DMG Blockchain Solutions (DMGGF) Signs 7 – Megawatt Bitcoin Mining Contract

634
DMG Blockchain Solutions (DMGGF) Signs 7 - Megawatt Bitcoin Mining Contract

DMG Blockchain Solutions (DMGGF), a cryptocurrency management company has entered into a Mining as a Service (MaaS) contract with a major blockchain industry company. The contract would allow DMG to host Bitcoin mining capacity of around 7 megawatts for its new customer.

According to the contract, the new client will pay an additional hosting fee for DMG’s 4,200 newer-model Bitcoin miners. The contract is signed for the duration of three months and has an option of auto-renewal after expiry, as per the information available on the signing of the contract.

Commenting on the deal, Dan Reitzik, the CEO of DMG Blockchains said that the company is overwhelmed to have energized their new substations. The company has added a new client to its portfolio and is working out its way through the DMG’s MaaS growth strategy. The company is cautious to safe capital in the first year as a public company by focusing on the Maas hosting model.

Recently, a drop in Bitcoin network computing power has been reported. However, DMG Blockchain has claimed of having profitable mining capacity at the current Bitcoin pricing, as per its operational basis.

Reitzik said that the position which the company enjoys highlights its readiness to fill in any gap with new generation mining equipment that is expected in the year to come. Next year, the company expect to book additional cash flow generation for DMG and its clients.

Understanding Maas

MaaS generally stands for Mining as a Service. Just like precious minerals, Cryptocurrency Bitcoin is finite which provides many opportunities to individuals as well as companies providing MaaS. DMG is a provider of MaaS solutions to investors as well as companies with limited skills to mine Bitcoin at an industrial scale.

The solutions thus offered by the company allow the customers to arrange experts or skilled workers who can manage the process on their own. The company came up with the solutions with the hope to enable Bitcoin miners to make a certain profit with advanced expertise and output by the dedicated team of DMG of seasoned Bitcoin miners. The company is focusing on establishing a steady flow of profits as well as revenue without having to rely on the price volatility of Bitcoin.

Enhancing Industrial-Scale Mining

The contract is in line with the company’s plan to expand in industrial-scale mining. The contract would see an addition of extra 1,850 miners which would make up to around 2.5 megawatts. In addition, the company expects older-model Bitcoin miners (1650 units) from the previous MaaS contract to restart their operation after having terminated it for about 90 days.

Besides the MaaS contract, DMG enjoys a great reputation in the market as various firms look for opportunities to diversify their portfolio with professional mining services. As per the company’s stock reports, it shares traded at 17 cents following a 6% increase in value. It is hoped that the Bitcoin market may soon pick up the momentum that would add to the profitability of DMG Blockchain solutions.

Disclaimer

Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.