DMG Blockchain Solutions Inc. , a diversified blockchain and technology company, is providing an update and overview of its crypto-mining operations and its forensics division.
DMG constructed an 85-megawatt substation to power its flagship facility in eastern British Columbia, which is one of the largest such facilities in North America. To put that into perspective, 85MW is enough to power a city of 100,000 people. As a company, DMG chose to primarily invest in long-lived assets, including infrastructure and power distribution, as opposed to short-lived, capital-intensive mining equipment. DMG’s facility currently contains an 85MW high voltage substation with 60MW of mid-voltage transformers.
DMG’s property is approximately 32 acres with a 27,000 square foot building in place. The facility can house 45MW of servers with the remaining 15MW being housed using proprietary modular containers. DMG primarily hosts mining equipment for third party clients from North America and Asia, and is currently providing approximately 15MW for clients and itself, generating approximately $1,000,000 in monthly gross revenue.
With the roll out of the next generation of crypto miners, more efficient miners are expected to be widely deployed in late 2019 and DMG is currently in discussions with multiple parties to host their latest technology servers.
One of the great advantages of owning its own substation is DMG’s flexibility in its power consumption. This essentially gives DMG many choices on how to operate its power needs, similar to utilities. Due to DMG’s power infrastructure it can also purchase power from third-party providers outside of standard utility pricing. As well, DMG’s software team has added considerable automation to DMG’s proprietary crypto management software. This software can increase and decrease the power consumption of crypto servers based on real time factors such as heat and time of day. This allows DMG and its customers to overclock servers to produce more revenue at cooler temperatures so there is less need for costly HVAC systems. The software also identifies physical locations of servers in need of repair and what exactly needs to be repaired so that staff technicians are efficient in finding, repairing and returning servers back to operations in the shortest time.
With the price of bitcoin having increased substantially over the past nine months, DMG is receiving more interest from potential clients for hosting contracts. DMG primarily hosts mining equipment for third parties and their bitcoin is sent to their crypto-wallets. For DMG’s own mining, bitcoin is sent to a company-controlled wallet, residing off-line in a hardware wallet which is kept in a safety deposit box at all times with a minimum of two people required to access it.
By 2019, DMG has become one of the leading crypto-mining companies providing hosting services, forensics and data analytics expert, as well as the lead developer of Wazabi, the AI- and Blockchain-based cognitive platform developed to manage the global cannabis supply chain.
Walletscore and Blockseer
DMG has capitalized its research and development to launch its newest software product called “Walletscore” which is a real-time crypto focused anti-money laundering tool for Bitcoin and Ethereum.
In early 2018 DMG acquired Datient Inc, based out of Silicon Valley and led by Danny Yang. One of the reasons DMG acquired Datient was for its technology known as Blockseer, which allows investigators to track bitcoin transactions both upstream and downstream. Blockseer had been used by various law enforcement agencies for five years and as such the data collected includes very valuable and accurate labelling of transactions and wallets involving scams, frauds, thefts, dark web purchases, etc.
Walletscore is a web interface and API used by financial institutions, exchanges, and private banks which provides a risk score associated with transacting with potentially tainted crypto wallets, thus reducing the probability that DMG’s clients will be involved with wallets that have previous money laundering or other criminal activity. Walletscore combines its data with that from Blockseer to perform these functions. Walletscore was recently launched in Europe, and more than 25 financial institutions are now testing this technology.
During 2019, DMG was engaged by a leading audit firm as a technical expert on crypto mining, transactions and asset impairment. Additionally, DMG was engaged by one of the world’s largest crypto mining companies to assist with their public audit. DMG uses a combination of its Walletscore and Blockseer technologies and data analytics expertise to help determine accurate information and reporting.
In addition, in recent months DMG has been hired by various law firms to provide technical reports relating to ICO (initial coin offering) investigations concerning the source of funds and where funds are presently. As a result, DMG’s forensic division has generated more than $250,000 in consulting revenues in the past few months.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com