DMG Blockchain Solutions Inc., a vertically integrated blockchain and data center technology firm, has released its preliminary operational results for June 2025. The report highlights key metrics and operational challenges faced during the month, alongside strategic updates on infrastructure and expansion plans.
June 2025 Operational Summary
The company reported a decrease in several key performance indicators compared to May 2025:
- Bitcoin Mined: 23 BTC, down from 31 BTC in May.
- Operational Hashrate: 1.56 EH/s, a decrease from 1.89 EH/s the previous month.
- Bitcoin Holdings: 341 BTC at month-end, compared to 350 BTC.
Factors Impacting June Performance
The decline in hashrate and Bitcoin production was primarily attributed to two significant issues at the company's Christina Lake facility.
An unscheduled electrical outage, lasting nearly two days, was caused by a regional lightning storm that tripped a main substation breaker, requiring extensive repairs. Concurrently, the company's hydro mining infrastructure experienced downtime due to contamination issues linked to manufacturer quality control problems.
DMG has been actively addressing these hydro infrastructure challenges over recent weeks. The company believes that with additional servicing and close monitoring, it can optimize the performance of its current hydro mining capacity, aiming to bring it closer to its full potential of 0.4 EH/s. These hydro miners are engineered to function in ambient temperatures exceeding 40 degrees Celsius, though at reduced efficiency levels during summer heat.
Strategic Infrastructure and Expansion Plans
Learning from its initial 6-megawatt hydro mining container deployment, DMG plans to source new hydro infrastructure components from alternative manufacturers. For the planned Christina Lake building deployment, the company will utilize its existing electrical distribution and shelving while procuring key liquid-cooling components from best-of-breed vendors.
This strategy is designed to streamline the transition from air-cooled to direct liquid-cooled mining, providing improved supply chain quality control and infrastructure integration. DMG intends to construct a pilot system this summer, ahead of its broader goal to expand to a total of 3 EH/s by the end of 2025.
In line with prior guidance, the company sold a portion of its Bitcoin holdings during June to fund operational expenses and further reduce its loan balance with Sygnum Bank.
New Mining Site Agreement
DMG also announced the execution of a binding agreement to develop a new data processing center outside of British Columbia, Canada. This site will have access to low-cost renewable energy and supports the company's long-term strategy to base the majority of its Bitcoin mining operations in regions with inexpensive power.
Once fully operational, the new facility is expected to add approximately 1 EH/s of Bitcoin mining capacity. The commissioning timeframe is currently projected for the second half of 2026, contingent on equipment selection and deployment schedules.
Leadership Commentary and Other Updates
Sheldon Bennett, CEO of DMG, commented on the month's developments: "In June, we encountered several unforeseen issues with our Bitcoin mining infrastructure, but we also advanced our longer-term objective to migrate our Bitcoin mining to where energy is less expensive."
He also noted progress in discussions with Canadian governmental agencies, including the Department of National Defence, amidst Canada's pledge to increase military spending with a focus on AI. Regarding its subsidiary, Systemic Trust, the company remains encouraged by client onboarding and plans to expand the platform's capabilities beyond digital asset custody.
Additionally, DMG announced the granting of 201,607 stock options and 1,275,000 restricted stock units (RSUs) to employees and directors. The options are exercisable at $0.285 per share over five years, with vesting increments every six months. The RSUs vest over one year. These grants are designed to create an incentive structure aligned with the company's long-term growth.
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Frequently Asked Questions
What caused DMG's Bitcoin production to decrease in June 2025?
The decrease was primarily due to a nearly two-day electrical outage from a lightning storm and ongoing downtime with its hydro mining infrastructure caused by manufacturer-related contamination issues. These factors collectively reduced the operational hashrate.
What is DMG's strategy for improving its hydro mining infrastructure?
The company plans to source key hydro infrastructure components from alternative, best-of-breed vendors to improve quality control and reliability. This involves using existing electrical systems for new deployments to simplify the transition to liquid-cooling.
Where is DMG planning its new mining facility?
DMG has executed a binding agreement to develop a new data center in a Canadian province outside of British Columbia. The site was selected for its access to low-cost renewable energy and is part of a broader strategy to optimize operational expenses.
How does DMG plan to fund its operations and expansions?
The company sells a portion of its mined Bitcoin to fund operational expenses and reduce debt, as stated in its prior guidance. This approach helps manage capital without solely relying on external financing.
What are the company's hashrate growth targets?
DMG aims to grow its total hashrate to 3 EH/s by the end of the 2025 calendar year. The new facility outside British Columbia is expected to contribute an additional 1 EH/s upon its commissioning in late 2026.
What is the focus of Systemic Trust, DMG's subsidiary?
Systemic Trust Company operates as a carbon-neutral Bitcoin custody platform, enabling financial institutions to move Bitcoin in a sustainable and regulatory-compliant manner. The focus is on onboarding custody clients and expanding platform capabilities.