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DMG Blockchain Solutions Reports Third Quarter 2026 Financial Results
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Rhea-AI Summary
DMG Blockchain Solutions (OTCQB: DMGGF) reported unaudited fiscal Q3 2026 revenue of $6.4 million, down 13% from Q2 2026 and 45% from Q3 2025, mainly due to lower digital currency mining volumes and prices. Bitcoin received from mining fell to 61.9 BTC, and hashrate declined 14% quarter-over-quarter to 1.47 EH/s with fleet efficiency of 21.9 J/TH.
Operating and maintenance expenses decreased to $4.4 million from $6.5 million, and G&A fell to $1.5 million. Depreciation dropped to $2.6 million. Net loss widened to $3.9 million (‑$0.02 per share). Total assets were $102.3 million, including $41.6 million in cash, short‑term investments and digital assets. DMG is advancing plans to transition its Christina Lake facility into a 50 MW AI data center under a previously announced colocation LOI and related project activities.
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Positive
- Operating and maintenance costs down to $4.4M from $6.5M YoY
- General and administrative expenses reduced to $1.5M from $1.9M YoY
- Depreciation expense decreased to $2.6M from $4.5M YoY
- Cash, short-term investments and digital assets total $41.6M at Q3 2026
- Secured loan proceeds of $7.4M raised in first nine months 2026
Negative
- Q3 2026 revenue down 45% YoY to $6.4M
- Bitcoin mined down to 61.9 BTC, 27% lower than Q3 2025
- Hashrate fell 14% QoQ to 1.47 EH/s with weaker efficiency
- Q3 2026 net loss widened to $3.9M from $0.4M YoY
- Net cash used in operating activities of $4.5M in first nine months 2026
- Total assets decreased by $29.7M since September 30, 2025, mainly from lower digital currency value
The AI project remains pre-definitive agreement, while the quarter reports $19,713,551 in current loans payable and $4,458,068 used in operations.
DMG’s unaudited Q3 report says its Christina Lake 50-megawatt AI colocation plan remains at the stage of working toward a definitive agreement; project execution steps are underway, but the release does not present a completed agreement.
At June 30, 2026
, the balance sheet listed $19,713,551
as the current portion of loans payable, placing a disclosed financing obligation in current liabilities.
For the nine months ended June 30, 2026
, the release reports $4,458,068
of net cash used in operating activities and $7,407,369
of proceeds from a secured loan.
The stated resolution point is a definitive agreement, which would clarify the AI project’s commercial terms; the release does not tie a financing amount or ownership terms to that project.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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VANCOUVER, British Columbia, Aug. 27, 2026 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated data center and digital assets technology company, today announces its fiscal third quarter 2026 unaudited financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company’s June 30, 2026 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.
Q3 2026 Financial Results Highlights
- Revenue:$6.4 million
, down 13%
from $7.3 million
in Q2 2026 and down 45%
from $11.6 million
in Q3 2025 - Bitcoin Received from Mining: 61.9 bitcoin, down 10%
from 68.8 bitcoin in Q2 2026 and down 27%
from 84.3 bitcoin in Q3 2025 - Hashrate: 1.47 EH/s, down 14%
from Q2 2026 with fleet efficiency of 21.9 J/TH, a 3%
decline - Cash, Short-term Investments and Digital Assets:$41.6 million
at the end of Q3 2026, down 12%
from $47.4 million
at the end of Q2 2026 - Total Assets:$102.3 million
at the end of Q3 2026, down 7%
from $109.9 million
at the end of Q2 2026 - Net Loss : -$3.9 million
or -$0.02
per share
DMG’s CEO, Sheldon Bennett, commented, “In Q3 2026, we focused on realizing our vision to transition our flagship Christina Lake facility to operate as an AI data center. Regarding our previously announced letter of intent to offer 50 megawatts of AI data center colocation services at our Christina Lake facility to a single tenant, we are actively working towards a definitive agreement. In parallel, we are moving forward with key project execution steps, including selecting our contractors and engineering design partners, strengthening our vendor relationships, applying for the necessary permits, exploring multiple financing options and addressing concerns from the local community. We remain committed to project success and enabling our off-take client to begin operating its servers in a timely manner.”
Third Quarter 2026 Financial Results Review
Revenue for Q3 2026 was $6.4 million
, compared to $11.6 million
in Q3 2025. The decrease in revenue is attributable to a decrease in digital currency mining revenue of $5.2 million
, which is primarily the result of a decrease in both the amount of digital currency mined and the average price of digital currency.
Operating and maintenance expenses for Q3 2026 were $4.4 million
, compared to $6.5 million
in Q3 2025. This decrease is primarily due to a $2.0 million
decrease in utilities expenses driven by favourable non-firm energy rates realized during the recent period and the retirement of inefficient digital currency miners.
General and administrative costs for Q3 2026 were $1.5 million
, compared to $1.9 million
in Q3 2025. General and administrative costs consist mostly of wages, professional fees, consulting fees and financing costs.
Depreciation for Q3 2026 was $2.6 million
, compared to $4.5 million
in Q3 2025. Additions to property and equipment during the nine months ended June 30, 2026 totaled $1.6 million
, compared to $19.5 million
and $21.9 million
in the fiscal years ended September 30, 2025 and 2024 respectively. The relatively low level of recent additions has limited the offsetting impact on depreciation expense, contributing to the lower depreciation expense for the current period.
Net loss for Q3 2026 was $3.9 million
compared to a net loss of $0.4 million
for Q3 2025.
Total assets as of June 30, 2026 were $102.3 million
(September 30, 2025 – $132.0 million
), a decrease of $29.7 million
. The decrease is mostly attributable to a $22.9 million
decrease in the fair value of digital currency balances between the periods, as well as a reduction in property and equipment of $8.7 million
, which resulted from normal course depreciation and the disposition of decommissioned miners, only partially offset by property and equipment additions during the period.
Third Quarter 2026 Results Conference Call Details
The Company will host a conference call to review its results and provide a corporate update on August 27, 2026 at 4:30 PM ET. Participants should register for the call
In addition to a live Q&A sessionThose wishing to submit a question may do so ‘Conference Call Question Submission,’ through 2:00 PM ET on August 27, 2026
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated data center and digital asset technology company that develops, manages, and operates comprehensive platform solutions to monetize the artificial intelligence (AI) and blockchain ecosystems. The Company’s operations are driven by two strategic pillars: Data Center Infrastructure (Core) and Digital Asset Software and Services (Core+). DMG is expanding its platform to include AI and sovereign compute solutions, supporting government, enterprise and research organizations across Canada.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG’s YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
communications@dmgblockchain.com
| DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars) |
|||||
| Notes | As at June 30, 2026 (unaudited) |
As at September 30, 2025 (audited) |
|||
| ASSETS | $ | $ | |||
| Current Cash and cash equivalents |
2,788,470 | 1,681,448 | |||
| Amounts receivable | 6 | 4,622,326 | 4,045,161 | ||
| Digital currency | 5 | 31,585,358 | 54,440,600 | ||
| Prepaid expense and other current assets | 247,132 | 330,077 | |||
| Marketable securities | 8 | 238,539 | 479,426 | ||
| Short-term investments | 9 | 7,216,500 | 9,116,500 | ||
| Assets held for sale | 10 | 30,408 | 30,408 | ||
| Total current assets | 46,728,733 | 70,123,620 | |||
| Long-term deposits | 11 | 203,641 | 138,415 | ||
| Property and equipment | 13 | 44,768,849 | 53,450,285 | ||
| Intangible assets | 12 | 2,821,019 | 1,181,414 | ||
| Long-term investments | 14 | 245,000 | 45,000 | ||
| Amount recoverable | 7 | 7,522,287 | 7,091,351 | ||
| Total assets | 102,289,529 | 132,030,085 | |||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||
| Current Trade and other payables |
15 | 5,123,881 | 6,370,626 | ||
| Deferred revenue | 4,891 | – | |||
| Current portion of lease liability | 16 | 76,901 | 106,619 | ||
| Current portion of loans payable | 17 | 19,713,551 | 10,885,374 | ||
| Total current liabilities | 24,919,224 | 17,362,619 | |||
| Long-term lease liability | 16 | 25,724 | 78,296 | ||
| Total liabilities | 24,944,948 | 17,440,915 | |||
| Shareholders’ Equity Share capital |
18(a) | 121,957,185 | 121,210,082 | ||
| Reserves | 18(b-d) | 56,921,844 | 56,316,695 | ||
| Accumulated other comprehensive income | 3,102,067 | 32,056,444 | |||
| Accumulated deficit | (104,636,515 | ) | (94,994,051 | ) | |
| Total shareholders’ equity | 77,344,581 | 114,589,170 | |||
| Total liabilities and shareholders’ equity | 102,289,529 | 132,030,085 |
| DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars, except for number of shares) (Unaudited) |
|||||||||||
For the 3 months ended June 30, |
For the 9 months ended June 30, |
||||||||||
| Notes | 2026 | 2025 | 2026 | 2025 | |||||||
| Revenue | 20 | $ 6,364,212 |
$ 11,614,710 |
$ 24,849,511 |
$ 35,892,109 |
||||||
|
Expenses Operating and maintenance costs |
21(a) |
4,408,556 |
6,519,599 |
16,300,195 |
20,824,539 |
||||||
| General and administrative | 21(b) | 1,465,351 | 1,930,372 | 4,730,942 | 5,703,453 | ||||||
| Share-based compensation | 557,663 | 735,540 | 1,661,662 | 2,151,182 | |||||||
| Research and development | 323,108 | 487,309 | 330,778 | 1,649,721 | |||||||
| Bad debt recovery | 6 | 792 | (231 | ) | (968 | ) | (6,950 | ) | |||
| Depreciation | 13 | 2,615,545 | 4,483,564 | 8,946,266 | 13,147,142 | ||||||
| Total expenses | 9,371,015 | 14,156,153 | 31,968,875 | 43,469,087 | |||||||
| Operating loss before other items | (3,006,803 | ) | (2,541,443 | ) | (7,119,364 | ) | (7,576,978 | ) | |||
|
Other income (expense) Interest and other income |
6, 7 |
62,539 |
174,705 |
430,935 |
505,655 |
||||||
| Provision of sales tax receivable | (303,043 | ) | (171,905 | ) | (1,014,451 | ) | (1,148,329 | ) | |||
| Foreign exchange gain (loss) | (413,922 | ) | 849,711 | (470,485 | ) | (52,264 | ) | ||||
| Loss on disposition of assets | (266,857 | ) | (375,907 | ) | (1,327,449 | ) | (377,525 | ) | |||
| Realized gain (loss) on sale of digital currency | (108,256 | ) | 1,520,910 | (168,249 | ) | 1,741,020 | |||||
| Gain on change in fair value of marketable securities | 101,226 | 162,775 | 26,599 | 77,915 | |||||||
| Net loss before income taxes | (3,935,116 | ) | (381,154 | ) | (9,642,464 | ) | (6,830,506 | ) | |||
| Income tax expense (recovery) | – | – | – | – | |||||||
| Net loss | (3,935,116 | ) | (381,154 | ) | (9,642,464 | ) | (6,830,506 | ) | |||
Other comprehensive income Items that may be reclassified subsequently to income or loss: Revaluation gain (loss) on digital currency |
(4,395,549 |
) |
10,109,144 |
(28,955,335 |
) |
18,597,831 |
|||||
| Cumulative translation adjustment | 1,445 | (6,251 | ) | 958 | (38,472 | ) | |||||
| Comprehensive income | (8,329,220 | ) | 9,721,739 | (38,596,841 | ) | 11,728,853 | |||||
| Basic and diluted loss per share | 18(f) | ($0.02 | ) | ($0.00 | ) | ($0.05 | ) | ($0.03 | ) | ||
| Weighted average number of shares outstanding | |||||||||||
| – basic and diluted | 206,901,497 | 203,242,018 | 206,218,073 | 197,363,999 |
The accompanying notes are integral to these consolidated financial statements
| DMG Blockchain Solutions Inc. Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited) |
||||
| For the 9 months ended June 30, |
||||
| 2026 | 2025 | |||
| OPERATING ACTIVITIES | $ | $ | ||
| Net loss for the period | (9,642,464 | ) | (6,830,506 | ) |
| Non-cash items: |
||||
| Accretion | 3,591 | 11,764 | ||
| Depreciation | 8,946,266 | 13,147,142 | ||
| Share-based payments | 1,661,662 | 2,151,182 | ||
| Unrealized gain on revaluation of digital currency | – | (28,083 | ) | |
| Unrealized foreign exchange (gain) loss | 347,392 | 648 | ||
| Loss on disposition of assets | 1,327,449 | 377,525 | ||
| Gain on fair value change of marketable securities | (26,599 | ) | (77,915 | ) |
| Gain on fair value of investment | – | (37,819 | ) | |
| Provision for sales tax receivable | 1,014,451 | 1,148,329 | ||
| Bad debt recovery | (968 | ) | (6,950 | ) |
| Digital currency related revenue | (22,880,907 | ) | (34,848,860 | ) |
| Digital currency sold | 16,613,625 | 38,794,110 | ||
| Realized loss (gain) on sale of digital currency | 168,249 | (1,675,118 | ) | |
| Lease adjustment | 8,275 | – | ||
| Non-cash interest income | (553,256 | ) | (505,655 | ) |
| Accrued interest expense | 1,071,143 | 1,062,627 | ||
| Changes in non-cash operating working capital: | ||||
| Prepaid expenses and other current assets | 82,945 | 617,227 | ||
| Amounts receivable | (1,344,720 | ) | (102,595 | ) |
| Deferred revenue | 4,891 | 43,795 | ||
| Trade and other payables | (1,259,093 | ) | 1,053,742 | |
| Net cash (used in) provided by operating activities | (4,458,068 | ) | 14,294,590 | |
|
INVESTING ACTIVITIES Purchase of property and equipment |
(1,497,985 |
) |
(10,824,859 |
) |
| Deposits on mining equipment | (167,795 | ) | (8,908,076 | ) |
| Disposition of short-term investments | 2,000,000 | – | ||
| Purchase of short-term investments | (100,000 | ) | (9,116,500 | ) |
| Purchase of long-term investments | (200,000 | ) | – | |
| Disposition of marketable securities | 148,566 | – | ||
| Refund of security deposit | – | 1,792,907 | ||
| Purchase of intangible assets | (1,639,605 | ) | (276,040 | ) |
| Net cash used in investing activities | (1,456,819 | ) | (27,332,568 | ) |
|
FINANCING ACTIVITIES Proceeds from options exercises |
65,395 |
60,913 |
||
| Principal lease payments | (85,881 | ) | (65,320 | ) |
| Tax remittance on net settlement of equity awards | (374,805 | ) | – | |
| Proceeds from secured loan | 7,407,369 | 5,829,013 | ||
| Repayment of loan payable | – | (8,128,048 | ) | |
| Proceeds from issuance of units | – | 17,254,945 | ||
| Share issuance costs | – | (1,570,875 | ) | |
| Net cash provided by financing activities | 7,012,078 | 13,380,628 | ||
| Impact on currency translation on cash and cash equivalents | 9,831 | 181 | ||
| Cash and cash equivalents, change | 1,107,022 | 342,831 | ||
| Cash and cash equivalents, beginning | 1,681,448 | 1,679,060 | ||
| Cash and cash equivalents, ending | 2,788,470 | 2,021,891 | ||
Supplemental cash flow information (Note 25) |
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include hosting a conference call, potential AI opportunities, the Company’s plan to convert its Christina Lake data center into an AI data center, entering into a definitive agreement with a potential tenant to offer 50 megawatts of AI data center colocation services at the Christina Lake facility, the Company’s strategy for growth, the planned monetization of certain product and service offerings, developing and executing on the Company’s products, services and business plans, the launch of products and services, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information.
Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hashrate may materially affect the future performance of DMG’s production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hashrate mining difficulty.
Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forward-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, market and other conditions, volatility in the trading price of the common shares of the Company, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoin; the demand and pricing of AI data centers and usage; security threats, including a loss/theft of DMG’s bitcoin; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products and services, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements. The securities of DMG are considered highly speculative due to the nature of DMG’s business. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.
Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain regulatory approval, the continued availability of capital and financing, equipment and/or infrastructure failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, the impact of viruses and diseases on the Company’s ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin from DMG or its customers, consumer sentiment towards DMG’s products, services, and AI and blockchain technology generally, failure to develop new and innovative products, litigation, lack of demand for the Company’s products and services, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, decrease in the price of Bitcoin, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of or statements made by third parties in respect of the matters discussed above.
How did DMG Blockchain (OTCQB: DMGGF) perform financially in Q3 2026?
DMG Blockchain reported Q3 2026 revenue of $6.4 million and a net loss of $3.9 million. According to DMG, revenue declined versus Q3 2025 due to lower digital currency mining volumes and prices, while expenses decreased but not enough to offset weaker top-line performance.
Why did DMG Blockchain’s Q3 2026 revenue decline compared with Q3 2025?
Q3 2026 revenue of $6.4 million was down from $11.6 million a year earlier. According to DMG, the decrease was mainly driven by a $5.2 million drop in digital currency mining revenue, reflecting both reduced digital currency mined and lower average pricing.
What were DMG Blockchain’s bitcoin production and hashrate in Q3 2026?
DMG produced 61.9 bitcoin and reported hashrate of 1.47 EH/s in Q3 2026. According to DMG, bitcoin received from mining fell 10% quarter-over-quarter and 27% year-over-year, while hashrate declined 14% from Q2 2026 with fleet efficiency at 21.9 J/TH.
What was DMG Blockchain’s cash and digital asset position at June 30, 2026?
DMG held $41.6 million in cash, short-term investments and digital assets at Q3 2026. According to DMG, total current assets were $46.7 million, including $31.6 million of digital currency and $7.2 million of short-term investments, supporting liquidity despite negative operating cash flow.
What strategic AI data center plans did DMG Blockchain outline for Christina Lake?
DMG is progressing plans to transition its Christina Lake facility into an AI data center. According to DMG, it is working toward a definitive agreement on a previously announced 50 MW AI colocation LOI, while advancing design, permitting, vendor engagement, financing exploration and community consultations.
What were DMG Blockchain’s total assets and liabilities as of Q3 2026?
Total assets were $102.3 million and total liabilities $24.9 million at June 30, 2026. According to DMG, assets declined from $132.0 million at September 30, 2025, mainly due to a $22.9 million drop in digital currency fair value and reduced property and equipment.
Source: www.stocktitan.net
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