Canadian BTC block rewards miner DMG Blockchain (NASDAQ: DMGGF) has announced expansion following a fundraising campaign that generated $16 million for the company.
DMG, which is dual-listed on the Toronto and Frankfurt Stock Exchanges, invested $5 million to purchase a hydro-miner from Bitmain. The miners have an efficiency of 15 J/TH, the company said in a press release.
“With our recent financing, which added $16 million to DMG’s cash balance, we have immediately allocated approximately $7 million to purchase capital equipment to grow our business,” said CEO Sheldon Bennett.
“We continue to explore the most effective ways to deploy this new capital to maximize shareholder returns.”
Recent investments have included the purchase of a 1MW hydro mining rig and six 1MW containers, which the company expects to be fully installed by the end of this year. The newly ordered batch will be installed by February 2025. Combining the two batches adds 0.4EH/s to the company’s hash rate. This results in a total hash rate of 2.1EH/s.
In addition to purchasing new mining machines, DMG plans to diversify its portfolio by increasing investments in subsidiaries that focus on digital asset management. Furthermore, they plan to follow the playbook of all other BTC miners and invest in artificial intelligence (AI) infrastructure.
With AI being one of the most lucrative sectors in the tech world, many miners are either switching entirely from block reward mining to focus on AI, like Tether-backed Northern Data, or providing some of their computing resources to AI companies, like Hive. I’m transitioning. Digital (TSXV: HIVE | OTCQX: HVBTF | FSE: HBF) and Bitdeer (NASDAQ: BTDR) did this.
For DMG, its recent partnership with the Malahat Nation is central to its AI ambitions. Malahat is an island region in British Columbia with a strong cultural identity.
The partnership, announced a month ago, aims to develop a 30MW AI data center on the island. In his comments, Bennett noted that the data centers are “not only advancing critical infrastructure, but also empowering Indigenous communities to play a leading role in the future of technology.”
DMG will not be the last BTC block reward miner to explore better luck through AI. The entire sector is built on the assumption that BTC will always rise because mining costs have exceeded asset prices in recent years. Miners have been accumulating debt to boost the hash rate for years, hoarding BTC and waiting for the price to soar to cash it out. But in a bear market, when creditors came calling, most miners couldn’t cover their positions. , some industry giants have been forced to file for bankruptcy, such as Core Scientific (NASDAQ: CORZW).
View: Want to develop on BSV? Here’s how to create one using a mandala:
title=”YouTube video player”frameborder=”0″allow=”Accelerometer; Autoplay; Write clipboard; Encrypted media; Gyroscope; Picture in picture; Web sharing” Referrerpolicy=”strict-origin-when-cross- origin “allowfullscreen=””>