VANCOUVER, Feb. 15, 2018 /CNW/ - HashChain Technology
Inc. (TSXV: KASH) (OTCQB: HSSHF) ("HashChain" or the
"Company") is pleased to announce it has completed its
previously announced acquisition of the assets of blockchain
technology company, NODE40, LLC, (the "NODE40 Business" or
NODE40) which includes a team of experienced blockchain
experts and software engineers. This acquisition marks HashChain's
initial move to diversify its crypto-currency mining strategy with
blockchain based solutions.
Terms of the Agreement
Under the asset purchase agreement for the acquisition of the
Node40 Business (the "APA"), HashChain has acquired the NODE40
Business for a purchase price comprised of US$8,000,000 in cash, payable as to US$4,000,000 at closing (subject to a closing
adjustment provision), and US$2,000,000 on each of 180 days and one
year following the closing date, and a total of 3,144,134 common
shares in the capital of HashChain ("Shares"), to be issued in the
following amounts and on the following dates (each, an "Issue
Date"): (i) 1,800,000 Shares on the closing date, (ii)
700,247 Shares on the date that is 180 days following the
closing date; and (iii) 643,887 Shares on the one-year
anniversary of the closing date, subject to NODE40s option to
receive cash in lieu of up to 30% of the shares issuable pursuant
to (ii) and (iii) above to a maximum of $600,000 USD for (ii) and $600,000 USD for (iii) above.
NODE40's business comprises two major segments including 1)
Cryptocurrency accounting solution for cryptocurrency trading, and
2) Masternode hosting.
Cryptocurrency Accounting Solution
NODE40 Balance is a robust cryptocurrency reporting
software that integrates directly with certain major cryptocurrency
exchanges. Members of the blockchain community transacting in,
trading, or mining digital currency, have likely triggered a
taxable event and can be unaware of how to properly disclose these
transactions to the government. With a cryptocurrency market size
of $450 billion, (more than JP
Morgan's value as reported by CNBC), government intervention into
the cryptocurrency market is certain as is the need for more
defined accounting solutions. To address a strict regulatory
environment, NODE40 uses a coin-holder's transaction history and
analyzes the blockchain to determine accurate valuations for every
input and output comprising a transaction. Once a value has been
assigned to every transaction, the service can report the current
total asset value, income, and any realized gains or losses. It is
expected that a greater number of countries will join those that
have already imposed a higher degree of regulation like
Australia, Israel, South
Africa and others. NODE40 Balance is strategically
positioned to work directly with tax authorities globally to adapt
to their specific requirements.
Coinbase, one of the leading exchanges for cryptocurrencies with
billions of dollars exchanged on its platform, recently received a
court order from the Internal Revenue Service ("IRS"), to hand over
information on all customers who made a transaction worth
$20,000 or more between 2013 and
2015, which is estimated to total 8.9 million transactions
impacting more than 14,000 different account holders, according to
Forbes.com.
"Cryptocurrency mining remains an important focus for HashChain,
as we continue to acquire more Rigs and generate revenue. By the
end of February 2018, HashChain will
have grown from 100 to 870 operational mining rigs across our
Vancouver and Montana data centers, for a total of 1.3
megawatts (MW) of cryptocurrency mining in ideal conditions to
maximize return on investment. The company is poised to continue
this momentum with the purchase of 3,000 rigs for approximately
$12.4MM USD, expected to be
operational in the coming months for a total of 5.8 MW of power
devoted to mining by middle of this year. The acquisition of the
NODE40 Business is an important next step of creating a global
blockchain technology company," said Patrick Gray, CEO and Founder
of HashChain. "Cryptocurrency accounting and reporting for tax
purposes is a major concern in the industry at the moment. The
recent Coinbase subpoena from the IRS highlights the significant
need for the software developed by NODE40."
Masternode Hosting Services
NODE40 also provides Dash masternode hosting services. The
company frees cryptocurrency investors from the technical hurdles
and time investment needed to run Dash
masternodes. Masternodes are full blockchain nodes that run
the Dash blockchain and provide services to the network, such as
locking transactions with InstantSend and voting on budget funding.
Masternodes require a 1,000 Dash collateral, and an ability to run
24 hours a day without exceeding a one hour connection loss.
Masternodes get paid 45% of the monthly block reward as incentive
for providing services to the network. As part of the
acquisition of the NODE40 business, NODE40 will pay to HashChain
certain masternode rewards for a total duration of 36 months
following the closing after which time this revenue stream will
cease.
About HashChain Technology Inc.
HashChain is a blockchain company, and the first publicly traded
(TSXV:KASH: OTCQB: HSSHF) Canadian cryptocurrency mining company to
file a final prospectus supporting highly scalable and flexible
mining operations across all major cryptocurrencies. HashChain taps
low-cost North American power, cool climate and high-speed
Internet: the trifecta most critical to mining success, to create a
competitive position for maximizing the number of mining 'wins.'
HashChain currently operates 100 Dash mining Rigs, have received
770 Bitcoin Rigs, and has purchased an additional 3,000 Rigs. Once
all Rigs are operational HashChain will be consuming approximately
5.8 megawatts of power. HashChain also acquired a Dash Masternode
for approximately USD $280,000 which
requires a collateral investment of 1,000 Dash coins.
Diversifying their business strategy beyond crypto mining, the
company has also acquired NODE40, a blockchain technology company
that developed NODE40 Balance, a new SaaS product making
cryptocurrency tax reporting simpler and more accurate. The
solution allows cryptocurrency users and traders to accurately
report their capital gains and losses. NODE40 is also one of the
leading masternode server-hosting providers for the Dash network
and is seeking additional alternate coin masternode hosting.
HashChain Mining is a wholly owned subsidiary of HashChain
Technology Inc. based out of Albany, New
York, with offices in Vancouver,
British Columbia and Geneva,
Switzerland.
On Behalf of the Board,
Patrick Gray
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Larry Heinzlmeir
Vice President, Marketing & Communications
Larry@HashChain.ca
604-537-8676
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward Looking Statements: Certain
disclosure in this release, including statements regarding the
acquisition by the Company of the NODE40 Business and GCPA (the
"Transactions"), including the anticipated benefits to the Company
of the Transactions, the performance of 5,000 Rigs ordered by the
Company, the expected timing of delivery and installation of 770
Rigs and expectations regarding future operations may constitute
forward-looking statements. In making the forward-looking
statements in this release, the Company has applied certain factors
and assumptions that are based on the Company's current beliefs as
well as assumptions made by and information currently available to
the Company, including that all conditions to the closing of the
Transactions will be satisfied, including receipt of all required
approvals, and the Transactions will complete on the terms set out
in the APA and the SPA, the acquisition of the NODE40 Business will
have the benefits to the Company anticipated by management, the
5,000 Rigs will be successfully ordered and delivered, the 5,000
Rigs will perform as expected by management and the timing,
installation and performance of the 770 Rigs will be consistent
with management's expectations. Although the Company considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements. Such risk factors may include,
among others, the risk that the conditions to the closing of the
Transactions will not be satisfied, including the risk that
required approvals are not obtained, and that the Transactions will
not complete on the terms set out in the APA and the SPA or at all,
the risk that the Transactions, if closed, will not result in the
anticipated benefits to the Company; the risk that the 5,000 Rigs
will not be successfully ordered from the manufacturer or, if so
ordered, that the Rigs will not be delivered to the Company when
expected by management or at all, the risk that the 5,000 Rigs will
not perform as expected by management and the risk that the 770
Rigs will not be delivered to the Company or that the timing of the
delivery and installation or the performance of the 770 Rigs will
not be as expected by management. Readers are cautioned not
to place undue reliance on forward-looking statements. The Company
does not intend, and expressly disclaims any intention or
obligation to, update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE HashChain Technology Inc.