DMG Blockchain Solutions (DMGI) AI Stock Analysis

• Market Cap: C$71.88M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.02
• Revenue Growth: 39.64%
• EPS Growth: -70.96%
• Country: CA
• Employees: 16
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.01
• Shares Outstanding: 202,490,800
• 10 Day Avg. Volume: 1,801,762
• 30 Day Avg. Volume: 1,095,023
• PEG Ratio: -0.14
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.02
• P/FCF Ratio: -29.24
• 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$0.75
• Price Target Upside: 120.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$0.35 ▲(3.82% Upside)

The score is held back primarily by weak financial performance (loss-making margins and deteriorating free cash flow despite revenue growth), which carries the highest weight. Technicals are moderately supportive with price strength above key moving averages, but momentum looks stretched. Valuation is constrained by a negative P/E, while the earnings call adds a modest offset through stronger asset holdings and strategic initiatives, tempered by delayed revenue and operational challenges.

Positive Factors

Strategic pivot to AI data centers

Converting Christina Lake into an AI colocation data center is a durable strategic shift away from cyclical crypto mining toward recurring, higher-margin infrastructure services. It diversifies revenue, builds long-term customer relationships, and leverages existing power assets for stable cash generation over years.

Strong liquid asset base

A $61.8M balance of cash, short-term investments and Bitcoin provides significant runway for capital projects and R&D without immediate dilution. This liquidity supports funding of AI conversion, miner deployments and strategic partnerships, improving resilience through multi-quarter industry volatility.

Conservative capital structure

Very low leverage and a high equity ratio reduce financial risk and increase strategic optionality. This conservative balance sheet supports capital-intensive initiatives (mining, AI infra) and enables non-dilutive growth, making the company less vulnerable to interest rate or credit shocks over the medium term.

Negative Factors

Negative profitability margins

Sustained negative margins indicate the business is not converting revenues into lasting profits, threatening reinvestment capacity. Unless gross margin and operating efficiencies improve, ongoing losses will pressure cash, constrain scaling of AI and services, and limit shareholder returns over quarters.

Weak free cash flow trends

A sharp drop in free cash flow and a negative FCF-to-net-income ratio signal difficulty converting earnings into distributable cash. This undermines funding for capital projects and increases reliance on asset sales or equity raises, weakening execution of multi-quarter strategies like AI infra deployment.

Delayed revenue from Systemic Trust

Postponed onboarding and revenue from Systemic Trust reduces near-term visibility into software and services growth. Delay in a strategic product weakens anticipated diversification from mining, compresses projected recurring revenue, and defers realization of scale benefits from the software roadmap.

DMG Blockchain Solutions Business Overview & Revenue Model

Company Description

DMG Blockchain Solutions Inc. operates as a blockchain and cryptocurrency company in Canada. The company manages, operates, and develops digital solutions to monetize the blockchain ecosystem. It also offers transaction verification; co-location hosting; data center optimization; and high-performance computing services. In addition, the company provides infrastructure consulting in various fields, including location and power infrastructure review, air flow and cooling contact, high and low voltage power design and engineering, and facility power distribution design and engineering. Further, the company develops and licenses proprietary blockchain and cryptocurrency software, comprising Mining Pool, an audited mining pool; WalletScore, a blockchain audit and analytics platform; Mine Manager, an optimization software for mining facilities; Blockseer Intelligence, an analytics tool that enables the tracking of cryptocurrency on Bitcoin and Ethereum blockchains; Blockseer Breeze, an enterprise-grade custody solution to securely manage digital assets; and BlockSeer Freeze, a software product that watches BTC wallets and provides early notification of transactions on the blockchain network. Additionally, it offers forensic services. The company was incorporated in 2011 and is headquartered in Grand Forks, Canada.

How the Company Makes Money

DMG Blockchain Solutions generates revenue through multiple streams. Primarily, the company earns money by operating cryptocurrency mining facilities, where it mines Bitcoin and other cryptocurrencies, selling the mined coins on the open market. Additionally, DMGI offers blockchain technology services, including consulting and software development for businesses looking to integrate blockchain solutions. The company may also generate revenue through partnerships with other technology firms and financial institutions, enabling them to leverage DMGI's expertise in blockchain. Furthermore, DMG may benefit from transaction fees associated with the use of its blockchain infrastructure and services.

DMG Blockchain Solutions Financial Statement Overview

Summary

DMG Blockchain Solutions shows revenue growth but faces significant profitability challenges. The balance sheet is strong with low leverage, but negative return on equity and cash flow issues are concerning. Improvement in cost management and profitability is needed.

Income Statement

DMG Blockchain Solutions shows a mixed performance in its income statement. The company has managed to grow its revenue by 13.27% in the latest year, indicating positive sales momentum. However, profitability remains a significant issue, with a negative net profit margin of -21.69% and a negative EBIT margin of -16.32%. The gross profit margin is also low at 4.81%, suggesting challenges in cost management. Despite a positive EBITDA margin of 20.43%, the overall profitability metrics indicate financial instability.

Balance Sheet

The balance sheet of DMG Blockchain Solutions reflects a relatively stable financial position with a low debt-to-equity ratio of 0.10, indicating conservative leverage. However, the return on equity is negative at -8.96%, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at 86.77%, suggesting a strong equity base relative to total assets, which is a positive sign of financial health.

Cash Flow

Cash flow analysis reveals some concerns for DMG Blockchain Solutions. The company experienced a decline in free cash flow growth by -34.54%, and the free cash flow to net income ratio is negative at -0.20, indicating cash flow challenges. The operating cash flow to net income ratio is 0.93, showing that operating cash flow is not fully covering net income, which could be a risk if profitability does not improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.34M	47.34M	33.90M	27.94M	43.24M	10.22M
Gross Profit	2.27M	2.27M	32.42M	11.14M	10.38M	8.59M
EBITDA	8.61M	9.67M	14.49M	5.60M	2.87M	-7.18M
Net Income	-10.27M	-10.27M	-5.23M	-16.46M	-16.98M	-9.55M
Balance Sheet
Total Assets	132.03M	132.03M	103.87M	82.59M	96.90M	111.13M
Cash, Cash Equivalents and Short-Term Investments	65.72M	65.72M	2.00M	2.18M	1.65M	20.17M
Total Debt	11.07M	11.07M	14.02M	1.36M	516.30K	538.23K
Total Liabilities	17.44M	17.44M	19.21M	5.61M	5.47M	5.81M
Stockholders Equity	114.59M	114.59M	84.66M	76.98M	91.43M	105.31M
Cash Flow
Free Cash Flow	-3.54M	-3.26M	-12.21M	-275.88K	-22.32M	-74.29M
Operating Cash Flow	16.19M	16.19M	8.21M	4.87M	15.19M	-29.83M
Investing Cash Flow	-27.35M	-27.35M	-21.20M	-5.30M	-33.50M	-45.45M
Financing Cash Flow	11.17M	11.17M	12.88M	980.21K	-125.72K	93.70M

DMG Blockchain Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.30, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUT	67 Neutral	C$8.76B	31.86	18.75%	―	7.46%	-4.30%
GLXY	51 Neutral	C$15.31B	―	-2.77%	―	―	-121.84%
DMGI	49 Neutral	C$71.88M	-6.47	-10.10%	―	39.64%	-70.96%
NDA	49 Neutral	C$144.96M	382.76	0.60%	―	-21.21%	-84.82%
BITF	46 Neutral	C$2.31B	-11.99	-17.06%	―	51.69%	28.00%
CBIT	45 Neutral	C$29.90M	-7.82	-13.56%	―	40.83%	-123.25%

DMG Blockchain Solutions Corporate Events

DMG Blockchain Posts Higher Bitcoin Holdings as It Advances AI Data Center Strategy

DMG Blockchain Solutions reported preliminary December 2025 operational results showing a slight increase in bitcoin mined to 23 BTC and a higher bitcoin treasury of 403 BTC, despite a marginal dip in hashrate to 1.77 EH/s, as the company continues to limit liquidations to rebuild its bitcoin holdings. Management highlighted ongoing talks to convert the Christina Lake facility into a large-scale AI data center and to build an AI colocation business in partnership with government, enterprises and Indigenous communities, while also granting new stock options and RSUs to employees and directors to align long-term incentives with growth objectives and expand revenue from digital asset custody and related financial services.

The most recent analyst rating on (TSE:DMGI) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Boosts Revenue and Cash as It Pivots Toward AI Infrastructure

DMG Blockchain Solutions reported a 40% jump in fiscal 2025 revenue to $47.3 million, driven primarily by stronger bitcoin prices and expanded mining operations that lifted its average hashrate to 1.70 EH/s and significantly improved operating cash flow to $16.2 million. Year-end cash, short-term investments and digital assets rose 81% to $65.2 million and total assets climbed to $132 million, but the company’s net loss widened to $10.3 million, largely due to accounting treatment of unrealized digital asset gains, which boosted comprehensive income instead of reducing reported net loss. Management highlighted that the stronger balance sheet and nearly doubled cash generation position DMG to withstand current crypto market weakness while it pivots into AI infrastructure and scales its regulated digital asset custody business, which has recently achieved qualified custodian status and SOC 2 Type II certification, setting up additional revenue streams in the coming periods.

The most recent analyst rating on (TSE:DMGI) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain to Release Q4 and Full-Year 2025 Financial Results

DMG Blockchain Solutions Inc. has announced the release of its audited financial results for the fourth quarter and full fiscal year 2025 on December 18 before the market opens. The company will also hold a conference call to provide further insights into the results and its corporate strategy, emphasizing transparency and engagement with its stakeholders. The announcement highlights DMG’s continued efforts to bolster its position in the blockchain industry, showcasing its focus on carbon-neutral Bitcoin operations and regulatory compliance, which could benefit investors and industry partners.

The most recent analyst rating on (TSE:DMGI) stock is a Hold with a C$0.50 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 to AI Development at Christina Lake

DMG Blockchain Solutions has announced a strategic update to its AI development at the Christina Lake site, transitioning from Bitcoin mining to a 50-megawatt AI data center in collaboration with partners. This move aims to capitalize on Canada’s renewable energy resources and proximity to population centers, enhancing DMG’s market position. The company also reported preliminary operational results for November 2025, with a slight increase in hashrate and Bitcoin balance, indicating a focus on optimizing operations while maintaining Bitcoin mining as part of its future strategy.

The most recent analyst rating on (TSE:DMGI) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Expands to US with New Data Center Acquisition

DMG Blockchain Solutions has announced the purchase of a 27,600 square foot building in Boardman, Oregon, marking its first US-based data center. This strategic move positions DMG in a data center hub, enhancing its connectivity and power access, and aligns with its long-term expansion strategy. The company plans to retrofit the building for high-performance computing, with potential for further development on the site. This expansion complements DMG’s focus on developing AI infrastructure in Canada, while also tapping into larger opportunities in the US market. In October 2025, DMG’s operational results showed a stable Bitcoin mining output and an increase in hashrate, reflecting its strategic growth and resource management.

The most recent analyst rating on (TSE:DMGI) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.

DMG Blockchain Partners with Malahat Nation for Indigenous-Led Clean Energy Initiative

DMG Blockchain Solutions has announced a new partnership with Malahat Nation to establish a regulated utility for clean energy and AI infrastructure on Malahat lands. This collaboration aims to create Canada’s first Indigenous-led AI data center campus, providing sustainable power and fostering economic development, job creation, and cultural investments for the Malahat community. The initiative reflects a shared vision of combining Indigenous economic leadership with DMG’s expertise in power infrastructure and computing, marking a significant step towards Indigenous energy sovereignty.

The most recent analyst rating on (TSE:DMGI) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DMG Blockchain Solutions stock, see the TSE:DMGI Stock Forecast page.