One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
DMG Blockchain Solutions Inc.
DMGGF · OQB · Financial Services · Capital Markets
Current price
$0.37
52-week range
$0.15 - $0.52
Market cap
$77.05M
Balance sheet
Distressed
-7.25x Concerning
Net debt $11.87M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 39.6% last year.
- Risk Operating margin compressed from 3.5% to -40.2% over 3 years.
- Risk Return on equity was -13.7% last year — the company lost money on shareholders' equity.
What this company does
DMG Blockchain Solutions Inc.
DMG Blockchain Solutions makes most of its money by using powerful computers to "mine" for new bitcoin. The company also sells specialized software and data center services, aiming to build a complete ecosystem (a network of related products and services that work together) for others in the cryptocurrency and artificial intelligence fields. This matters because the company is active in two major technology trends while also developing tools to make the crypto industry more secure and environmentally friendly.
How the company got here
Founded in 2011, DMG Blockchain Solutions started as a company focused on the emerging world of cryptocurrencies. It established itself by 'mining' for Bitcoin, which is the process of using powerful computers to solve complex math problems to verify transactions and earn new Bitcoin. A key turning point was its decision to become a 'vertically integrated' company, meaning it owns and controls multiple steps of its process, from its own data centers to developing its own software. This strategy allowed it to manage costs and create a suite of products. More recently, the company has begun a significant shift, leveraging its data center infrastructure to expand into the rapidly growing field of Artificial Intelligence (AI) computing.
What it actually does
DMG Blockchain Solutions is a technology company that operates in two main areas: digital assets (like Bitcoin) and high-performance computing for AI. Think of them as providing the digital plumbing and real estate for the internet's next phase. They run a large data center with access to a lot of power, which is essential for both mining Bitcoin and training AI models. On top of this physical infrastructure, they develop and sell software that makes using and managing digital assets safer and more efficient for large-scale clients.
Core (Data Center Infrastructure)
This is the physical foundation of the company and includes its Bitcoin mining operations and its newer focus on AI and colocation services. In simple terms, they own and operate a large facility filled with powerful computers. A major part of this business is using these computers to mine Bitcoin, which generates revenue for the company. They are also converting a large portion of this facility to offer 'colocation' services for AI, which means they rent out space and power to other companies that need to run powerful AI computer systems. This segment is the company's primary revenue driver.
Core+ (Software and Services)
This part of the business develops and sells software and services that support the use of digital assets. For example, they have a platform called Blockseer which includes tools to track Bitcoin transactions for security and compliance, helping to identify and avoid transactions with 'bad actors'. They also offer 'custody' services through Systemic Trust, which is like a high-security vault for financial institutions to store their digital assets safely. This segment is a smaller but important part of the company's strategy to provide a complete ecosystem for its clients.
What management is betting on now
The company's biggest bet is on the transition to becoming a major provider of infrastructure for Artificial Intelligence. Management is converting its main data center from primarily mining Bitcoin to hosting powerful computers for AI workloads, a move driven by the massive demand for AI computing power. They are also focused on 'sovereign AI,' which means providing this infrastructure for Canadian companies and government entities, positioning themselves as a key domestic player in this critical technology sector. This strategic shift involves significant investment and partnerships to build out a world-class AI data center.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $0.37
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $11.9M. Interest coverage -7.2x.
Net debt
$11.87M
Interest coverage
-7.25x
DMG Blockchain Solutions Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
DMGGF
BASELINE
DMG Blockchain Solutions Inc.
Total debt $14.01M Interest coverage -7.25x This is the baseline the peer rows are being compared against.
Total debt $877.80M Interest coverage -14.22x Neither company has much profit cushion over interest right now.
Total debt $2.47B Interest coverage -16.99x Neither company has much profit cushion over interest right now.
Total debt $1.79B Interest coverage -9.44x Neither company has much profit cushion over interest right now.
Total debt $7.67B Interest coverage -3.24x Neither company has much profit cushion over interest right now.
Total debt $5.59B Interest coverage -9.23x Neither company has much profit cushion over interest right now.
What you should know
The case for and against DMGGF
1 Reward
2 Risks
Rewards
-
Revenue grew 39.6% last year.
Risks
-
Operating margin compressed from 3.5% to -40.2% over 3 years.
-
Return on equity was -13.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
1.40x
P/S
2.12x
EV/EBITDA
21.39x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
36.2%
Operating margin
-40.2%
Net margin
-36.0%
ROE
-13.7%
ROA
-4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.88x
Quick ratio
0.31x
Total debt
$14.01M
Total cash
$2.14M
Growth
How the business has been compounding
Revenue TTM
$25.67M
Revenue 5Y CAGR
3.1%
EPS TTM
-0.05
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$11.45M
Free CF TTM
$-3.14M
FCF margin
-12.2%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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