DMG Blockchain (TSXV: $DMGI) is moving another part of its bitcoin (CRYPTO: $BTC) mining footprint toward AI infrastructure, signing a letter of intent to provide 50 megawatts of critical IT load to a single AI data center colocation tenant at its Christina Lake facility in British Columbia.
The tenant has not been named and remains under a non-disclosure agreement. DMG said the customer is expected to provide an investment-grade backstop for review as the two sides work toward a definitive agreement. However, the company cautioned that there is no assurance a final deal will be reached.
The proposed structure points to a longer-term conversion of the site if the agreement moves forward. The initial term would run for 12 years, with renewal rights for up to three additional five-year periods. DMG plans to deliver the colocation capacity in phases, with the first phase targeted by Dec. 31, 2026.
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The LOI includes monthly recurring charges and annual escalations that the company said reflect current market rates for AI colocation. DMG also expects debt to be the primary financing method for the capital required if a definitive agreement is completed.
The update keeps DMG inside a broader shift among listed crypto miners trying to turn power access and data center operations into AI compute capacity. Christina Lake will continue to operate primarily as a bitcoin mining site during the negotiation period, but a signed agreement would move the facility toward AI colocation services for the tenant.
A 50-megawatt tenant would give DMG a clearer commercial path for Christina Lake as AI demand pulls more miners toward higher-margin infrastructure uses.
The LOI also gives the tenant a 12-month right of first refusal if DMG intends to accept an offer from another third party. Outside of that right, the NDA and non-circumvent terms, the LOI is non-binding.
DMG Blockchain Solutions Inc. (TSXV: DMGI) is currently trading at C$0.375 per share.