Foreign media report that Canadian mining company DMG Blockchain is attempting to redirect cash flows generated from Bitcoin mining into funding the construction of AI data centers. The company’s latest financial report shows that its self-operated mining produced 69 Bitcoin in the second quarter of fiscal year 2026, roughly flat quarter-over-quarter but down approximately 25% year-over-year; revenue for the quarter amounted to $7.3 million, a notable decline from the previous quarter.
Business focus shifts to AI computing power
In its financial report, DMG categorized its future business into two segments: core data center operations and digital asset financial services, with the former increasingly being driven by AI infrastructure and computing power services.
The article states that over the past year, DMG has repeatedly disclosed its transformation strategy, planning to gradually transition its facility in Christina Lake from solely Bitcoin mining to a campus supporting both AI computing and traditional data center workloads. The company also aims to maintain approximately 1.8 EH/s of Bitcoin hashing power and retain a reserve of around 380 to 400 Bitcoins as a financial buffer.
Target customers are governments and enterprises.
According to the company’s previous documentation, DMG has procured 2 megawatts of prefabricated data center modules meeting high-security standards and has proposed developing over 50 megawatts of AI computing capacity at Christina Lake and other locations.
The management’s strategy is to maintain cash flow through hydroelectricity-powered Bitcoin mining, while positioning AI computing services as a higher-margin growth direction. Currently, the company is positioning its AI platform as a local operator providing infrastructure and services to Canadian government agencies, enterprises, and research institutions.
Funding pressure remains the biggest concern.
However, the article suggests that whether DMG’s current mining scale and revenue can support its high-cost AI transformation remains the biggest concern for outsiders. Assuming a price of $70,000 per bitcoin, the revenue from 69 bitcoins is not substantial, and building an AI data center also involves modular data centers, high-end GPUs, and stricter security requirements.
The company’s disclosures also show that it has consistently sold a portion of its Bitcoin over recent quarters to cover operating expenses and capital expenditures. For example, in April 2026, DMG produced 21 Bitcoin that month and held 389 at month-end, explicitly stating that it sold a portion of its holdings to pay for expenses.
The article suggests that DMG is currently maintaining two narratives simultaneously: on one hand, Bitcoin mining remains a source of cash flow; on the other, the company seeks to have capital markets and policymakers accept its new positioning as a "domestic AI infrastructure operator." Whether this transition can proceed smoothly, should Bitcoin prices or mining economics continue to face pressure, remains to be seen.