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Source: DMG Blockchain Solutions Inc.

DMG Blockchain Receives Second Order in Excess of $3 million from Major Japanese Customer

VANCOUVER, British Columbia, Feb. 15, 2018 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V:DMGI) (“DMG” or the “Company”), is pleased to announced that it has secured a new customer for its bitcoin hosting business, known as “Mining-as-a-Service” (“MaaS”).

DMG received an order in excess of C$3 million from Forside Financial Services Inc. (“Forside”), a company headquartered in Tokyo, Japan for the hardware purchase and set-up, with monthly recurring hosting revenues to begin upon completion.  

Forside is a diversified technology company listed on the JASDAQ Standard of the Tokyo Stock Exchange (Tokyo:2330).

Mr. Izumi, the Chairman of Forside commented “We are excited and thankful to have DMG provide MaaS for our company and look forward to completing more business in the future with DMG. We conducted due diligence and spoke to many other companies and decided to do business with DMG due to its knowledge and expertise in this sector.”

“DMG’s access to the Japanese market continues to grow and we look forward to doing more business with Forside,” said Chris Filiatrault, Co-Founder and Chairman of DMG.

Daniel Reitzik, Chief Executive Officer and Co-Founder of DMG commented “We are delighted to onboard our second major hosting client from Japan, which represents a significant market opportunity for us and further validation of our MaaS model.” 

MaaS adopts a unique model by democratizing the ability for customers to become a cryptocurrency miner anywhere in the world in a cost-effective manner. DMG’s MaaS offering provides turn-key operations for clients by charging a set-up and monthly hosting fee.

In addition, DMG expects a previous order of an additional 1,000 S-9 bitcoin mining servers to arrive at one of its facilities in March, 2018.

DMG’s facilities and power access will be for its MaaS clients, and for DMG’s own use. This hybrid model allows DMG to scale at a faster pace and without as much capital, while at the same time enabling DMG to benefit from the appreciating value of bitcoin. This hybrid model balances out the capital requirements in the traditional mining model with the benefits of the value of bitcoin minted.

About DMG

DMG Blockchain Solutions Inc. is a full service diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG intends to be the global leader in bitcoin mining hosting, Mining as a Service (MaaS), bitcoin mining, forensics and diversified blockchain platform development.

On behalf of the Board of Directors,

Daniel Reitzik, CEO & Director

For further information please contact:

DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
Direct: 778-868-6470

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information based on current expectations. Statements about the transaction with Forside, other potential transactions, product development, customer acquisitions, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. 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 forwarding 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, 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 bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; 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, 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 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. DMG can give no assurance that it will secure additional MaaS customers.

Factors that could cause the 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 failures, lack of supply of equipment, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, 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.

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 release.