Dmg Blockchain Solutions (DMGI) investor relations material

Executive summary

• Focused on converting the Christina Lake facility into a 50+ MW AI data center, targeting multiyear colocation contracts and expanding Digital Asset Financial Services.

• Revenue for Q1 2026 was $11.2 million, down 2% sequentially and 4% year-over-year, mainly due to lower Bitcoin mining revenues, partially offset by a $1.5 million energy efficiency incentive.

• Net loss for Q1 2026 was $2.2 million, an improvement from a $3.1 million loss in Q1 2025, aided by the energy incentive and foreign exchange gains.

• Actively pursuing government and commercial partnerships, including a submission to Canada's ISED for sovereign AI data centers and collaboration with Malahat Nation.

• Maintaining digital asset financial services through Systemic Trust, with new client onboarding and platform upgrades.

Financial highlights

• Cash, short-term investments, and digital assets totaled $58.6 million at Q1 2026 end, down 10% from year-end 2025.

• Q4 revenue decreased 2% sequentially to $11.2 million, with self-mining revenue down 16% due to lower Bitcoin price and network generation, partly offset by a $1.5 million energy incentive.

• Operating and maintenance expenses were $6.7 million, stable year-over-year; energy cost per mined Bitcoin flat at $64K.

• Depreciation expense was $3.5 million, down from $4.3 million in Q1 2025 due to the declining balance method.

• Total assets decreased to $122.0 million from $132.0 million at year-end 2025, mainly due to a $6.0 million drop in digital asset valuation and $3.1 million depreciation.

Outlook and guidance

• No specific guidance on timing for off-take deals or Oregon site acquisition due to ongoing negotiations and due diligence.

• Management is focused on AI data center conversion and building out Digital Asset Financial Services, targeting AI off-takers and government partnerships for future growth.

• Expecting to maintain hash rate and improve fleet efficiency in the March quarter.

• Anticipates need for further debt or equity financing to reach 50 MW AI infrastructure goal.

• Focused on building Systemic Trust client base and expanding digital asset financial services revenue in the next 6–12 months.