DMG Blockchain Solutions Reports First Quarter 2026 Financial Results

Core Insights - DMG Blockchain Solutions Inc. reported its fiscal first quarter 2026 unaudited financial results, highlighting a focus on its core data center operations and digital asset financial services [1][3] Financial Performance - Revenue for Q1 2026 was $11.2 million, a decrease of 4% from $11.6 million in Q1 2025, primarily due to a $1.8 million drop in digital currency mining revenues, partially offset by $1.5 million from energy efficiency incentives [4][10] - Operating and maintenance expenses remained stable at $6.7 million, while general and administrative costs slightly increased to $1.9 million due to higher consulting fees related to AI strategy investments [5] - Depreciation expenses decreased to $3.5 million from $4.3 million in Q1 2025, reflecting the declining balance depreciation method [6] - The net loss for Q1 2026 was $2.2 million, an improvement from a net loss of $3.1 million in Q1 2025, attributed to reduced operating losses and foreign exchange impacts [7] - Comprehensive income/loss showed a significant decline, moving from a gain of $12.2 million in Q1 2025 to a loss of $16.5 million in Q1 2026, mainly due to unrealized valuation losses on digital currency [8] Asset and Cash Position - Total assets as of December 31, 2025, were $122.0 million, down from $132.0 million at the end of September 2025, driven by a $6.0 million decrease in digital asset valuations and $3.1 million in fixed asset depreciation [9][10] - Cash, short-term investments, and digital assets totaled $58.6 million at the end of Q1 2026, a decrease of 10% from $65.2 million at year-end 2025 [10] Operational Highlights - The company mined 69 bitcoins in Q1 2026, down from 97 bitcoins in Q1 2025, while the hashrate increased by 10% to 1.76 EH/s [10] - DMG is converting its Christina Lake facility into an AI data center with a capacity of at least 50 megawatts, aiming to fill an industry gap in available capacity [3] Future Outlook - The company is actively pursuing AI off-takers and potential government partnerships to drive future revenue growth through its Systemic Trust initiative [3]