Vancouver-based DMG Blockchain Solutions Inc. (TSX-Venture:DMGI) was in the mega-deal business mid-week Wednesday, announcing a Mining as a Service (MaaS) contract with a major blockchain industry company to host approximately seven megawatts of bitcoin mining capacity.
The new customer will pay DMG’s hosting fee for approximately 4,200 newer-model bitcoin miners. The agreement term is three months, with automatic renewals every three months.
Supporting DMG’s ability to fill its mining capacity is the recent large drop in Bitcoin network computing power (hash rate), which enables large-scale industrial miners, like DMG customers, to still be profitable on an operational basis, even at current bitcoin pricing.
DMG CEO Dan Reitzik stated, “We are pleased that, just as we energized our new substation, we added a significant new client and we are now filling our capacity in accordance with DMG’s MaaS growth strategy.”
Shares in the company added two cents, or 12.9%, to 17 cents as Wednesday morning became afternoon, on volume of 149,000 shares.
