DMG Blockchain Solutions (DMGI) AI Stock Analysis

• Market Cap: C$57.92M
• Dividend Yield: N/A
• Average Volume (3M): 166.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 17.11%
• EPS Growth: -26125.00%
• Country: CA
• Employees: 16
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): -0.02
• Shares Outstanding: 203,242,020
• 10 Day Avg. Volume: 147,677
• 30 Day Avg. Volume: 166,048
• PEG Ratio: 0.01
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.00
• Price Target Upside: 256.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: C$0.50 ▲(78.57%Upside)

DMG Blockchain Solutions' overall stock score is primarily tempered by its financial performance challenges, notably in achieving profitability and positive cash flows. While technical analysis indicates some positive momentum, valuation metrics are weak due to negative earnings. Strategic initiatives in AI and software provide potential growth avenues, but financial risks continue to weigh on the stock's attractiveness.

Positive Factors

Hashrate Expansion

DMG's network grew in line with revenue, up 8% from December to an average of 1.76Eh/s.

Regulatory Approval

DMG achieved SOC 2 Type II certification, paving the way for near-term regulatory approval and initial client onboarding for its digital asset ecosystem.

Strategic Partnerships

DMG recently announced a strategic partnership with the Malahat band in British Columbia focused on an initial 30MW project.

Negative Factors

Market Skepticism

Analysts remain skeptical regarding the sustainability of a premium for differentiated bitcoin.

Project Risk

While partnering with indigenous bands in Canada, there's inherent project risk despite leveraging government programs.

DMG Blockchain Solutions Business Overview & Revenue Model

Company Description

DMG Blockchain Solutions (DMGI) is a diversified cryptocurrency and blockchain platform company that focuses on various facets of the blockchain ecosystem. The company operates in sectors including digital asset mining, blockchain forensics, and blockchain technology development. DMGI aims to harness the potential of blockchain technology to deliver solutions for industries such as financial services, supply chain management, and data analytics, providing innovative tools and services to enhance the efficiency and transparency of these sectors.

How the Company Makes Money

DMG Blockchain Solutions generates revenue through several key streams. Firstly, the company earns money from its large-scale cryptocurrency mining operations, which involve solving complex mathematical problems to validate transactions on the blockchain, and in return, receiving cryptocurrency rewards. Secondly, DMGI offers blockchain forensics services, helping clients analyze blockchain data to prevent fraud and ensure regulatory compliance. Additionally, the company develops and licenses proprietary blockchain software and technology solutions to businesses across various industries. Partnerships with other technology and financial firms also play a crucial role in expanding its service offerings and market reach, contributing to its overall revenue.

DMG Blockchain Solutions Financial Statement Overview

Summary

DMG Blockchain Solutions shows financial stability with a solid equity base, but profitability challenges due to negative EBIT and net profit margins are concerning. The company needs to improve cash flow sustainability amidst fluctuating revenue growth.

Income Statement

DMG Blockchain Solutions exhibits a volatile revenue growth trajectory, with recent periods showing a decline in revenue. The gross profit margin is positive, yet the company struggles with profitability as evidenced by negative EBIT and net profit margins. The EBITDA margin indicates some operational efficiency, but overall profitability remains a concern.

Balance Sheet

The company maintains a solid equity base with a favorable equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased, suggesting rising leverage. Return on equity is negative due to consistent net losses, highlighting profitability challenges.

Cash Flow

Cash flow analysis reveals negative free cash flows, indicating cash outflows exceed inflows from operations and investments. The operating cash flow to net income ratio is positive, suggesting operational cash generation despite net losses, but free cash flow remains a concern for long-term sustainability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
35.84M	33.90M	27.94M	43.24M	10.22M	7.40M
	Gross Profit
16.03M	32.42M	11.14M	41.96M	1.61M	-972.50K
	EBIT
-15.05M	-14.58M	-18.59M	1.62M	-8.12M	-2.93M
	EBITDA
4.99M	15.23M	5.60M	2.87M	-7.18M	-304.99K
	Net Income Common Stockholders
-15.31M	-5.23M	-16.46M	-16.98M	-9.55M	-2.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.63M	2.00M	2.18M	1.65M	20.17M	1.07M
	Total Assets
137.13M	103.87M	82.59M	96.90M	111.13M	21.51M
	Total Debt
20.10M	14.02M	1.36M	516.30K	538.23K	2.42M
	Net Debt
15.83M	12.34M	-425.76K	-731.21K	-19.15M	1.35M
	Total Liabilities
23.86M	19.21M	5.61M	5.47M	5.81M	6.59M
	Stockholders Equity
113.27M	84.66M	76.98M	91.43M	105.31M	17.23M
Cash Flow		Free Cash Flow
-25.90M	-12.21M	-275.88K	-22.32M	-74.53M	541.91K
	Operating Cash Flow
1.73M	8.21M	4.87M	15.19M	-29.83M	1.37M
	Investing Cash Flow
-32.87M	-21.20M	-5.30M	-33.50M	-45.69M	2.13M
	Financing Cash Flow
33.21M	12.88M	980.21K	-125.72K	93.94M	-3.73M

DMG Blockchain Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DMGI, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.25, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DMGI.

DMG Blockchain Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
NDA	56 Neutral	C$186.82M	56.54	5.61%	―	-9.36%	―
DMGI	55 Neutral	C$57.92M	―	-18.42%	―	17.11%	-26125.00%
CBIT	52 Neutral	C$42.81M	1.91	-9.57%	―	74.11%	―
DEFI	52 Neutral	C$51.06M	9.33	42.14%	―	109.65%	-22.41%
HIVE	50 Neutral	$492.24M	―	-2.15%	―	27.99%	90.99%

DMG Blockchain Solutions Corporate Events

DMG Blockchain Solutions Reports Stable May Operations Amid Strategic Shifts

DMG Blockchain Solutions reported its preliminary operational results for May 2025, noting the mining of 31 Bitcoin and a hashrate of 1.89 EH/s, slightly down from April. Despite facing seasonal and infrastructure challenges, the company maintained a stable Bitcoin balance and continued to sell Bitcoin to fund operations and reduce debt. DMG is also progressing in securing colocation and off-take agreements for AI infrastructure and expanding its client base for its digital asset custody services, indicating a strategic shift towards AI and digital asset management.

The most recent analyst rating on (TSE:DMGI) stock is a Buy with a C$0.85 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Solutions Advances Carbon-Neutral Bitcoin Transactions

DMG Blockchain Solutions Inc. has announced that its subsidiary, Systemic Trust Company, can now send Bitcoin in a regulatory-compliant and carbon-neutral manner, utilizing Fireblocks’ custody solution and Terra Pool, the world’s first carbon-neutral Bitcoin mining pool. This development marks a significant milestone in DMG’s efforts to establish a carbon-neutral Bitcoin ecosystem, providing financial institutions with a sustainable option for Bitcoin transactions and enhancing its collaboration with Fireblocks.

The most recent analyst rating on (TSE:DMGI) stock is a Buy with a C$0.85 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Solutions Sees Revenue Growth Amidst Strategic Expansions

DMG Blockchain Solutions reported a 9% increase in revenue to $12.6 million for Q2 2025, despite a decrease in bitcoin mined and a net loss of $3.3 million. The company is advancing its AI strategy and expanding its digital asset custody platform, Systemic Trust, to enhance customer adoption and revenue growth.

The most recent analyst rating on (TSE:DMGI) stock is a Buy with a C$0.85 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Solutions Schedules Q2 2025 Earnings Release and Conference Call

DMG Blockchain Solutions Inc. has announced the release date for its second quarter 2025 financial results, set for May 21, 2025, after market close. The company will hold a conference call on May 22, 2025, to discuss these results and provide a corporate update, which could impact its operational strategies and stakeholder interests.

The most recent analyst rating on (TSE:DMGI) stock is a Buy with a C$0.85 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Solutions Shifts Focus Towards AI with April Operational Results

DMG Blockchain Solutions reported its preliminary operational results for April 2025, highlighting stable mining operations with 30 BTC mined and an increased hashrate of 1.93 EH/s. The company reduced its Bitcoin holdings to fund AI data center infrastructure and make a loan paydown, marking a strategic shift towards AI and deleveraging its balance sheet. This move aligns with DMG’s focus on high-value government and enterprise users seeking sovereign AI solutions in Canada.

DMG Blockchain Expands AI Infrastructure with New Data Center Purchase

DMG Blockchain Solutions Inc. has announced the purchase of two megawatts of prefabricated data center infrastructure, marking a significant step in its AI infrastructure strategy. This acquisition is expected to provide DMG with a competitive advantage in the Canadian AI market, as it aims to engage with government and enterprise entities for AI computing off-take agreements. The company is also progressing in its hydro mining capacity and has made leadership changes in its subsidiary, Systemic Trust Company.

DMG Blockchain Solutions Reports March 2025 Operational Results and Strategic Initiatives

DMG Blockchain Solutions announced its preliminary operational results for March 2025, highlighting an increase in Bitcoin mined and hashrate compared to February. Despite a slight delay in reaching its 2.1 EH/s hashrate goal due to shipment issues, DMG is optimistic about completing its expansion soon. The company is also focused on securing AI off-take agreements and attracting new clients to enhance its carbon-neutral Bitcoin ecosystem. Additionally, DMG granted stock options and RSUs to align employee incentives with the company’s growth strategy.