DMG Blockchain Solutions Inc.

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the DMG Blockchain Solutions Q3 2026 update conference call. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available on the company's website. Joining us today from DMG Blockchain Solutions is Sheldon Bennett, the company's chief executive officer, and Steven Eliscu, chief operating officer. During this call, management will be making forward-looking statements, including statements that address DMG Blockchain Solutions' expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in DMG Blockchain Solutions' most recent filed periodic reports and the company's recent press releases, particularly the cautionary statements within. The content of this call contains time-sensitive information that is accurate only as of today, August 27, 2026. Except as required by law, DMG Blockchain Solutions disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Sheldon and Steven. Sheldon?

Thank you, Adrian. Good afternoon, and thanks to everyone who has joined the call today. My name is Sheldon Bennett, and I am the CEO and founder of DMG Blockchain Solutions. This quarter, we will evolve our earnings call format where we focus on progress to deliver AI infrastructure and then summarize our efforts in digital asset financial services. I will then pass the call to Steven who will review the company's performance. We will end the call with our Q&A session based on questions submitted to us prior to the call, as well as from those using Zoom chat. So now to provide an overview of our strategy. First, our core data center infrastructure business focused on AI co-location. Our focus remains on providing AI data center co-location services, as we believe this is a business model that leverages our core strengths and enables us to deliver long-term value to shareholders. Specifically, we want to give you an update on the conversation of our Christina Lake facility to an AI data center. regarding our letter of intent for 50 megawatts of AI co-location services with our Optake client. We continue to work towards a definitive agreement, but we have agreed on primary commercial terms as per our LOI, which we have characterized as being in line with market. A definitive agreement is a much more complex document, which encompasses both the construction of the data center and a ready for service date, as well as operational service levels that we must meet. We are not in a position to provide guidance as to when this would be complete. As with our LOI, we would announce the agreement as soon as it decided. Regarding the timeline of having servers running before the end of the year, this was always communicated on a best efforts basis, and it was predicated in part on quickly reaching a definitive agreement. As we are now entering September, this is obviously an even bigger challenge, but we remain committed to enabling our client to operate its servers as quickly as possible. Regarding choosing vendors, we have a good working relationship with the leading vendors that supply equipment into this market, and we have a good understanding of pricing and lead times for major equipment needed to construct the data center. Regarding a general contractor, We plan to use one. While others have ensourced this role, given our smaller size, to help ensure project success, we plan to partner with contract staff who have a track record, relationships, and expertise to get the job done. We have gone through an extensive search, and at this point, we are working with several candidates towards a decision. Regarding design firms, we plan to utilize the electrical engineering firm that we have utilized for the past decade. We've already selected an architectural firm for mechanical instructional engineering. We're currently working with several candidates towards a decision. Regarding permitting, we have applied for a permit for an addition to our current building, which would double its capacity. This would house the balance the tenants needs. We do not believe permitting will be a gating item for this project. Additionally, as a reminder, we already have a zoning in place to operate as a data center. While there has been recent news of an area in our region banning data centers, that measure applied to an area which already had no zoning for data centers and thus would not impact DMG. Well, we have encountered opposition from a few members of the local community who were opposed to DMG as a crypto miner as well. But as in the past, we have been open and cooperative. We have emphasized that our project will not impact utility rates as we will use the same 15 megawatts of firm power that we have been utilizing for over the last five years, while using less water and generating less noise than Bitcoin might. The rest of our power is non-firm and is procured by our utility from the wholesale market in the Pacific Northwest. That has no impact on local rates. Regarding tradesmen, we have secured a couple of electrician firms at the start, and as we know, we will need more. Part of our selection criteria of the general contractor and design firms is that they can help us source additional tradesmen. In addition, we look to balance the amount of labor that is incorporated into prefabricated assemblies versus building on-site so as to optimize assembly time and cost. Regarding connectivity, We have contracted to connect a 100-gigabit fibreture facility, and we are deciding regarding a second diverse path and possibly a third. These lines may be upgraded to 400 gigs in the future. Given the remoteness of our site, connectivity has been one of our bigger long lead item concerns and is an area where we have committed material capital expenditures ahead of a definitive agreement. As a follow-up from the previously disclosed verbal approval, we now have written approval from our utility for an additional 10 megawatts of non-firm power. That gets us up to 60 megawatts of non-firm power along with the 15 megawatts of firm, which formally increases our total contracted power to 75 megawatts. Note that while there are are delivering risks associated with non-firm power. Having the 15 megawatts of firm power should always allow our tenant to operate its GPUs even at a lower level for relatively rare events when non-firm power cannot be delivered. Typically, we have hours of notification time that allows for proper throttling down of workloads during those periods. Our existing Christian Lake substation that we own can already support the full 75 megawatts load, but we will need to twin the main transformer for redundancy. This is a long lead time item, but it will not gate the initial ramp up, which may operate with limited redundancy. We plan to phase in backup power generation as well. We're actively exploring financing with multiple financial institutions with a range of instruments from rated bonds, lines of credit and equity convertible debt. Our goal is to optimize for cost of capital, flexibility and speed while minimizing dilution. We'll update the market once terms are finalized. In addition, future expansion is important to us as we want to go beyond a single event story of converting Christian Lake to a 50 megawatt AI data center. Therefore, we are investigating how we can expand the capacity of Christian Lake beyond 75 megawatts of contracted power. We are continuing discussions about expanding the amount of firm power. We have disclosed in the past that we have an application with utility for 150 megawatts of firm power. This will require us putting up significant capital, but we believe that given the long-term nature of our leases, these investments could yield attractive returns. Combined with our non-firm power, assuming we have line capacity, this could give us over 200 megawatts of electrical energy to the site. We were also investigating setting up additional sites in Canada. We were working on several sites, each of which could mirror Christina Lake in size. Well, we don't want to diminish the other opportunities we have discussed in prior calls. We know that for maximizing our valuation, getting to a definitive agreement on 50 megawatts at Christine Lake and as many megawatts under our belt within the 2027 to 2029 site energization timeline is paramount. We have no... updates to report on the Boardman, Oregon site, where we have placed a deposit to purchase a building on an 18-acre leased parcel, but we remain interested in this property for longer-term expansion. Next, Core Plus, our digital asset financial services. Even while our digital asset financial services business is generating very limited revenue, we continue to develop it. It is foundationally As foundationally, we have built a differentiated platform that we believe can grow over time with modest investments going forward. We've done this with a limited size software team that continues to get more efficient as we leverage AI tools combined with agile management that allows us to get far more done now. Then we did several years ago with a larger team. Note that in July, we changed the name of our custodian business to Numus Trust from Systemic Trust. This is more than a name change as we expanded our vision beyond just custody and added greater functionality allows a much larger audience interact with the platform. We encourage you to go to numus-trust.com as we have revamped the website to better communicate the value proposition of the platform. regarding TerraPool Helm Reactor will provide updates as they are forthcoming. Now I'll hand it over to Steven to review the company's performance.

Thank you, Sheldon. I'm Steve Eliscu, DMG's COO. In the spirit of reorienting these calls to focus on our future, I will shorten my comments versus prior calls, allowing ample time for questions. Now to review our financial results for Q3 or June quarter of 2026. Revenue decreased 13% sequentially to 6.4 million in the June quarter, mainly due to 14% lower house rate as our miners that had been hosted were being transported back to our Christina Lake facility last quarter. And our miners at our facility operated at less than full capacity in the seasonally warmer weather. Our hash rate decline, our hash rate for the quarter was 1.47 exahash with an efficiency of 21.9 joules per terahash. We received 61.9 Bitcoin, a 10% sequential decline Note that we did not report monthly results after May as our regulator is now requiring that these disclosures include accompanying detail that we would typically only report with our quarterly results. As such, we are reporting our mining results on a quarterly basis going forward. Operating and maintenance costs in the June quarter decreased 15% sequentially on lower hash rate and lower utility costs supporting a slightly higher margin of 31% versus the prior quarter of 29%. Our energy cost to mine a Bitcoin was about 43K US. As a proxy for cash flow from our business, which assumes we're selling 100% of our generated Bitcoin, our earnings before other items, excluding depreciation, Emeritization and Stock-Based Comp in the June quarter was $0.2 million or 3% of revenue on a percentage basis as we tightly manage operational expenses. Our cash flow from operations was $1.2 million. Our earnings before other items in the June quarter was minus $3 million and net loss was minus $3.9 million or minus $0.02 per share. Regarding our balance sheet, our cash short-term investments plus Bitcoin holdings at the end of the June quarter was 41.6 million, down 12% from the prior quarter, mainly on the decreased value of our Bitcoin holdings. The value of our property and equipment and long-term deposits decreased 5% to 45 million from the end of the prior quarter as depreciation exceeded our capital additions. Accordingly, our total asset base decreased to $102.3 million from $109.9 in the prior quarter. Book value was $77.3 million or $0.37 per share. Our Signum loan balance was $19.7 million at the end of the June quarter. We do not expect a draw from the facility in the near term, and we'll look for opportunities to pay it down. In the June quarter, we sold 80 Bitcoin, or 129% of our line output, generating 7.8 million of cash. Our Bitcoin balance decreased 5% from the prior quarter to 379 Bitcoin. I will now hand the call back to Sheldon to summarize our prepared comments, and we will answer questions. Sheldon?