DMG Blockchain Solutions Inc. (OTC: DMGGF) Stock Surges After MOU to Purchase 10-Megawatt Data Center Infrastructure

The blockchain sector continues to be one of the hottest ones at this point, and if you are looking to track companies from the sector, you may consider taking a look into DMG Blockchain Solutions Inc. (OTC: DMGGF). The vertically integrated data center and blockchain technology firm was in focus yesterday after it made a key new announcement.

The Announcement

DMG Blockchain Solutions hit the news wires yesterday after it announced that it had inked a Memorandum of Understanding (MoU) with a counterparty. The identity of the counterparty in question remained undisclosed. The MoU had been signed with regard to the acquisition of the infrastructure necessary for the acquisition of a prefabricated 10 megawatt air-cooled data center that met the specifications of the SCIF (Sensitive Compartmented Information Facility).

Key Details

In the news release, it was further noted that DMG Blockchain Solutions and the counterparty had also decided to work on the signing of a definitive agreement in the upcoming 90 days. During the period up until the signing of the definitive agreement, the company would work on the due diligence process. The agreement could eventually prove to be a major new development for the company and propel it in new avenues.

CEO Quote

DMG’s CEO, Sheldon Bennett, stated, “This MOU catalyzes our entry into generative AI in a very meaningful way. Not only does the PDC shorten our time to deployment by at least a year, but it also gives us the needed credibility as a new AI entrant to secure off-take agreements in a timely manner. Given the SCIF (military-grade) nature of the infrastructure, we will be focused on off-take opportunities that prioritize this need, as we believe we can garner a revenue premium for offering this capability. This MOU also enables us to proceed with our Gen AI strategy in a more capital-efficient manner, helping us to maximize our return to shareholders.”

Fundamentals

P/E Ratio	-8.6000
PEG Ratio	3.3
Price to Book	0.52
Price to Cash Flow	10.1686
Price to Free Cash Flow	–
Total Sales (TTM)	24.93 M
Revenue per Share (TTM)	0.15
Shares Outstanding	203.105 M
Share Float (%)	198.07 M (97.52%)
% Held by Institutions	0.10