DMG Blockchain Solutions Reports Third Quarter 2026 Financial Results

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Postmedia has not reviewed the content. by GlobeNewswire DMG Blockchain Solutions Reports Third Quarter 2026 Financial ResultsAuthor of the article: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.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountQ3 2026 Financial Results HighlightsGet the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRevenue: $6.4 million, down 13% from $7.3 million in Q2 2026 and down 45% from $11.6 million in Q3 2025Bitcoin Received from Mining: 61.9 bitcoin, down 10% from 68.8 bitcoin in Q2 2026 and down 27% from 84.3 bitcoin in Q3 2025Hashrate: 1.47 EH/s, down 14% from Q2 2026 with fleet efficiency of 21.9 J/TH, a 3% declineCash, 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 2026Total Assets: $102.3 million at the end of Q3 2026, down 7% from $109.9 million at the end of Q2 2026Net Loss : -$3.9 million or -$0.02 per shareDMG’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 ReviewRevenue 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.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.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 DetailsThe 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.comFollow @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 & DirectorTel: +1 (778) 300-5406Email: investors@dmgblockchain.comWeb: www.dmgblockchain.comDMG Blockchain Solutions Inc.Condensed Consolidated Interim Statements of FinancialPosition(Expressed in Canadian Dollars) NotesAs atJune 30,2026(unaudited) As atSeptember 30,2025(audited) ASSETS $ $ CurrentCash and cash equivalents 2,788,470 1,681,448 Amounts receivable64,622,326 4,045,161 Digital currency531,585,358 54,440,600 Prepaid expense and other current assets 247,132 330,077 Marketable securities8238,539 479,426 Short-term investments97,216,500 9,116,500 Assets held for sale1030,408 30,408 Total current assets 46,728,733 70,123,620 Long-term deposits11203,641 138,415 Property and equipment1344,768,849 53,450,285 Intangible assets122,821,019 1,181,414 Long-term investments14245,000 45,000 Amount recoverable77,522,287 7,091,351 Total assets 102,289,529 132,030,085 LIABILITIES AND SHAREHOLDERS’EQUITY CurrentTrade and other payables155,123,881 6,370,626 Deferred revenue 4,891 – Current portion of lease liability1676,901 106,619 Current portion of loans payable1719,713,551 10,885,374 Total current liabilities 24,919,224 17,362,619 Long-term lease liability1625,724 78,296 Total liabilities 24,944,948 17,440,915 Shareholders’ EquityShare capital18(a)121,957,185 121,210,082 Reserves18(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 June 30, For the 9 months ended June 30, Notes2026 2025 2026 2025 Revenue20$6,364,212 $11,614,710 $24,849,511 $35,892,109 ExpensesOperating and maintenance costs21(a)4,408,556 6,519,599 16,300,195 20,824,539 General and administrative21(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 recovery6792 (231)(968) (6,950)Depreciation132,615,545 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 income6, 762,539 174,705 430,935 505,655 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 share18(f)($0.02) ($0.00)($0.05) ($0.03)Weighted average number of shares outstanding – basic and diluted 206,901,497 203,242,018 206,218,073 197,363,999 The accompanying notes are integral to these consolidated financial statementsDMG Blockchain Solutions Inc.Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars)(Unaudited) For the 9 months ended June 30, 2026 2025 OPERATING ACTIVITIES$ $ Net loss for the period(9,642,464)(6,830,506)Non-cash items: Accretion3,591 11,764 Depreciation8,946,266 13,147,142 Share-based payments1,661,662 2,151,182 Unrealized gain on revaluation of digital currency– (28,083)Unrealized foreign exchange (gain) loss347,392 648 Loss on disposition of assets1,327,449 377,525 Gain on fair value change of marketable securities(26,599)(77,915)Gain on fair value of investment– (37,819)Provision for sales tax receivable1,014,451 1,148,329 Bad debt recovery(968)(6,950)Digital currency related revenue(22,880,907)(34,848,860)Digital currency sold16,613,625 38,794,110 Realized loss (gain) on sale of digital currency168,249 (1,675,118)Lease adjustment8,275 – Non-cash interest income(553,256)(505,655)Accrued interest expense1,071,143 1,062,627 Changes in non-cash operating working capital: Prepaid expenses and other current assets82,945 617,227 Amounts receivable(1,344,720)(102,595)Deferred revenue4,891 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 ACTIVITIESPurchase of property and equipment(1,497,985)(10,824,859)Deposits on mining equipment(167,795)(8,908,076)Disposition of short-term investments2,000,000 – Purchase of short-term investments(100,000)(9,116,500)Purchase of long-term investments(200,000)– Disposition of marketable securities148,566 – 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 ACTIVITIESProceeds from options exercises65,395 60,913 Principal lease payments(85,881)(65,320)Tax remittance on net settlement of equity awards(374,805)– Proceeds from secured loan7,407,369 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 activities7,012,078 13,380,628 Impact on currency translation on cash and cash equivalents9,831 181 Cash and cash equivalents, change1,107,022 342,831 Cash and cash equivalents, beginning1,681,448 1,679,060 Cash and cash equivalents, ending2,788,470 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 InformationThis 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.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.