DMG Blockchain (NASDAQ: DMGGF), a Canadian BTC block reward miner, has introduced the growth of its operations following a fundraising marketing campaign that netted the corporate $16 million.
DMG, which has a twin itemizing on the Toronto Inventory Trade and the Frankfurt Inventory Trade, channeled $5 million to buy hydro miners from Bitmain. The miners have an effectivity of 15 J/TH, the corporate revealed in its press release.
“With our latest fundraising that added $16 million to DMG’s money stability, we have now instantly allotted roughly $7 million for the acquisition of capital tools to develop our enterprise,” commented CEO Sheldon Bennett.
“We proceed to hunt the best methods to deploy this new capital to maximise return for shareholders.”
The newest funding comes from the acquisition of 1 MW of hydro miners and 6 1 MW containers, which the corporate expects to have totally put in by the tip of this 12 months. The newly ordered batch will then be put in by February 2025. Mixed, the 2 batches will add 0.4 EH/s to the corporate’s hash fee. This may convey its whole hash fee to 2.1 EH/s.
Along with buying new miners, DMG will improve its funding in its subsidiary, which focuses on the custody of digital assets, to diversify its portfolio. Additional, it plans to make investments in artificial intelligence (AI) infrastructure, following the playbook of each different BTC miner.
With AI being one of the crucial profitable sectors within the tech world, many miners are both wholly pivoting from block reward mining to deal with AI—like Tether-backed Northern Data—or shifting a number of the computing sources to serve AI corporations, as Hive Digital (TSXV: HIVE | OTCQX: HVBTF | FSE: HBF) and Bitdeer (NASDAQ: BTDR) have performed.
In DMG’s case, a latest partnership with the Malahat Nation is essential to its AI ambitions. Malahat is an island area in British Columbia with a robust cultural id.
The partnership, introduced a month in the past, goals to develop 30 MW of AI information facilities on the island. In his feedback, Bennett noted that the info facilities are “not solely advancing important infrastructure but additionally empowering Indigenous communities to take a number one function in the way forward for expertise.”
DMG received’t be the final BTC block reward miner to explore better fortunes with AI. All the sector is constructed on the idea that BTC will all the time rise since the price of mining has outpaced the asset’s worth lately. The miners have accumulated debt to extend their hash fee through the years as they stockpiled their BTC, ready for the value to skyrocket so they may money in. Nevertheless, within the bear market, when collectors got here calling, most miners couldn’t cowl their positions, and a few business giants like Core Scientific (NASDAQ: CORZW) needed to file for chapter.
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