VANCOUVER, British Columbia, Feb. 25, 2026 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSXV:DMGI) (OTC:DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and data center technology company, today announces its fiscal first quarter 2026 unaudited financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company’s December 31, 2025 quarterly unaudited financial statements and management’s discussion and analysis thereof for an assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca.
Q1 2026 Financial Results Highlights
- Revenue: $11.2 million in Q1 2026, down 2% from $11.4 million in Q4 2025 and down 4% from $11.6 million in Q1 2025
- Bitcoin Mined: 69 bitcoin, down from 72 bitcoin in Q4 2025 and 97 bitcoin in Q1 2025
- Hashrate: 1.76 EH/s, up 10% from Q4 2025, with fleet efficiency of 22.0 J/T
- Cash, Short-term Investments and Digital Assets: $58.6 million at the end of Q1 2026, down 10% from $65.2 million at year-end 2025
- Total Assets: $122.0 million at the end of Q1 2026, down 8% from $132.0 million at year-end 2025
- Net Income: -$2.2 million or -$0.01 per share
DMG’s CEO, Sheldon Bennett, commented, “In Q1 2026, we continued to execute on our two strategic pillars: our Core data center operations and our Core+ Digital Asset Financial Services. We are highly focused on converting our Christina Lake facility into an AI data center capable of providing at least 50 megawatts of critical IT load to fill an industry gap in available capacity. Simultaneously, we are building out our Digital Asset Financial Services, with Systemic Trust serving as the cornerstone for future revenue growth. We are actively pursuing AI off-takers and potential government partnerships, as we believe these strategic initiatives will deliver lasting value to our shareholders.”
First Quarter 2026 Financial Results Review
Revenue decreased from $11.6 million for the three months ended December 31, 2024 (“Q1 fiscal 2025”) to $11.2 million for the three months ended December 31, 2025 (“Q1 fiscal 2026”). The decrease in revenue is attributable to a $1.8 million decrease in digital currency mining revenues, partially offset by other revenue of $1.5 million related to an energy efficiency incentive. The decrease in mining revenue is the result of lower average Bitcoin economics in Q1 fiscal 2026 compared to Q1 fiscal 2025.
Operating and maintenance expenses for Q1 fiscal 2026 were $6.7 million, consistent with Q1 fiscal 2025. General and administrative costs for Q1 fiscal 2026 were $1.9 million, consistent with Q1 fiscal 2025 general and administrative costs of $1.8 million. The main driver of the increase was higher consulting fees during Q1 fiscal 2026 as the Company makes investments in its AI strategy. Research costs for Q1 fiscal 2026 were $0.6 million which remained relatively stable compared to $0.6 million for Q1 fiscal 2025.
Depreciation for Q1 fiscal 2026 was $3.5 million compared to $4.3 million in Q1 fiscal 2025. The $0.8 million decrease is primarily driven by the declining balance depreciation method, which results in higher depreciation charges immediately following asset activation. There were significant additions in fiscal 2023 and early in fiscal 2024 which resulted in higher depreciation expense for Q1 fiscal 2025 as compared to Q1 fiscal 2026.
Net loss decreased by $0.9 million from a net loss of $3.1 million for Q1 fiscal 2025 to a net loss of $2.2 million for Q1 fiscal 2026. The reduced loss is primarily a result of a reduced …