VANCOUVER, British Columbia, Aug. 25, 2020 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and technology company, has completed its sixth large crypto forensic consulting project of 2020, generating approximately $350,000 in additional revenue.
- $350,000 in consulting revenue generated in 2020 from forensic engagements
- DMG has provided technical reports, investigations and due diligence for law firms and professional audit and accounting firms focused on other publicly traded crypto companies, private companies and Initial Coin Offerings “ICOs”
- DMG’s investigators use DMG’s Blockseer and Walletscore software to provide accurate crypto tracking and labelling as well as forensic consulting services
- DMG’s crypto audit and forensic division is expecting revenue to continue to grow in the coming financial year
While DMG’s primary business is bitcoin mining, as a diversified blockchain company, other revenue streams are continuously being developed. DMG acquired Datient, Inc. in early 2018 specifically for its Blockseer software, which at the time was primarily used by law enforcement. Since this acquisition DMG has continued to improve Blockseer and has also launched Walletscore, a risk assessment AML tool. DMG sells software licenses for these products but also uses them internally to provide crypto analytics and forensic consulting primarily for law, accounting, and audit firms.
DMG has traditionally grown this business through partnerships with professional services firms with whom DMG already has relationships; however, as DMG is looking to continue to grow this business, it is increasing business-to-business marketing efforts. Looking at DMG’s deep expertise in cryptocurrency mining, and data science, we are well poised to expand our crypto consulting practice into the Artificial Intelligence (“AI”) space. Cryptocurrency mining with ASICs and GPUs has similarities to AI processing, and working with our partners in this space, we are beginning consultations on technical questions our business partners have regarding AI companies.
DMG is often asked to provide a technical review of the completeness and reliability of revenue for cryptocurrency miners. Challenges include the newness of this industry, and crypto mining pools that don’t provide complete reporting or completely transparent data that third parties can professionally rely upon. As existing mining pools don’t have the level of transparency and trust needed by North American companies for good governance and independent audit needs, this presents an opportunity for DMG to assist these firms in ensuring that financial reporting is complete and accurate. DMG’s upcoming pool will solve many of these problems for miners using DMG’s pool, compared to others. Our goal is to provide a publicly audited pool, which is truly based in North America and provides reporting that meets today’s compliance needs required by independent third parties and companies seeking a high level of governance and compliance.
DMG’s COO Sheldon Bennett, a Certified Fraud Examiner, leads the forensic division for the Company and provides the following comments, “We recently completed a multi-phased investigation for one of the world’s leading law firms with more than $3B in annual revenue, 36 offices in 23 countries. This particular client is one of the world’s ten largest law firms, as measured by the number of lawyers and revenue. While we can’t get into specifics of the forensic work, we see tremendous opportunity for DMG’s crypto forensic consulting services as allegations of fraud and theft continue to emerge from the recent ICO activity globally. The Company’s forensic revenue may currently be dwarfed by our crypto-mining revenue, but as a diversified company we are excited to see the rapid growth of this division.”
About DMG Blockchain Solutions Inc.
DMG is a diversified cryptocurrency and blockchain platform company that is focused on the two primary opportunities in the sector – mining public blockchains and applying permissioned blockchain technology. DMG focuses on mining bitcoin, providing hosting services for industrial mining clients, earning revenues from block rewards and transaction fees, developing data analytics and forensic software products, working with auditors, law firms, and law enforcement to provide technical expertise. DMG’s permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG’s strategy is to become the domain experts across the business verticals it focuses on. DMG’s management team includes seasoned crypto experts, forensic & financial professionals and blockchain developers with deep relationships throughout the industry, with previous experience working at Bitfury, PwC, EY, Cisco and UBS.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans to increase petahash (PH) by self-mining, price of bitcoin, plans and intentions, other potential transactions, acquisition of customers, product development, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. 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 forwarding 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, 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 bitcoins; security threats, including a loss/theft of DMG’s bitcoins; 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, 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.
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 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 Covid-19 or other viruses and diseases on the Company’s ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, 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.
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.
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