DMG Blockchain Solutions Reports Fourth Quarter and Full Year 2025 Audited Results

Executive Summary

• DMG Blockchain Solutions Inc. reported its audited fiscal fourth quarter and full year 2025 financial results, highlighting significant growth in revenue and operational efficiency despite a net loss driven by accounting treatments.
• Full-year 2025 revenue increased by 40% to $47.3 million, driven primarily by a $12.2 million increase in digital currency mining revenues due to higher Bitcoin prices and expanded mining capacity.
• The company reported a net loss of $10.3 million ($0.05 per share) compared to a $5.2 million loss in 2024; however, comprehensive income rose to $11.3 million due to $21.7 million in unrealized gains from Bitcoin revaluation recognized in other comprehensive income.

Key Details

• Revenue: $47.3 million for the year ended September 30, 2025, an increase of 40% from $33.9 million in 2024.
  • Digital currency mining revenue increased by $12,202,250.
  • Hosting service revenue decreased to $574,343 from $1,180,573 in the prior period.
• Bitcoin Operations:
  • Bitcoin Mined: 344 bitcoin.
  • Ending Balance: 342 bitcoin.
  • Average Hashrate: 1.70 EH/s (up from 0.96 EH/s in 2024).
  • Fleet Efficiency: 22.7 J/TH (improved from 26.7 J/TH in 2024).
• Cash Flow & Balance Sheet:
  • Cash Flow from Operations: $16.2 million, up 97% from $8.2 million in 2024.
  • Cash, Short-term Investments, and Digital Assets: $65.2 million at year-end, up 81% from $36.0 million in 2024.
  • Total Assets: $132.0 million at year-end, up 27% from $103.9 million in 2024.
  • Short-term investments purchased: $9,116,500.
  • Net increase in digital currency assets: $20,112,897 (due to revaluation).
• Expenses:
  • Operating and Maintenance Expenses: $27,663,713 (up from $19,733,886 in 2024).
    • Utilities expenses rose by $6,299,161 due to additional mining capacity at the Christina Lake facility.
    • Hosting fees paid to third parties totaled $2,074,467.
  • Research Costs: Increased by $183,225, supporting efforts for Systemic Trust, Terra Pool, Helm, Reactor, and Blockseer Explorer.
  • General and Administrative Costs: $6,191,937 (up from $5,860,448 in 2024).
    • Financing costs increased by $508,786 related to the credit facility with Sygnum Bank.
    • Insurance costs increased by $109,783 for Systemic Trust coverage.
    • Professional fees and consulting expenses decreased by $347,116.
• Profitability:
  • Net Loss: $10,267,969 (or -$0.05 per share), an increase in loss of $5,038,407 from the prior year's $5,229,562.
  • Comprehensive Income: $11,339,861, up from $5,070,008 in 2024.
  • Unrealized Revaluation Gain: $21,671,555 recognized in other comprehensive income (did not reduce net loss).
• Strategic Updates:
  • Positioned for entry into the high-value AI infrastructure market.
  • Systemic Trust subsidiary achieved qualified custodian status and SOC 2 Type II certification.
  • Cultivated relationships with Canadian government, enterprises, and Indigenous communities for sovereign AI opportunities.
• Conference Call: Scheduled for December 18, 2025, at 4:30 PM ET.

Notable Quotes

• Sheldon Bennett, CEO: “In 2025, we positioned the Company to enter the high-value Artificial Intelligence (AI) infrastructure market and grow our digital asset financial services offerings. We cultivated relationships with the Canadian government, enterprises and Indigenous communities to capture unique sovereign AI opportunities with a strategic focus on a colocation business model. In addition, our digital asset custody subsidiary achieved qualified custodian status as well as SOC 2 Type II certification, positioning it for revenue growth in the calendar 2026. We believe our strong balance sheet can help us weather the current crypto market downturn while we remain focused on long-term growth and cash generation.”