Rankings Software, cloud & internet DMG Blockchain
DMG Blockchain
39
15070100
A view of the same findings, not a new score. How it works
The model found several serious problems. That does not mean the stock will fall.
Biggest deductions
- Valuation vs history−13
- Margin−9
- Quality of growth−6
Strengths
- Liquid assets+2
Speculative profile
A penny stock under DKK 3. The asymmetry rating is separate from the Bjarvik score and is not a recommendation.
- Asymmetry (1–10)
- 4
- Price
- 2.37 DKK
- Market value
- DKK 492m
- Cash runway
- 33 months
- Cash / debt
- 2.8 / 19.7m CAD
- Dilution, 12 months
- +2%
Bull case
A final 12-year agreement for 50 MW with an investment grade tenant could give annual rental income in the neighbourhood of C$100m+ (at typical colocation prices), and other miners that have made similar deals have been re-rated many times. If the project is financed mainly with debt against the lease, the stock could rise 3–5x.
Bear case
The letter of intent falls through, or the deal requires a large share/convertible issue; at the same time the bitcoin price falls, so both mining income and the BTC holding shrink while the loans must be repaid. Without the AI story the stock is worth about the liquid assets and the machines (P/B 0.5–0.8, about C$0.20–0.30), i.e. −40–60%.
Catalysts
- 18 Dec 2026Annual accounts 2025/26 (Q4) with bitcoin holdings and debtgradual stockanalysis.com
- Undated (expected before energisation in 2027)Definitive 12-year agreement for 50 MW of AI colocation with an anonymous tenant with an investment-grade guaranteebinary globenewswire.com
- 2027Energization of the first phase of the AI data center at Christina Lake (postponed from 31/12-2026)binary bnnbloomberg.ca
Risk of going to zeromedium – the bitcoin holding exceeds the loans, but operations lose money, the mining fleet is shrinking, and the AI conversion can only be financed externally.
Next financingFree cash is only C$2.8m, but with short-term investments and 393 BTC liquid assets are C$41.6m; less the loans of C$19.7m, about C$22m lasts about 33 months at current burn (about C$2m per quarter incl. capex). The AI conversion to 50 MW requires far more capital (probably several hundred million C$) – financed with bonds, credit lines and/or shares/convertibles once a final lease is in place, probably in 2027.
Warrants & convertiblesNo convertibles found; warrants and options not quantified. The share count rose from 203.2 to 207.7m in a year (+2.2%; stockanalysis' weighted figures +7.8% incl. the issue in December 2024). The company is considering shares or convertibles for the AI conversion.
Insiders, last 12 monthsNot examined; insiders own only c. 1.6% according to stockanalysis.
Largest ownersNot examined. Institutions c. 0.1%, insiders c. 1.6% – almost purely retail-owned.
Circio check(1) Small market cap: yes – approx. C$106m. (2) Hot theme: yes – AI data centers and bitcoin. (3) Upcoming milestones: yes – final AI agreement. (4) Major partner: partial – anonymous tenant with an investment-grade guarantee, but only a non-binding LOI. (5) Funding for 2+ years: no for the AI project – operations are covered, but the conversion is unfunded. (6) Price near the bottom: no – the price is approx. 35% above the 200-day average and P/B at the highest level since 2021.
Why this asymmetryA binary AI catalyst with real upside and a bitcoin holding that covers the debt gives some asymmetry. But the price has already priced in part of the LOI, the deal is delayed, and financing of the conversion will with high probability dilute shareholders.
How the score is built
From 100 to 39, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 0.34 CAD
- Median analyst target
- –
- Upside to median
- –
- Analysts
- none
- Target range
- –
- 52-week change
- −26%
- P/E (trailing)
- n/a
- Forward P/E
- n/a
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−22 of −30
- −9MarginOperating margin −24% and net margin −36% TTM; gross margin has fallen from about 42% to 31% in Q3 2026, and the net loss was C$3.9m in the quarter (ROE −14%, counted only here).
- −6Quality of growthRevenue fell 45% year over year to C$6.4m in Q3 2026; hashrate fell 14% in a quarter to 1.47 EH/s, and only 61.9 BTC was mined (-27% year over year).
- −4MoatA small miner with 1.47 EH/s without scale advantages; 60 of the site's 75 MW is non-firm power, and the software businesses have not shown earnings. The value rests on an AI plan that is not yet under contract.
- −3Capital allocationAccumulated deficit of C$104.6m vs C$122m in paid-in capital; equity has fallen from C$114.6m to 77.3m in nine months.
Price
Today's multiples against the company's own history and its peers. · 1 finding−13 of −35
- −13Valuation vs historyP/B 1.37 vs 0.44–0.98 in 2022–25, EV/Sales 3.38 vs 0.90–2.81 and EV/EBITDA 27 vs 12–24 – the highest valuation since 2021, while revenue is falling. The price (200-day average CAD 0.38) is driven by a non-binding AI letter of intent.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−22 of −35
- −6Uncertainty of the AI dealThe letter of intent for 50 MW of AI colocation (1/6-2026) is non-binding and the tenant anonymous; the first phase has moved from 31/12-2026 to energisation in 2027, and a final agreement has still not been signed (15/9-2026).
- −6Funding and dilutionThe conversion to AI requires significant capital with no published estimate; the company is looking at bonds, credit lines and shares/convertibles, while free cash was only C$2.8m at 30/6-2026.
- −4DebtShort-term secured loans of C$19.7m (C$7.4m drawn in 2026) vs cash of C$2.8m; Altman Z-score 0.54 and Piotroski 1.
- −4Bitcoin priceBoth revenue and the largest asset item (about C$31.6m in bitcoin) follow the bitcoin price; a fall hits operations and the balance sheet at the same time and could trigger demands from lenders.
- −2Power and local community60 of 75 MW is non-firm power; the application for 150 MW of firm power requires significant capex, and there is local opposition to the expansion.
Plus
Only documented strengths. · 1 finding+2 of +15
- +2Liquid assetsCash, short-term investments and bitcoin totaling C$41.6m at 30/6-2026 (of which 393 BTC in June) – above the loans of C$19.7m and approx. 40% of market cap.
Caveats
What the score does not capture, or where the data is weak.
Penny analysis (Under DKK 3 – Canada). Industry: none fits exactly – DMG is a bitcoin miner on its way to becoming an AI data centre (colocation), so 'Software, cloud & internet' is chosen as the closest (same choice as Hyperscale Data). Cyclical set to true, as earnings today follow the bitcoin price. Fiscal year ends 30/9; latest figures are Q3 2026 (30/6-2026). Market cap is about C$106m (about DKK 492m) at 207.7m shares × C$0.51 – in line with Nordnet. Capex estimate and financing for the AI conversion have not been published, and the AI tenant is anonymous. Terms of the loans (C$19.7m) have not been investigated. Insider trades and largest owners have not been investigated. No analyst coverage on stockanalysis (forecast 404).
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