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VANCOUVER, British Columbia, April 15, 2019 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain technology company, is pleased to provide a corporate update.
During the past few months, management has been very active in developing the business of the Company. In that regard, we provide you with a summary of various corporate developments.
DMG Hosting Update
The Company’s flagship facility is currently hosting more than 10,000 individual miners for clients in both Canada and the United States (approximately 12% of total facility capacity). With the recent appreciation in BTC price, and the launch of new miners from Innosilican and Bitmain, demand for DMG’s hosting services continues to increase.
DMG is in the late stages of collaboration with a major ASIC (chip) manufacturer to provide a disruptive pricing model (including both the mining equipment and the hosting fees), targeting institutional clients. DMG will provide updates as this project progresses.
DMG Software - Walletscore
DMG’s Anti-Money Laundering software, Walletscore, currently in use by financial institutions, regulators, and consumers, was recently released and the API has now been completed. Currently, the software provides coverage for BTC and ETH, and DMG expects to release new updates for various ERC-20 tokens as the engineering team completes each version. Walletscore’s unique multicoin functionality, and its ability to identify individual wallets and cryptocurrency anonymizing services (mixers), distinguishes it from other leading competitors in the marketplace.
The Company is currently on a sales and marketing drive with our European partner, Spirit Blockchain Capital. DMG has received excellent feedback to our Walletscore and Blockseer products throughout the financial and crypto districts in Europe. The Company intends to onboard numerous European clients shortly and will update as this progresses.
The Company was recently engaged to assist two law firms in the United States to perform forensic services on their behalf, relating to their legal investigations against certain ICO firms. DMG uses its expertise as well as its software, including Blockseer and Walletscore, to perform these complicated forensic audits. DMG sees a tremendous opportunity to expand its forensics practice, and is currently also in discussions with Canadian firms who need to undertake forensic audits.
DMG Audit and Legal Update
As previously announced, on February 14, 2019, the Company retained Manning Elliott as its new auditing firm. We are pleased with the progress to date, and are confident that the audit will be completed within a few weeks.
The Company also reports that a claim against the Company has been filed in BC Supreme Court by a previous client, Bitmaster Inc. DMG believes there is no merit to the claim, and has filed its response. Furthermore, DMG is reviewing all legal options available to resolve this matter.
Wazabi IBM Supply Chain Management
As previously announced, DMG is working with IBM Canada Ltd. (“IBM”) to jointly develop a global blockchain platform for regulated products. DMG CEO Dan Reitzik and IBM will present and unveil together, project “Wazabi”, along with releasing the first version of the software at the Arcview Conference in Vancouver, BC on April 23, 2019.
DMG thanks you for your support during this recent period and will continue to provide timely updates.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain technology company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions, please visit: www.dmgblockchain.com.
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, further development and sales of WalletScore, acquisition of customers, product development, development of Wazabi with IBM, increasing hosting capacity and customers, current litigation, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
The securities of DMG are considered highly speculative due to the nature of DMG’s business.
Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.