VANCOUVER, British Columbia, March 02, 2021 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTCQB US) (FRANKFURT:6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company is pleased to announce that Ecopwrs LLC (“Ecopwrs”) from Wyoming, USA has selected DMG to lead the development and management of its Bitcoin mining operations in the Permian Basin of the United States.
This initial project will be for 25 MW of flare gas converted for use in Bitcoin mining. Ecopwrs reduces natural gas flaring by using gas to generate electric power and operate Bitcoin mining servers at well sites. This low-cost power improves margins for Bitcoin mining while reducing carbon emissions at Ecopwrs’ sites in the Permian Basin of Texas and New Mexico, which will be developed, in cooperation with DMG, as the exclusive Bitcoin mining operator.
DMG and Ecopwrs executed a Memorandum of Understanding (“MOU”) for DMG to develop and manage Ecopwrs’ initial minimum capacity of 25 MW (approximately 400 PH/s) of containerized crypto mining utilizing flare gas in the Permian Basin of Texas. DMG will help manufacture, deliver, commission and manage specialized crypto mining containers in traditional air-cooled units with plans to upgrade to DMG’s forthcoming immersion cooling systems at a later point. Pursuant to the MOU, DMG will also have the right to purchase an initial equity stake of up to 12.5% in Ecopwrs in order to become a strategic long-term anchor investor in this new venture.
Furthermore, DMG will operate the entire 25 MW of Bitcoin mining using its proprietary Mine Manager software, as well as manage the operation’s hashrate using its Blockseer Bitcoin mining pool. A separate third party technology partner will supply the mining hardware for Ecopwrs, which DMG will operate at these sites.
The initial 25 MW represents the first project phase, with four more phases identified, which will provide an additional capacity of 100 MW for DMG to build and operate (totaling 125 MW). Based on the planned hash rate of third party equipment, each 25 MW project would represent a minimum hashrate of approximately 400 PH/s.
“The sites will be powered by recovering and using wasted natural gas at current gas flaring and gas processing sites, allowing Ecopwrs to generate electricity for the Bitcoin mining operations at a very low cost,” said Ecopwrs’ CEO John Heffernan. “It’s important to note that electricity is the largest factor determining profitability in Bitcoin mining, and Ecopwrs’ waste gas-based generation will place the production cost for ourselves and our partner DMG among the lowest of all global Bitcoin miners.”
The initial phase of Ecopwrs operations will be deployed across five sites and produce approximately 25 megawatts of energy for the new Bitcoin mining facility to be operated by DMG. Ecopwrs expects its first site will be operational within 75 – 120 days from funding and will generate revenue for DMG from day one of Bitcoin mining operations. Ecopwrs’ overall business plan is to deploy approximately 25 sites, and DMG will be the exclusive Bitcoin mining operator for all sites.
Ecopwrs has lined up several energy exploration and production (“E&P”) companies as customers and partners for Ecopwrs’ and DMG’s service offering, and their principals’ relationships provide trusted access with an additional 20 E&Ps in the Permian Basin, laying the groundwork for an even larger capacity within the next 24 months. These prospective partners have flare gas mitigation requirements, representing many times the capacity needed to execute Ecopwrs’ operating plan as agreed in the MoU with DMG.
“DMG is focused on continuously growing its Bitcoin mining operations, as we are fully convinced that cryptocurrencies in general, and Bitcoin in particular, have tremendous potential for both short- and long-term growth,” said…