
DMG Blockchain Emerges as the Digital Crypto Defense Frontier Frontrunner
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From mining Bitcoin in rural British Columbia to engineering SCIF‑rated data centers for quantum‑ready defense work, DMG Blockchain Solutions Inc. (TSXV: DMGI | OTCQB: DMGGF) has quietly emerged as Canada’s stealth contender at the crossroads of crypto and national security. “We’ve publicly stated that DMG has secured up to 10 megawatts of SCIF‑rated modular data centers,” CEO Sheldon Bennett told InvestorNews host Tracy Hughes in a recent interview. The facilities—engineered so that “people can’t read information and pick up radio waves and do all sorts of snooping”—signal DMG’s quiet leap from stalwart Bitcoin producer to supplier of secured compute power for quantum‑inflected artificial‑intelligence workloads.Formed in 2016 and public since 2018, DMG was the first Canadian Bitcoin miner to list on a stock exchange. Its early bet on vertical integration—owning data centers, developing mining software and building a carbon‑neutral ecosystem—now looks prescient as governments move to curb emissions and as Bitcoin’s halving economics squeeze inefficient operators. “We’re really focused on being able to build a Bitcoin at the lowest cost possible for a public company,” Mr. Bennett said, noting that constant uptime and disciplined overhead matter more than chasing the absolute cheapest kilowatt hour.That discipline is tested daily. On July 2, the company reported that a lightning‑sparked outage and contamination woes in its liquid‑cooled “hydro” rigs cut June output to 23 bitcoins, down from 31 in May. Realized hashrate slipped to 1.56 EH/s, but DMG still held 341 bitcoins on its balance sheet and reaffirmed a goal of 3 EH/s by year‑end 2025. “In June, we encountered several unforeseen issues with our Bitcoin mining infrastructure,” Mr. Bennett conceded in a news release, yet he portrayed the setbacks as catalysts for a broader migration to “pockets of low‑cost renewable energy” across Canada.That migration dovetails with DMG’s most ambitious product: Terra Pool, billed as the world’s first carbon‑neutral Bitcoin mining pool. “We only allow people to apply and join that are on carbon‑neutral energy,” Mr. Bennett said. The resulting coins let institutional investors “move Bitcoin in a sustainable and regulatory‑compliant manner,” a pitch that dovetails neatly with the company’s wholly owned Systemic Trust Company. “Instead of buying bitcoins from Robinhood or Coinbase where you’ll have carbon in all of your transactions,” he explained, “you can actually go to our trust and have the bitcoins moved by us.”Investors weighing a straight bitcoin ETF against DMG stock may find the miner’s economics compelling. “In general, it costs around $50,000 in power to generate a Bitcoin,” Mr. Bennett said, pointing to six‑figure spot prices and DMG’s lean cost structure. ETFs must constantly “buy and sell to rebalance,” racking up fees, whereas a miner can expand margins by upgrading hardware or tapping cheaper power. DMG’s next wave of upgrades—retiring air‑cooled rigs in favor of liquid‑cooled hydro units—should, he argued, deliver both higher efficiency and longer equipment life.All this unfolds as Washington rewrites the rulebook for digital assets. “With Donald Trump coming in, with the change in policy around digital assets, with significant U.S. banks getting more involved, I think that day [of mass adoption] is coming,” Mr. Bennett said. His own litmus test remains “the day my mom and dad will have their checking, savings or mortgage in their Bitcoin account at their local bank.”