VANCOUVER, British Columbia, Dec. 04, 2025 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) ("DMG"), a leading vertically integrated blockchain and data center technology company, announces an update to its Christina Lake site AI development strategy. The Company had provided guidance for a gradual transition of its Christina Lake data center facility from Bitcoin mining to Artificial Intelligence (AI) that would span several years. It now believes the best ...

Core Viewpoint - CleanSpark (CLSK) is shifting its focus from being primarily a Bitcoin miner to entering the AI data center space, attracting renewed interest from investors [1] Company Summary - CleanSpark was previously recognized as a pure play in Bitcoin mining but is now pivoting towards AI data centers, indicating a strategic shift in its business model [1] Industry Summary - The move towards AI data centers reflects a broader trend in the technology sector, where companies are increasingly investing in artificial intelligence capabilities to enhance operational efficiency and drive growth [1]

Core Viewpoint - CleanSpark (CLSK), previously focused solely on Bitcoin mining, is now attracting renewed investor interest as it transitions its operations towards the AI data center sector [1] Company Summary - CleanSpark is shifting its business model from being a Bitcoin miner to entering the AI data center market, indicating a strategic pivot to capitalize on emerging technology trends [1] Industry Summary - The move by CleanSpark reflects a broader trend in the market where companies are diversifying their operations to include AI and data center capabilities, which are increasingly seen as growth areas in the tech industry [1]

Financial Data and Key Metrics Changes - CleanSpark achieved record revenues of $766 million for fiscal year 2025, representing over 100% year-over-year growth [19] - Gross margin was 55%, a slight decrease of 1% year-over-year, which is notable given it was the first full year post-Bitcoin halving [8][19] - Adjusted EBITDA exceeded $800 million, with a normalized adjusted EBITDA from operations of approximately $305 million, reflecting a net margin of about 40% [20] - The company produced nearly 8,000 Bitcoin during the fiscal year, with an average marginal cost per Bitcoin slightly below $43,000 and average revenue per Bitcoin around $98,000 [19][20] Business Line Data and Key Metrics Changes - The Bitcoin treasury grew by nearly 62% to over 13,000 Bitcoin, generated entirely from the company's own hash rate [9] - The operational hash rate reached 50 exahash per second, with 100% U.S.-based infrastructure [8] - The company is deploying 19,000 S21 XP immersion units, expected to be completed in Q1 2026 [9][10] Market Data and Key Metrics Changes - CleanSpark's operational efficiency improved significantly, contributing to consistent gross margins despite market fluctuations [20] - The company is strategically positioned to support the growing demand for AI compute alongside Bitcoin mining [7][8] Company Strategy and Development Direction - CleanSpark is evolving into a digital infrastructure platform, focusing on opportunities in generative AI, grid balancing through Bitcoin mining, and high-performance computing [5][6] - The company aims to diversify revenue streams and enhance margins through a blended approach to monetizing its portfolio [8] - A significant focus is on securing tenants for AI campuses while expanding land and power capabilities [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in the HPC-AI space, citing strong inquiries for their facilities [43] - The company is confident in its ability to navigate market volatility and capitalize on opportunities due to its strong financial position [44] - CleanSpark is committed to maintaining operational excellence and leveraging its infrastructure-first model to maximize value [36][38] Other Important Information - CleanSpark completed its largest financing ever with a $1.15 billion upsized 0% convertible note, which included a stock buyback of $460 million [17][33] - The company has secured a 285 MW site in Texas for AI factory development, with a multi-gigawatt pipeline of additional opportunities [12][13] Q&A Session Summary Question: Can you provide insight into client conversations and demand outlook for HPC-AI? - Management reported extensive discussions with potential clients, including strong interest in their Texas and Georgia sites, indicating robust demand in the HPC-AI space [43][44] Question: How does the company view pairing Bitcoin mining with HPC campuses? - Management sees potential in blending Bitcoin mining with HPC to provide power usage versatility, which could enhance operational flexibility [45][48] Question: What key milestones should investors look for in 2026 regarding HPC strategy? - Management highlighted the importance of the Texas and Sandersville sites, which are positioned for rapid deployment to meet 2026 demand [51][52] Question: What are the near-term expansion plans for Bitcoin mining? - The company plans to migrate Bitcoin mining operations to more remote locations, prioritizing efficiency and favorable utility rates [56][58] Question: How does the company plan to utilize its Bitcoin balance strategically? - Management intends to monetize the Bitcoin stack through yield strategies and opportunistic borrowing, maintaining flexibility in capital management [66] Question: What is the economic impact of the MOU with Submer? - The partnership with Submer is expected to enhance speed to market and reduce costs for AI and HPC infrastructure development [70][71]

Company Overview - Nebius Group (NASDAQ:NBIS) gained attention after Nvidia revealed its investment in the company, participating in a $700 million private placement and currently holding nearly 1.2 million shares valued at approximately $112 million [1] - The company has become a significant player in the AI infrastructure sector, driven by the increasing demand for GPU-intensive processing [1] Financial Performance - Nebius reported a remarkable growth in core AI revenues, soaring approximately 400% year-over-year and 40% quarter-over-quarter in the latest period [2] - Despite the stock reaching record highs, shares have since dropped 33% from that peak, with a notable 20% decline in the past week due to third-quarter earnings that fell short of revenue expectations [3] Market Position and Strategy - The company is strategically focusing on energy supply as a critical factor for AI development, with Microsoft CEO Satya Nadella emphasizing that energy and data center space are the primary bottlenecks [4] - Nebius aims to increase its contracted capacity to 2.5 gigawatts by late 2026, reflecting a strong bet on sustained demand for AI infrastructure [5] Capacity and Contracts - Achieving multi-gigawatt operations would allow Nebius to support hundreds of thousands of GPUs, positioning it as a cornerstone provider for AI workloads [6] - The company secured significant contracts, including a $3 billion five-year agreement with Meta and a $17.4 billion deal with Microsoft for AI infrastructure [7]

Core Viewpoint - Core Scientific (CORZ) is transitioning from crypto mining to artificial intelligence (AI) operations, leading to a significant increase in stock value and interest from potential acquirers like CoreWeave (CRWV) [1][2] Company Developments - CoreWeave previously offered $9 billion for Core Scientific, but shareholders believe the company's value will increase further if they hold out [2][4] - Core Scientific's stock has risen 152% over the past six months, despite a recent minor decline of nearly 5% [2] - The company has a current market capitalization of $7.1 billion, which is below the acquisition offer from CoreWeave, indicating shareholder confidence in future growth [4] Analyst Insights - Analysts have raised their price targets for CORZ stock significantly, with Cantor Fitzgerald setting a target of $26, Macquarie at $34, B. Riley at $30 (up from $17), Bernstein at $24 (up from $17), and Roth Capital at a new high of $40 [3] Future Potential - Core Scientific is positioned to benefit from the AI buildout, with expectations of signing more contracts as hyperscalers increase their data center investments [5] - The company has an active contract with CoreWeave worth $8.7 billion over 12 years, including a $1.2 billion expansion announced in February [6] - Analysts predict positive earnings per share (EPS) starting in 2026, with revenue growth projected at 113%, reaching $801.2 million [6] Investment Outlook - The outlook for Core Scientific appears positive, with the potential for securing more multi-billion-dollar partnerships and a strong contracted capacity that supports further upside for shareholders and analysts [7]

Core Insights - Nebius (NASDAQ: NBIS) is experiencing significant demand due to its focus on artificial intelligence (AI) functionalities, operating a network of data centers tailored for AI technology [1] - The stock has seen substantial appreciation, with a $10,000 investment growing to $43,590 in six months [2] - Revenue growth is impressive, with a 625% year-over-year increase to over $105 million in Q2, although the company reported a net loss of over $91 million [3][4] - The company is expanding its capacity to 1 gigawatt next year and has a strong cash position of approximately $1.7 billion [4] - Current valuations are high, with a price-to-sales ratio nearing 100 and a price-to-book ratio exceeding 7, indicating that strong growth expectations are necessary to justify these levels [5] - Despite its potential in the AI data center market, the stock is considered prohibitively expensive at present [6] Financial Performance - Nebius reported a revenue increase of 625% year-over-year, reaching over $105 million in the second quarter [3] - The company faced a net loss of over $91 million, worsening from a loss of under $62 million in the previous year [3] Market Position - Nebius is positioned as a significant player in the AI data center market, but it faces competition and high valuations that may deter investment at current levels [6]

Group 1 - Applied Digital's stock fell 13.1% this week despite securing an $11 billion AI data center deal with CoreWeave [1][2][3] - The company announced a 150MW lease agreement with CoreWeave, increasing its total anticipated contracted lease revenue to approximately $11 billion, which includes $7 billion previously announced [3][4] - Applied Digital's current market capitalization is around $3.6 billion, indicating that the new deal represents more than double the company's market cap, although the revenue will be spread over 15 years [4] Group 2 - The company faces challenges in building and financing the expansion of its infrastructure, needing to construct three data centers over the next two years, which will require substantial capital expenditure [5] - Concerns about valuation persist, as the company carries significant debt and will need to borrow more at high rates or dilute its stock [6] - The reliance on a single customer for a large portion of revenue poses additional risks, especially given that this customer is also highly leveraged and dependent on a small customer base [6]

Core Insights - CoreWeave, Inc. (CRWV) has raised $25 billion in debt and equity since 2024 to expand its capacity in response to increasing AI compute demand [1][10] - The company aims to achieve 900 MW of active power by year-end to position itself as a leading provider for large-scale AI workloads [3][10] - Interest expenses have surged to $267 million compared to $67 million a year ago, with expectations for Q3 interest expenses between $350 million and $390 million [4][10] Financing and Capacity Expansion - CoreWeave closed a $2.6 billion delayed draw term loan facility to enhance service delivery for OpenAI and expand its infrastructure [2] - The company is undertaking significant data center investments, including a $6 billion project in Lancaster, PA, and another in Kenilworth, NJ, through a joint venture [3] - The financing includes two high-yield offerings: a $2 billion issuance in May and a $1.75 billion issuance in July, both of which were oversubscribed [1][2] Financial Performance and Challenges - CoreWeave reported a net loss of $291 million and an adjusted net loss of $131 million in Q2, primarily due to high interest expenses [4] - The company faces challenges from increasing capital expenditures projected at $20-$23 billion in 2025 and intense competition from rivals like Nebius and Microsoft [5] - The ability to manage high leverage and ballooning interest expenses will be critical for CoreWeave's future growth [5] Competitive Landscape - Nebius aims to secure 1 GW of capacity by 2026, with an annualized run rate of $430 million as of June [7][8] - Microsoft has added over 2 GW of new data center capacity and has significant financial resources, with $94.6 billion in cash and equivalents [9][10] - The competition in the AI cloud market is intensifying, with major players ramping up their capacity and investments [5][11] Market Performance - CoreWeave shares have declined by 25.6% over the past month, contrasting with a 3.1% growth in the Internet Software industry [12] - The company's Price/Book ratio stands at 16.78X, significantly higher than the industry average of 6.3X [14] - Earnings estimates for CoreWeave for 2025 have been revised downwards over the past 60 days [15]

Core Viewpoint - Hyperscale Data, Inc. has successfully reduced its outstanding debt by over $20 million, marking a significant step in its transition to a dedicated AI data center platform [1][2][3] Financial Position - The debt reduction enhances the company's financial stability as it prepares to develop a 617,000-square-foot data center in Michigan, aimed at becoming a major AI infrastructure hub [2][3] - The company believes its remaining debt is relatively insignificant in the context of its strategic growth plans, allowing for a more agile capital structure [3] Operational Developments - The company is focused on scaling operations and onboarding enterprise and hyperscale customers to maximize the potential of its infrastructure [3] - Hyperscale Data has reached an agreement to expand available power at its facility from approximately 30 MW to 300 MW, with completion expected in about 44 months [4] - An additional agreement with the local natural gas utility aims to supply an extra 40 MW of power, expected to be completed within 18 months [5] Market Validation - The company sees strong market validation for large-scale AI data centers, citing Applied Digital Corporation's recent 15-year hosting contract with CoreWeave, expected to generate over $7 billion in revenue from 250 MW of AI and HPC infrastructure [6] Strategic Focus - The company plans to complete its separation from Ault Capital Group, Inc. by the end of 2025, positioning itself as a focused AI infrastructure business [7][12] - The Michigan data center buildout remains the company's top priority, with expectations of unlocking significant long-term value as demand for AI and enterprise computing grows [8]