DMG Blockchain Solutions (TSX-V:DMGI)(OTCQB:DMGGF) released preliminary revenue guidance for its fourth-quarter ending September 30, 2021. According to the company’s press release, DMG expects cumulative revenue for Q4 2021 to be in the range of $3.5 – 4 million. This is in stark contrast to the $1.7 million reported in Q3 2021, reflecting a 50-55% increase quarter over quarter. This increase was driven by the acquisition of new crypto miners in late Q4.
DMG is a vertically integrated blockchain and cryptocurrency company that leverages end-to-end digital solutions to monetize the blockchain ecosystem. The company prides itself on being environmentally friendly, with operations entirely powered by renewable energy. Besides generating revenues from block rewards and transaction fees by primarily mining bitcoin, DMG also provides hosting services for industrial mining clients.
With the addition of the new miners, DMG expects its mining operations to yield 47-50 BTC for Q4, which should be roughly 6x Q3 production of 7.16 BTC. In addition to this, the company expects the Q4 hash rate to surge over 200% to roughly 280 Ph/s compared to the preceding quarter. Previously, the company had revealed that it ordered 7,850 S19j Pros and 1,800 S19 XPs Bitcoin miners from Bitmain for a cumulative hash rate of 1,037 PH/s but has only received 50% of the hash rate orders.
“We are pleased with the change in our strategy, moving from a primarily hosting focused company to greater focus on self-crypto mining. Our first large shipment of new miners arrived late in Q4, and we were able to capture some new revenues from new equipment installed. Our team has made significant progress in both Core mining hashrate deployment as well as Core+ software platforms,” comments Sheldon Bennett, DMG’s Chief Executive Officer.
DMG Blockchain Solutions currently trades at C$0.66 per share and has a market capitalization of C$108.7 million. The company’s share price has been range-bound over the past week despite bitcoin’s increasing momentum over the same period driving the price up to $50,000. Going forward it will be interesting to see how the market will react to news of DMG’s expected revenue bump for the fourth quarter.
