VANCOUVER, British Columbia, Feb. 25, 2026 – DMG Blockchain Solutions Inc., a vertically integrated blockchain and data center technology firm, has announced its unaudited financial results for the first quarter of 2026. The company, trading under TSX-V: DMGI, OTCQB US: DMGGF, and FRANKFURT: 6AX, reported key figures in Canadian dollars, with a focus on strategic shifts amid evolving market conditions.
Q1 2026 Financial Highlights
The financial results reveal a mixed performance for DMG Blockchain. Revenue for the quarter stood at $11.2 million, marking a 2% decrease from $11.4 million in the fourth quarter of 2025 and a 4% drop from $11.6 million in the first quarter of 2025. Bitcoin mining output totaled 69 bitcoin, down from 72 bitcoin in Q4 2025 and 97 bitcoin in Q1 2025, reflecting challenges in mining economics.
Despite the declines, the company achieved a hashrate of 1.76 EH/s, representing a 10% increase from the previous quarter, with fleet efficiency maintained at 22.0 J/T. Cash, short-term investments, and digital assets amounted to $58.6 million at the end of Q1 2026, a 10% decrease from $65.2 million at year-end 2025. Total assets were reported at $122.0 million, down 8% from $132.0 million, while net income showed a loss of $2.2 million or -$0.01 per share.
Strategic Initiatives and CEO Commentary
Sheldon Bennett, CEO of DMG Blockchain, emphasized the company's commitment to its dual strategic pillars: Core data center operations and Core+ Digital Asset Financial Services. "In Q1 2026, we continued to execute on our two strategic pillars," Bennett stated. "We are highly focused on converting our Christina Lake facility into an AI data center capable of providing at least 50 megawatts of critical IT load to fill an industry gap in available capacity."
He added that the company is simultaneously building out its Digital Asset Financial Services, with Systemic Trust serving as a cornerstone for future revenue growth. DMG is actively pursuing AI off-takers and potential government partnerships, aiming to deliver lasting value to shareholders through these initiatives.
Detailed Financial Review
A closer examination of the financials shows that revenue decreased from $11.6 million in Q1 fiscal 2025 to $11.2 million in Q1 fiscal 2026. This decline is primarily attributed to a $1.8 million reduction in digital currency mining revenues, partially offset by $1.5 million in other revenue from an energy efficiency incentive. The lower mining revenue resulted from less favorable average Bitcoin economics during the quarter compared to the previous year.
Operating and maintenance expenses for Q1 fiscal 2026 remained steady at $6.7 million, consistent with Q1 fiscal 2025. General and administrative costs increased slightly to $1.9 million, up from $1.8 million, driven by higher consulting fees as the company invests in its AI strategy. Research costs held stable at $0.6 million.
Depreciation for Q1 fiscal 2026 was $3.5 million, down from $4.3 million in Q1 fiscal 2025. This $0.8 million decrease is largely due to the declining balance depreciation method, which leads to higher charges immediately after asset activation. Significant additions in fiscal 2023 and early fiscal 2024 contributed to the higher depreciation expense in the prior year period.
Outlook and Future Prospects
As DMG Blockchain navigates the dynamic blockchain and AI landscapes, the company's focus on transforming its Christina Lake facility into an AI data center underscores a strategic pivot towards high-demand technology sectors. With ongoing efforts in digital asset services and potential partnerships, DMG aims to bolster its market position and drive future growth, despite current financial headwinds.
Investors and stakeholders are encouraged to review the full unaudited financial statements and management's discussion and analysis for a comprehensive assessment of the company's performance and risk factors, available through regulatory filings.
