ) 10,109,144 (28,955,335 ) 18,597,831
Cumulative
translation
adjustment 1,445 (6,251) 958 (38,472)
--------------------
Comprehensive
income (8,329,220) 9,721,739 (38,596,841) 11,728,853
--------------------
Basic and
diluted loss
per share 18(f) ($0.02) ($0.00) ($0.05) ($0.03)
Weighted
average number
of shares
outstanding
- basic and
diluted 206,901,497 203,242,018 206,218,073 197,363,999
-------------------- -----
The accompanying notes are integral to these consolidated financial statements
DMG Blockchain Solutions Inc.
Condensed Consolidated Interim Statements of Cash
Flows
(Expressed in Canadian Dollars)
(Unaudited)
For the 9 months ended June 30,
2026 2025
---------------------------------------
OPERATING ACTIVITIES $ $
Net loss for the period (9,642,464) (6,830,506)
Non-cash items:
Accretion 3,591 11,764
Depreciation 8,946,266 13,147,142
Share-based payments 1,661,662 2,151,182
Unrealized gain on revaluation of
digital currency - (28,083)
Unrealized foreign exchange
(gain) loss 347,392 648
Loss on disposition of assets 1,327,449 377,525
Gain on fair value change of
marketable securities (26,599) (77,915)
Gain on fair value of investment - (37,819)
Provision for sales tax
receivable 1,014,451 1,148,329
Bad debt recovery (968) (6,950)
Digital currency related revenue (22,880,907) (34,848,860)
Digital currency sold 16,613,625 38,794,110
Realized loss (gain) on sale of
digital currency 168,249 (1,675,118)
Lease adjustment 8,275 -
Non-cash interest income (553,256) (505,655)
Accrued interest expense 1,071,143 1,062,627
Changes in non-cash operating
working capital:
Prepaid expenses and other
current assets 82,945 617,227
Amounts receivable (1,344,720) (102,595)
Deferred revenue 4,891 43,795
Trade and other payables (1,259,093) 1,053,742
---------------------------------------
Net cash (used in) provided by
operating activities (4,458,068) 14,294,590
---------------------------------------
INVESTING ACTIVITIES Purchase of
property and equipment (1,497,985 ) (10,824,859 )
Deposits on mining equipment (167,795) (8,908,076)
Disposition of short-term
investments 2,000,000 -
Purchase of short-term investments (100,000) (9,116,500)
Purchase of long-term investments (200,000) -
Disposition of marketable
securities 148,566 -
Refund of security deposit - 1,792,907
Purchase of intangible assets (1,639,605) (276,040)
---------------------------------------
Net cash used in investing
activities (1,456,819) (27,332,568)
---------------------------------------
FINANCING ACTIVITIES
Proceeds from options exercises 65,395 60,913
Principal lease payments (85,881) (65,320)
Tax remittance on net settlement
of equity awards (374,805) -
Proceeds from secured loan 7,407,369 5,829,013
Repayment of loan payable - (8,128,048)
Proceeds from issuance of units - 17,254,945
Share issuance costs - (1,570,875)
---------------------------------------
Net cash provided by financing
activities 7,012,078 13,380,628
---------------------------------------
Impact on currency translation on
cash and cash equivalents 9,831 181
Cash and cash equivalents, change 1,107,022 342,831
Cash and cash equivalents,
beginning 1,681,448 1,679,060
---------------------------------------
Cash and cash equivalents, ending 2,788,470 2,021,891
---------------------------------------
Supplemental cash flow information
(Note 25)
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 hosting a conference call, potential AI opportunities, the Company's plan to convert its Christina Lake data center into an AI data center, entering into a definitive agreement with a potential tenant to offer 50 megawatts of AI data center colocation services at the Christina Lake facility, 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 rate 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 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 forward-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; the demand and pricing of AI data centers and usage; 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 and services, 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 and/or infrastructure 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 AI and blockchain technology generally, failure to develop new and innovative products, litigation, lack of demand for the Company's products and services, 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.