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DMG Blockchain Solutions Announces MOU to Purchase 10 MW Data Center Infrastructure

DMG Blockchain Solutions Announces MOU to Purchase 10 MW Data Center Infrastructure

DMG Announces MOU to Purchase 10 MW Data Center Infrastructure

February 25, 2025

DMG Announces MOU to Purchase 10-Megawatt Data Center Infastructure

DMG Blockchain Solutions announces it has signed a memorandum of understanding with an undisclosed counterparty to purchase the infrastructure for a prefabricated 10-megawatt air-cooled data center that meets Sensitive Compartmented Information Facility specifications for its deployment of Generative Artificial Intelligence computation facilities. DMG and Counterparty have agreed to work towards a definitive agreement within the next 90 days, during which time DMG will perform its due diligence as a follow-up to its already performed initial inspection of the PDC at Counterparty’s site. DMG will issue an additional news release related to the final structure and terms of the potential transaction, and other material information if and when it becomes available.

Upon execution of the definitive agreement, DMG would pay Counterparty for the PDC US$5 million as an upfront payment and the balance of the to-be-agreed-upon price based on future DMG revenue resulting from Gen AI computing off-take agreements as part of vendor financing being offered to DMG. Revenue from off-take agreements may be derived from either GPUs that DMG purchases or the colocation of customer-purchased GPUs. DMG is currently focused on securing off-take agreements, which may be sourced from entities that require SCIF requirements, such as federal government agencies/departments, non-governmental entities (potentially with enterprise SCIF requirements), Counterparty and/or with other parties with whom the Company has a relationship to develop Gen AI business opportunities, which may be outside of Canada. DMG intends to deploy the PDC at one or more locations, as the PDC can be partitioned into smaller units due to its modular nature. While the infrastructure forms the basis for a Gen AI data center, it does not include medium-voltage power distribution, battery storage or backup power generation, the configuration and amount of which have yet to be determined. Additionally, the PDC is not facilitated with computing, networking nor storage systems, all of which will need to be installed to realize revenue from off-take agreements.

DMG’s CEO Sheldon Bennett stated, “This MOU catalyzes our entry into Generative AI in a very meaningful way. Not only does the PDC shorten our time to deployment by at least a year, but it also gives us the needed credibility as a new AI entrant to secure off-take agreements in a timely manner. Given the SCIF (military-grade) nature of the infrastructure, we will be focused on off-take opportunities that prioritize this need, as we believe we can garner a revenue premium for offering this capability. This MOU also enables us to proceed with our Gen AI strategy in a most-capital efficient manner, helping us to maximize our return to shareholders.”

DMG Q1 2025 Financial Results and Corporate Update Call

The Company will host a conference call to review its Q1 2025 financial results and provide a corporate update on Tuesday, March 4, 2025 at 4:30 PM ET. Participants should register for the call via the registration link.

In addition to a live Q&A session via chat, management will also address pre-submitted questions. Those wishing to submit a question may do so via email at [email protected], using the subject line 'Conference Call Question Submission,' through 2:00 PM ET on March 4, 2025.

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DMG’s mission is to lead the digital asset industry by meeting the most stringent compliance requirements while focused on environmental requirements.

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