DMG Blockchain pivots to AI colocation with 50 MW Christina Lake deal
The proposed 12-year agreement targets completion by late 2026, with debt identified as the primary funding source for the British Columbia facility’s transition to artificial intelligence infrastructure.
DMG Blockchain Solutions Inc. (TSXV: DMGI) has executed a non-binding letter of intent to provide 50 megawatts of critical IT load to a single artificial intelligence data centre tenant at its Christina Lake facility in British Columbia. The agreement signals a strategic pivot for the site, transitioning from its primary role in bitcoin mining towards AI colocation services.
The unnamed tenant is subject to a non-disclosure agreement and is expected to provide an investment-grade financial backstop for review as both parties work toward a definitive agreement. The company cautioned that there is no assurance a final deal will be reached, noting that the letter of intent is non-binding outside of specific clauses regarding confidentiality, non-circumvention, and a right of first refusal.
Under the proposed structure, the initial term would run for 12 years, with renewal rights for up to three additional five-year periods. The agreement includes monthly recurring charges and annual escalations that DMG stated reflect current market rates for AI colocation. The tenant also holds a 12-month right of first refusal if DMG intends to accept an offer from another third party.
DMG plans to deliver the colocation capacity in phases, with the first phase targeted for completion by 31 December 2026. The company identified debt as the primary financing method for the capital requirements if a definitive agreement is completed. During the negotiation period, the Christina Lake facility will continue to operate primarily as a bitcoin mining site.
This move keeps DMG within a broader trend among listed crypto miners seeking to convert power access and data centre operations into AI compute capacity. A 50-megawatt tenant would provide a clearer commercial path for the Christina Lake site as artificial intelligence demand pulls more miners toward higher-margin infrastructure uses. DMG Blockchain Solutions Inc. is currently trading at C$0.375 per share.
