DMG Blockchain Solutions Inc. Announces 50-Megawatt AI Data Center Letter of Intent

DMG Blockchain Solutions Inc., a vertically integrated digital asset and data center technology company, announces it has signed a letter of intent (the “LOI”) to offer 50 megawatts critical IT load of artificial intelligence (AI) data center colocation services to a single tenant (“Tenant”) at its Christina Lake, British Columbia facility. The Tenant, who is under a non-disclosure agreement (“NDA”) at this time, will be providing DMG with an investment grade backstop to review. The Company and the Tenant are working towards a definitive agreement (the “Definitive Agreement”), but there is no guarantee the parties will reach such agreement.

The initial term of the Definitive Agreement is 12 years with the right to renew it for up to three (3) periods of five (5) years. Pursuant to the LOI, the Company will deliver colocation capacity to the Tenant in phases with the goal of delivering the first phase by December 31, 2026.

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The LOI specifies Monthly Recurring Charges and Annual Escalations that reflect current market rates for AI colocation. As previously disclosed, DMG will seek to utilize debt as the primary method of financing to meet the needed capital requirements if a Definitive Agreement is concluded.

The LOI further stipulates that commencing on the date of the LOI and for a period of twelve (12) months thereafter the right of first refusal (“ROFR Term”), in the event that the Company intends to accept an offer from a different third party, the Tenant shall have seven (7) business days from the offer notification to exercise the ROFR. Outside of the ROFR Term, NDA and non-circumvent conditions, this LOI is non-binding. The proposed transaction is at arm’s length.

During this time period, the Company will continue to operate its Christina Lake facility primarily as a Bitcoin mining operation. If the Definitive Agreement is entered into by the parties, then the Company will transition the facility to an AI data center to provide the colocation services to the Tenant.

If and when the Definitive Agreement is executed in connection with the proposed transaction, the Company will issue a more comprehensive news release disclosing further details of the proposed transaction. There is no assurance that the Definitive Agreement will be successfully negotiated or executed by the parties.

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