Roth Capital Partners Darren Aftahi has maintained its “purchase” rating and a Kurdish $ 0.85 goal on DMG Blockchain solutions ((DMG Blockchain Solutions Quote, Graph) In a profit note on May 23, noting the growing momentum behind the company’s transformation into artificial intelligence and high -performance computing despite the mixed quarter and covered predictions.
Solutions DMG Blockchain Solutions, based in Vancouver, is a Canadian data center and Blockchain platform that focuses on bitcoin mining and relevant services. It runs a neutral carbon facility in Lake Christina, BC. It provides comprehensive software tools within the Core+ platform, including custody services, mining group and other encryption products for institutions. The company follows the fiscal year in September.
DMGI moves forward as it turns towards artificial intelligence and high -performance computing, focusing in the near -term on the publication of pre -made data centers 2 megawatts to accelerate the start of contracts in the long term. While the talks are still early, attention from government data mandate, and Canadian agencies suggest what Aftahi called “solid pipeline”.
The company also has financing options through bitcoin sales, partnerships or its Malahat project. The decline in the first subject of the anchor can increase the investor’s confidence. Meanwhile, Core+ and Systemic Trust is expected to grow in the second half of 2025, helping DMGI to expand its work beyond Bitcoin.
“It seems that the entry of DMGI to the AI/HPC infrastructure is likely to start increasingly with smaller publication (as shown with its pre -units of 2 megawatts) because it builds credibility and deepens government relations from wide -ranging publication over time,” said Aftahi. “These standard designs allow for publication faster and serve as an infrastructure for the bridge while DMGI follows long-term contracts and align sovereignty in Canada. Whether it is through the Amnesty International Cloud (completely integrated) or traditional HPC (still a customer owned property, to be a long time, discussing Sover, Sover, Sover, Sover-THE The Soovee, Sovere, Sovere-Sovere, ”
Aftahi said that flexible dmg financing options, such as bitcoin sales, project financing, or support from its Malahat partnership, can help reduce the risk of implementation if the infiltration deal is secured and the company is placed in a strong position to fulfill the small to medium -to -medium infrastructure title.
He said: “We believe that once DMGI secures a long -term tenant, it can open new revenue flows and stimulate the re -classification until post -exposure BTC.” “We also expect to see Core+ and Systemic Trust is more dependent by Cy25.”
Aftahi said that DMG’s financial results were mixed, as revenues reach about 3 % of expectations, but Ebitda modification is 2 % lower. The company extracted nearly 91 BTC, a decrease of 6.5 % from the previous quarter, while the retail rate of 8.3 %, the network growth match. The energy costs of a mine increased to about $ 55,000 per BTC – by 17 % – to an increase of 11 % in the total energy costs, prompting the total margins to a decrease of about 4 degrees Celsius to 44.9 %. DMGI also faced three days of underestimating in March after moving half of its ability to uninterrupted power. The operating expenses were 2 % less, but Core+ losses and other revenue sources rose to $ 0.5 million as the scope of this part of the work continued to expand. The average Ebitda came at about $ 2.2 million. The company ended the quarter of about $ 61.2 million in cash, BTC and investments, and its operations used $ 0.9 million.
It is expected that the DMCOIN retail rate will operate to the short -term full capacity as the company adjusts its old equipment during the hottest months, but it sees that efficiency improves as it reaches 3 EH/S by the end of the calendar 2025. However, it takes a little more careful view.
Aftahi believes that DMG will generate $ 1.05 million from modified Ebitda at $ 42.89 million of revenue for the fiscal year 2025, down from previous estimates of $ 1.52 million in EBITDA and $ 43.38 million in revenue. For the 2026 fiscal year, these numbers are expected to improve to $ 1.69 million in EBITDA at $ 53.67 million of revenue, and a large declining review of previous $ 4.00 million in EBITDA and $ 59.92 million in revenue.
Aftahi believes that DMGI is likely to launch AI and HPC contracts in smaller stages, starting from the 2MW mobile center. However, due to the uncertainty about it when the OffTake deal and financial terms are signed, it is now warned and is now expected to start HPC revenues in early 2027.
“These changes reduce revenues/profits before benefits, taxes, depreciation and consumption on the front.” “Was DMGI to reach the HPC/AI agreement, can help portable databases to accelerate the transfer time, which we believe can accelerate the timeline to generate HPC revenues in our model.”
-30-
