- Marathon will be launching the first North America-based Bitcoin mining pool that is fully compliant with U.S. regulations
- Marathon intends to direct 100 per cent of its hashrate to the Digital Currency Miners of North America (DCMNA) pool
- Marathon will be licensing DMG's proprietary Blockseer pool technology
- DMG’s Blockseer pool technology include the ability to filter transactions to ensure AML and OFAC compliance
- Sheldon Bennett has been appointed CEO of DMG Blockchain
- Steven Eliscu has joined DMG’s board of directors
Marathon Digital Holdings and DMG Blockchain Solutions (DMGI) will partner to provide technology for Marathon and the new DCMNA pool.
Marathon, one of the largest enterprise Bitcoin self-mining companies in North America, will be launching the first North America-based Bitcoin mining pool that is fully compliant with U.S. regulations.
Unique features of DMG’s Blockseer pool technology include the ability to filter transactions to ensure AML and OFAC compliance in anticipation of impending US regulations. On a day-to-day basis, the Digital Currency Miners of North America (DCMNA) will manage the pool with DMG providing strategic guidance and/or technical support as needed.
Marathon intends to direct 100 per cent of its hashrate to the new mining pool. Marathon expects all 103,120 of its miners to be deployed by the first quarter of 2022, at which point, the company will be directing 10.37 EH/s to the mining pool.
In June 2021, the pool will begin accepting other U.S.-based Bitcoin mining companies.
As part of the agreement, Marathon will be licensing DMG's proprietary Blockseer pool technology. Under the terms and conditions of the agreement, DMG will receive:
- US$500,000 in common shares of Marathon
- a monthly license fee paid in cash or Bitcoin (at DMG’s election)
- technical support services to be provided on an as-needed basis with payment in US dollars
- DMG is a vertically integrated blockchain and cryptocurrency company
- DMG Blockchain Solutions (DMGI) is up 0.80 per cent, trading at C$2.51 per share at 10 am ET
"We are excited to provide our proprietary software tools to the DCMNA pool. As more U.S.based Bitcoin mining companies (and their hashrate) join DCMNA, DMG will receive more Bitcoin from licensing our technology," said DMG’s CEO & COO, Sheldon Bennett.
“While institutional interest in Bitcoin is accelerating, many large funds and corporations have expressed concerns over purchasing Bitcoin that may have been tainted by nefarious actors,” said Merrick Okamoto, Marathon’s chairman and CEO.
“Our pools’ initiatives are grounded on decentralization, transparency, legal compliance with U.S. rules and regulations, and independent auditability under U.S. auditing standards. While we appreciate some miners’ appetite for processing transactions indiscriminately, it is our responsibility to follow U.S. regulations. We believe that such regulatory compliant mining will allow us to produce ‘clean’ Bitcoin, which will enable a greater number of institutions to gain exposure to this new asset class, ultimately benefiting our organization, our shareholders, and the broader network.”
DMG also announces a change in senior management and the addition of a new director.
Daniel Reitzik has resigned from DMG as a director and as the Chief Executive Officer. Mr. Reitzik was one of the founders of DMG and helped DMG grow from a small company in 2016 to a leading cryptocurrency and blockchain company.
Sheldon Bennett, also a founder, who leads the day-to-day operations of DMG, has been appointed CEO and will also continue in his position of Chief Operating Officer for the time being. With the appointment to CEO, Mr. Bennett will continue building on his role of developing new business opportunities, partnerships, and continuing to execute on bringing DMG’s products to market.
The company is also pleased to announce that Steven Eliscu has joined DMG’s board of directors. Mr. Eliscu currently works as Head of Finance for DSP Concepts, and he is an experienced Blockchain and technology industry veteran, with experience at Bitfury as well as having advised a number of Blockchain start-ups.
Mr. Eliscu has a Bachelor of Science in Computer Engineering from Rensselaer Polytechnic Institute and an MBA from the University of Chicago Booth School of Business.
DMG has granted 200,000 stock options with an exercise price of $2.49 to Mr. Eliscu for a three-year term.
Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
DMG is a vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem.
DMG’s businesses are segmented into three main divisions: data centre operations, data analytics and forensics and developing enterprise blockchains.
DMG Blockchain Solutions (DMGI) is up 0.80 per cent, trading at C$2.51 per share at 10 am ET.