DMG Blockchain Solutions Reports Second Quarter 2025 Results

Core Viewpoint - DMG Blockchain Solutions Inc. reported its fiscal second quarter 2025 financial results, highlighting an increase in revenue and advancements in Bitcoin mining and AI strategy, despite a net loss for the period [1][3][8]. Financial Performance - Revenue for Q2 2025 was $12,644,574, an increase of 9$11,633,825 in Q1 2025 and up 26% from $10,015,659 in Q2 2024 [4][8]. - The company mined 91.27 Bitcoin during Q2 2025, a decrease from 97 Bitcoin in Q1 2025, ending the period with a total of 458.07 Bitcoin [4][8]. - Operating and maintenance expenses rose to$7,625,097, up from $5,270,851 in the prior year period, primarily due to increased utility costs and new hosting fees [5][8]. - General and administrative costs increased to$1,936,402 compared to $1,846,398 in the prior year, mainly due to financing costs related to a credit facility [7][8]. - The net loss for Q2 2025 was$3,346,351, a decrease of $3,348,566 from the prior year period [8][16]. Assets and Cash Flow - Total assets as of March 31, 2025, were$129,506,488, an increase of $25,637,507 from the previous year, driven by short-term investments and digital currency [8][15]. - Cash, short-term investments, and digital assets totaled$61,900,000 at the end of Q2 2025, down 3% from Q1 2025 but up 42% from Q2 2024 [8]. - Cash flow from operations was negative at -$1,000,000 for Q2 2025, as the company mined$7.1 million more Bitcoin than it sold [8]. Strategic Developments - The company is focusing on increasing its Bitcoin mining hashrate through the deployment of hydro direct-liquid-cooled miners and advancing its AI strategy with new data center infrastructure [3][12]. - DMG is engaging with Canadian public sector entities and private enterprises for off-take agreements to pursue non-dilutive financing opportunities [3][12]. - The Systemic Trust digital asset custody platform is being developed to enhance customer adoption and broaden its capabilities throughout 2025 [3][12].