DMG Blockchain Solutions Reports Third Quarter 2025 Results

Executive Summary

• DMG Blockchain Solutions Inc. reported its fiscal third quarter 2025 financial results, showing a decrease in revenue but an improvement in net loss compared to the previous quarter.
• The company reported strong cash flow from operations of $18.0 million, driven by selling more Bitcoin than it mined, and ended the quarter with $61.8 million in cash, short-term investments, and digital assets.
• Operational highlights include a hashrate of 1.80 EH/s, the full service of 6 megawatts of hydro-enabled mining capacity, and the acquisition of 2 megawatts of prefabricated data center infrastructure for AI.

Key Details

• Revenue: $11.6 million for Q3 2025, a decrease of 8% from $12.6 million in Q2 2025, but an increase of 40% from $8.3 million in Q3 2024.
• Bitcoin Production: Mined 84.27 Bitcoin in Q3 2025, down from 90.79 Bitcoin in Q2 2025 and 87 Bitcoin in Q3 2024.
• Hashrate: 1.80 EH/s with a fleet efficiency of 22.6 J/T, representing a 2% increase from Q2 2025 and an 89% increase from Q3 2024.
• Cash Flow: Cash flow from operations was $18.0 million, resulting from selling $15.0 million more Bitcoin than was mined.
• Balance Sheet:
  • Cash, Short-term Investments, and Digital Assets: $61.8 million as of quarter-end (flat from Q2 2025).
  • Total Assets: $133.6 million as of quarter-end, up 3% from Q2 2025 and 20% from Q3 2024.
  • Digital Currency Balance: $50.7 million (up from $34.3 million at year-end 2024), largely due to revaluation as Bitcoin price rose to $148,296 from $88,673.
  • Short-term Investments: $9.1 million purchased during the period.
• Profitability:
  • Net Loss: -$0.4 million ($0.00 per share) for Q3 2025, an improvement from a net loss of -$3.3 million (-$0.02 per share) in Q2 2025.
  • Loss decreased by $2.97 million primarily due to reduced operating/maintenance costs, realized gains on digital currency sales, and foreign exchange gains.
• Expenses:
  • Operating and Maintenance Costs: $6.52 million (up from $4.68 million in Q3 2024), driven by a $1.39 million rise in utilities and $457,745 in hosting fees.
  • General and Administrative: $1.93 million (up from $1.48 million in Q3 2024), driven by higher professional fees and wages.
  • Depreciation: $4.48 million (down from $5.04 million in Q3 2024).
• Capital Expenditures & Investing:
  • Purchase of property and equipment: $10.8 million (nine-month period).
  • Deposits on mining equipment: $8.9 million (nine-month period).
  • Purchase of short-term investments: $9.1 million.
• Financing Activities:
  • Proceeds from issuance of units: $17.3 million.
  • Proceeds from secured loans: $5.8 million.
  • Repayment of loans payable: $8.1 million.
• Conference Call: Scheduled for August 25, 2025, at 4:30 PM ET.

Notable Quotes

• Sheldon Bennett, CEO: “In Q3, we significantly advanced our key initiatives, bringing into full service our 6 megawatts of hydro-enabled bitcoin mining. Additionally, we advanced our artificial intelligence (AI) infrastructure strategy with the purchase of 2 megawatts of prefabricated data center infrastructure. Finally, we oriented our Systemic Trust digital asset custody business for long-term growth with a focus on capitalizing on the proliferation of digital asset funds and treasuries. With a foundation of a strong balance sheet with $134 million in assets and increasing momentum among our key initiatives, we believe we can continue to generate cash while capitalizing on our initiatives for new revenue growth.”