Dmg Blockchain Solutions (DMGI) Q2 2025 earnings summary

Executive summary

• Revenue grew 9% sequentially to $12.6M, up 26% year-over-year, with a net loss of $3.3M in Q2 2025.

• Core+ software and services strategy advanced, with Systemic Trust onboarding a new interim CEO and focusing on client acquisition and revenue ramp-up by year-end.

• AI infrastructure expansion underway, including the purchase of a 2MW prefabricated data center and focus on public sector and enterprise colocation agreements.

• Bitcoin mining operations reached 2.1 exahash in May, with a goal of 3 exahash by year-end using non-dilutive financing.

• Cash, short-term investments, and digital assets totaled $61.9M at quarter end, up 42% year-over-year.

Financial highlights

• Revenue for the March quarter increased 9% sequentially to $12.6 million, driven by higher self-mining revenue.

• Mined 91 Bitcoin, down from 97 the prior quarter, due to network difficulty despite higher hashrate.

• Operating and maintenance costs rose to $7.6M, mainly from higher energy rates and increased hashrate.

• Margin percentage on revenue less operating and maintenance costs was 40%, down from 43% prior quarter.

• Net income was -$3.3 million, or -$0.02 per share, similar to the prior quarter.

Outlook and guidance

• Expect hosting revenue to decline to near zero as capacity shifts to self-mining and AI.

• Non-mining expenses expected to rise only modestly in 2025 due to cost controls and lower interest expense.

• Focused on securing long-term government AI contracts, with optimism for agreements in the coming months.

• Expansion to 3 exahash targeted by year-end, with new equipment expected to be sourced at lower cost per megawatt.

• Pursuing non-dilutive financing through public and private sector off-take agreements.