DMG Blockchain Expands into Silicon Valley with Acquisition of Industry Leading Crypto-Analytics and A.I. Leader, Blockseer
- Blockseer has an expanding team of blockchain, AI, and data scientists based in Silicon Valley
- Customer base has included Bitstamp, Intuit, and Blockchain.info, one of the world’s largest cryptocurrency wallet providers
- Acquisition vaults DMG to leadership position in Blockchain Forensics – users include US Secret Service, FBI, IRS
- Influential shareholders that include Charlie Lee, the founder of Litecoin
VANCOUVER, B.C., March 07, 2018 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V:DMGI) (“DMG” or the “Company”) is pleased to announce the formal closing of the previously announced acquisition of Datient Inc., doing business as “Blockseer” (the “Transaction”).
The combined DMG – Blockseer alliance represents a strong competitive advantage in providing leading cryptocurrency forensics and proprietary real-time risk scoring for compliance and anti-money laundering (AML). Additionally, Blockseer’s blockchain and data analytics expertise provides the capabilities to uniquely offer class-leading enterprise solutions with a natural convergence of Blockchain and artificial intelligence technologies – data is the asset, which can be tracked and monetized utilizing blockchain technology.
Blockseer is a blockchain and artificial intelligence company headquartered in Silicon Valley, California. Blockseer has worked with several law enforcement agencies including the U.S. Secret Service, Federal Bureau of Investigation, and the Internal Revenue Service, and it also provides Ethereum blockchain data services for Blockchain.info, one of the world’s largest cryptocurrency wallet providers. Blockseer provides data analytics and incorporates artificial intelligence to provide insight into what is happening with digital currencies and blockchains.
Blockseer’s intellectual property (IP) includes two (2) United States provisional patents: (a) Providing Data Provenance, Permissioning, Compliance, and Access Control for Data Storage Systems Using an Immutable Ledger Overlay Network; and (b) Off Network Identity Tracking in Anonymous Cryptocurrency Exchange Networks.
Blockseer’s current team comes from Stanford, Harvard, University of Chicago, Carnegie Mellon and Columbia with deep experience in artificial intelligence, big data, and blockchain and is led by its Chief Executive Officer and founder, Danny Yang. Its advisors include Andreas Weigend, Bill Tai, Stephen Sorkin, Vas Bhandarkar, Phil Porras, and Brian Klein, and its influential shareholders include Charlie Lee, the founder of Litecoin.
“To date, DMG has received recognition as a market leader in the crypto mining space, and now with the Blockseer acquisition, DMG can claim leadership in the blockchain development arena and deliver on its commitment to be a diversified blockchain company. Blockseer is not a single blockchain application, but a blockchain development engine for multiple applications with well-known global customers. We believe that the Blockseer team is amongst the most talented in the industry today, and we welcome Dr. Danny Yang and the Silicon Valley team to DMG,” said Daniel Reitzik, CEO and Director of DMG.
Chris Filiatrault, DMG’s Chairman and Founder added, “Japan remains the largest crypto market in the world, and very few non-Japanese companies have been successful. With the Blockseer product line, and the DMG presence in the market today, Japan represents a massive opportunity for our stakeholders. We have already planned a visit for Dr. Danny Yang to visit Japan and look forward to sharing our progress in short order.”
Terms of the Transaction
Under the terms of the Transaction, DMG, through its U.S. subsidiary (“DMG-US”), acquired Blockseer for a purchase price comprising C$2,630,769 in cash and 7,673,076 common shares of DMG (the “Transaction Shares”).
The Transaction Shares issued to the former Blockseer securities holders will be subject to vesting with such shares vesting ratably on a calendar quarterly basis over a two-year period following the Closing (the “Trading Restrictions”).
Following the Transaction, DMG-US will own 100% of Blockseer, with DMG-US shares being owned approximately 61% by DMG and approximately 39% by the selling securityholders of Blockseer.
Upon completion of the Trading Restrictions, each individual holder of the DMG-US shall have the option to exchange such shares at the election of the holder 1-for-1 for DMG common shares, which will be fully tradable subject to the regulations of the TSX Venture Exchange. Additionally, in the event that upon completion of the Trading Restrictions, the per share price of DMG’s common shares is greater than C$0.40 (as adjusted for stock splits and consolidations), then DMG, at its sole election, shall have the option to exchange all of the shares of DMG-US held by the former security holders of Blockseer 1-for-1 for common shares of DMG, which will be fully tradable shares in accordance with the policies of the TSX Venture Exchange.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG intends to be the global leader in bitcoin mining hosting – Mining as a Service (MaaS), bitcoin mining, blockchain forensics/analytics, and blockchain platform development.
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
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