DMG Blockchain Solutions Inc., a vertically integrated blockchain and cryptocurrency technology company, announces a US$2-million strategic investment in Bosonic Inc. (“Bosonic”) a leading Silicon Valley technology company based in San Francisco, California. Bosonic provides critical infrastructure eliminating counterparty credit and settlement risk in Digital Asset Markets. DMG’s investment in Bosonic is a strategic initiative targeted at institutional adoption of cryptocurrencies and is synergistic with its recent investment in Brane Capital.
DMG’s investment is laser focused on accelerating the development of its Blockseer Core+ strategy. The investment in, and resulting partnership with Bosonic, facilitates DMG’s access to Bosonic’s two primary technology infrastructures: (1) institutional exchange; (2) Layer-2 blockchain-powered clearing and settlement solutions designed to eliminate counterparty credit and settlement risk. Bosonic is currently the only non-custodial marketplace technology infrastructure for institutions and fiduciaries to transact from the safety of their own custodial accounts with zero counterparty credit and settlement risk.
“By completing this transaction, DMG’s new partnership will help the Company develop more financial service-related functionality for the Blockseer Ecosystem. This initiative represents significant potential monetization of existing Blockseer clients and the ability of DMG for the first time to aggressively enter the consumer market for Blockseer platforms,” noted Sheldon Bennett, DMG’s CEO.
The DMG investment is part of a larger strategic investment into Bosonic that eventually converts into Bosonic preferred shares. DMG receives these preferred shares based on a 25% discount to a pre-money valuation in Bosonic’s next equity financing round or a US$200M market capitalization, whichever is lower. Mr. Bennett will serve a term on the Bosonic Board of Directors as part of the transaction.
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DMG views this as a critical move in reaching its strategic goal to become truly vertically integrated. This investment offers DMG the possibility for Blockseer to add to its development road map the future ability to offer its customers access to a Blockseer based crypto exchange platform. Additionally, with the investment in Brane Capital and DMG’s agreements to onboard Brane’s technology to the Breeze and Freeze wallets, DMG will soon have a custody solution adding to Bosonic’s suite of services, thus providing incremental potential revenue to both partners.
DMG’s planned Petra release (in Beta testing) has also been negotiated as a future product available to all users of Bosonic via Blockseer’s exchange. Lastly, DMG has some unique “exchange add-ons” in development that, when proven and tested, will be released via Bosonic’s infrastructure, which is similar to Petra.
“We are extremely excited to partner with DMG, whose Blockseer platform will power the world’s first digital asset ecosystem consisting entirely of clean energy mined and OFAC clean crypto. We believe this will help accelerate adoption of cryptocurrencies by institutions and fiduciaries with its integrated mining, independent custody, and various trade execution facilities within a single environment. This initiative will set a new standard for ESG conscious investors interested in digital assets,” said Rosario Ingargiola, CEO and founder of Bosonic.
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The wide-ranging benefits of the investment in Bosonic will facilitate an all-inclusive marketplace available to Blockseer that can command a premium on crypto pricing that will benefit users and drive participation in Blockseer’s platforms.
- Allows crypto miners and users to make instant payments 24×7 (including Layer-2 crypto payment) on DMG’s Blockseer platforms.
- Integrates with existing Blockseer platforms like Explorer, Walletscore, Pool and soon-to-be-released Breeze, Freeze and Petra.
- Improves the Blockseer Ecosystem, allowing clients to conduct crypto-related activities using Blockseer platforms, including trading, lending, borrowing and hedging.
- Expands Blockseer’s platform usage, attracting new crypto mining clients and institutional participants.
- Unearths more cryptocurrency-related financial service opportunities.
Roth Capital advised Bosonic on the transaction and is active in the North American FinTech and Digital Assets space. Roth Capital Partners, LLC is a relationship-driven, full-service investment bank that provides strategic and financial advisory services to emerging growth companies.
DMG also announces that with the approval of DMG’s Board of Directors, it issued 2,478,00 stock options to managing directors and employees at an exercise price of $0.84 for a three-year term pursuant to the Company stock option plan.
