• DMG Blockchain Solutions reported a net loss of $7.0 million in Q1 2023 despite mining 50% more Bitcoin than the previous year.
• The company attributed the loss to lower revenues and increasing operating costs.
• DMG has a strong balance sheet, with $10.9 million in cash and 453 BTC, as well as debt of $1 million as of Dec. 31, 2022.
DMG Blockchain Reports Net Loss
DMG Blockchain Solutions Inc., a crypto mining firm, reported an unaudited financial result for the first quarter of 2023 with a net loss of $7.0 million despite mining 50% more bitcoin than the previous year. The company attributes this loss to lower revenues and increasing operating costs.
Decrease in Revenue
The reported revenue was $7.2 million which is a 50% decrease from the previous year’s quarter primarily due to decline in average bitcoin price. Despite this, DMG managed to mine 50% more bitcoin than the prior year period with total 274 mined bitcoin.
Petra Technology Utilized
The CEO highlighted success of Petra technology utilized by DMG which places Ordinals on Bitcoin blockchain for NFT creators who want to utilize most immutable digital asset ledger can do so in carbon-neutral manner. The COO emphasized on managing cash closely and spending concentrated on Core+ and immersion cooling initiatives for incremental improvements to its mining operations.
Strong Balance Sheet
Despite reporting net loss, report asserted that DMG has strong balance sheet with $10.9 million in cash and 453 BTC and debt of $1 million as of Dec 31 2022. Company has invested heavily on crucial infrastructure and software initiatives aimed at optimizing investments in challenging crypto environment .
Hut 8 Merger
Last month Hut 8, a prominent Canadian cryptocurrency miner known for its focus on innovation completed an all-stock merger with US Bitcoin Corp resulting in formation of new company Hut 8 Corp which now operates 9 datacenters across North America that are powered by clean energy resources