DMG Blockchain Solutions Inc.

In the June quarter, revenue was $11.6 million, down 8% from $12.6 million in the prior quarter and up 40% from $8.3 million a year ago. Net income was minus $0.4 million, or $0.00 per share, versus minus $3.3 million and minus $0.02 per share in the prior quarter. Gross-like margin on revenue less operating and maintenance costs was 44%, up from 40% in the prior quarter; operating and maintenance costs were $6.5 million, down 14% sequentially. Cash, short-term investments plus Bitcoin balance was $61.8 million, about flat sequentially and up 56% year over year. DMG received 84 Bitcoin from mining, sold 201 Bitcoin for $26.4 million of cash, and had an unaudited Bitcoin balance of 307 Bitcoin in July. Forward-looking commentary: management now expects Systemic Trust to generate material revenue next calendar year, not this calendar year; hosting revenue is expected to decline to near zero this calendar year; and the company is targeting 3 EH by year-end in a non-dilutive way, with near-leading-edge 13 to 16 joule/TH equipment later this year.

Sheldon Bennett emphasized that DMG is building a broader platform around a carbon-neutral Bitcoin ecosystem, but he was candid that Systemic Trust has taken longer than expected and that meaningful revenue is likely delayed. He framed AI, especially Canadian defense-related infrastructure, as a major longer-term opportunity and said DMG is strengthening execution-partner relationships and ministerial contacts. His tone was optimistic but realistic, repeatedly stressing non-dilutive growth, customer acquisition, and feature development as the next steps.

Steven Eliscu focused on capital structure and operating efficiency. He said cash, short-term investments plus Bitcoin were $61.8 million, the Sygnum loan balance fell from $20 million to $12.7 million in the June quarter and then below $10 million in the current quarter, and working capital rose 16% to $47.5 million. He also noted that revenue was $11.6 million, energy cost to mine a Bitcoin was about USD 51,000, cash flow from operations was $18 million, and depreciation expense was $4.5 million; he added that non-mine expenses were $2.4 million and should rise only modestly this year.

Analysts and management focused heavily on why Systemic Trust revenue has been slow, with Bennett saying the market is hard, compliance and onboarding cycles are longer than expected, and the company is now targeting smaller customers first. Questions also pushed on AI execution partners, the Canadian defense opportunity, Terra Pool visibility, and whether DMG should become a Bitcoin treasury company; management said it is not pursuing a pure treasury model and prefers using debt and balance-sheet flexibility for acquisitions and growth. On mining, management said the 3 EH goal is still possible this year via a retrofit of Christina Lake, with first megawatt testing expected next month, and reiterated that new miners would likely be financed non-dilutively.