DMG Blockchain Solutions Announces Issuance of US Patent

VANCOUVER, British Columbia, Sept. 19, 2024 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a leading vertically integrated blockchain and data center technology company, announces the issuance of US Patent No. 11,810,103 by the US Patent and Trademark Office (USPTO). The patent covers DMG’s innovative Custom Mempool protocol for processing cryptographic events.

This patented system allows applications to send events to hashing processors running on a custom mempool protocol separate from the public blockchain protocol. Events are only hashed with other events that meet specific screening criteria, preventing transactions from being propagated to external nodes. This system improves control over which events are processed, improving security and privacy.

“This patent reinforces DMG’s commitment to developing secure, scalable digital asset solutions that give users more control over their transactions,” said DMG CEO Sheldon Bennett. “This is a key element of our Core+ strategy, especially our Petra technology. Petra is designed to provide financial institutions and sophisticated ordinary artists with the ability to transact using DMG’s Terra Pool, which operates in a carbon-neutral and regulatory-compliant environment.”

This patent forms the foundation of DMG’s previously announced Petra technology, which has been successfully applied by both financial institutions (DMG and Zodia Custody Successfully Test Blockseer’s “Petra” Platform, October 20, 2021) and ordinal creators (DMG Blockchain Solutions reiterates leadership in Bitcoin Blockchain Services, March 1, 2024).

DMG Management at the ArcStone-Kingswood Growth Summit on September 26 in Toronto

DMG’s management will present at the ArcStone-Kingswood Growth Summit 2024, held on September 26 from 8:00 AM to 5:00 PM ET at the Sheraton Center Toronto Hotel, 123 Queen St West, Toronto. To learn more about the event, visit arcstoneglobalsecurities.com/growth-summit. Register at GrowthSummit2024.eventbrite.ca.

Grant of Stock Options and RSUs

In addition, DMG announces the grant of stock options and RSUs to employees and directors of the company. A total of 398,920 stock options (“Options”) and 2,000,000 restricted stock units (“RSUs”) were granted. The Options are exercisable over five years at a price of $0.48 per share, with increments of 25% on the six-, 12-, 18- and 24-month anniversaries of the grant date. The RSUs vest in one year; these awards are designed to create an incentive structure that aligns long-term performance with the Company’s growth.

About DMG Blockchain Solutions Inc.

DMG is a sustainable, vertically integrated blockchain and data center technology company that develops, manages and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company’s operations are driven by two strategic pillars: Core and Core+, both united by DMG’s commitment to vertical integration and environmentally responsible practices.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com Follow @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.

For further information, please contact: On behalf of the Board of Directors,

Sheldon Bennett, CEO and DirectorTel: 516-222-2560Email: [email protected]: www.dmgblockchain.com

For Investor Relations: [email protected]

For media inquiries: Chantelle Borrelli Head of Communications [email protected]

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include statements regarding presentation at upcoming conferences, DMG’s strategies and plans, the potential and benefits of the custom mempool protocol patent, delivery of products that enable the monetization of bitcoin transactions, development and execution on the company’s products and services, increasing self-exploitation, the introduction of products and services, opportunities, actions and the potential of the company’s technology and operations, among others, are all forward-looking information.

Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate could materially affect the future performance of DMG’s production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hash rate -mining problems.

Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forward-looking language such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, including but not limited to, market and other factors. conditions, volatility in the trading price of the Company’s common stock, business, economic and capital market conditions; the ability to manage operating expenses, which could adversely affect the Company’s financial condition; the ability to remain competitive as other better-funded competitors develop and release competing products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meets customer needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technological changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the reliance on key personnel. DMG may not actually achieve its plans, projections or expectations. Such statements and information are based on numerous assumptions regarding current and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or legislation . that will prevent the company from operating its business, expected costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The securities of DMG are considered highly speculative due to the nature of DMG’s business. For further information on these and other risks and uncertainties, refer to the company’s filings at www.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.

Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of provision of equipment, power and infrastructure, failure to obtain any permits obtain. necessary to operate the business, the impact of technology changes on the industry, the impact of Covid-19 or other viruses and diseases on the company’s ability to operate, secure equipment and hire staff, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology in general, failure to develop new and innovative products, litigation, adverse weather or climatic events, increase in operating costs, increase in equipment and labor costs, equipment failures, decline in the price of Bitcoin, failure of counterparties to meet their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, the Company undertakes no obligation to comment on the expectations of or statements made by third parties in respect of the matters discussed above.