VANCOUVER, April 25, 2018 /CNW/ - HashChain
Technology Inc. ("HashChain" or the "Company") (TSXV:
KASH; OTCQB: HSSHF) today announced its financial and operational
results for the quarter ended February 28,
2018. HashChain is a global blockchain company with
cryptocurrency mining, accounting, and Masternode hosting services
that began operations on November 3,
2017 and subsequently listed for trading on the TSX Venture
Exchange on December 18, 2017. As of
February 28, 2018, the Company had
two wholly owned subsidiaries, HashChain Mining LLC and Global
Crypto Public Accounting Ltd.
Total Company assets increased to $38,278,744 as of February
28, 2018 from $4,405,916 at
November 30, 2017. The significant
assets consisted of $7,394,705 cash,
mining Rigs of $3,283,792, a cash
deposit of $10,444,119 for the
purchase of mining Rigs, Goodwill and Intangible Assets totaling
$14,913,807 related to the
acquisition of the assets of NODE40, a cryptocurrency accounting
and Masternode hosting service company.
"HashChain achieved substantial asset growth in only a
four-month period of operation," says Patrick Gray, CEO of
HashChain. "From the onset, the Company planned to rapidly scale
our mining in tandem with diversifying our business strategy to
incorporate other blockchain related businesses. With the current
and projected Rig purchases and our acquisition of NODE40, we've
positioned ourselves to make a large impact in blockchain and
cryptocurrency markets in 2018 and beyond."
Quarterly Highlights
- Acquired the assets of blockchain technology company NODE40,
including the software code for Node40 Balance (a
cryptocurrency accounting software) and Node40 Hosting,
which provide Dash Masternode hosting services as well as the
rights to receive payments from ten Dash Masternodes for a period
of 36 months.
- Raised $29.7 million through a
bought deal private placement to finance expansion and allow for
future investment growth opportunities.
- Received 770 Bitcoin mining Rigs and purchased an additional
3,000.
- Cash position increased by $6,763,358.
- Operating revenues of $216,534
from digital currency mining, Dash Masternode rewards and
Node40 Masternode hosting revenue.
Recent Developments
Since the end of the fiscal second quarter, the Company deployed
770 Bitcoin mining Rigs on March 8,
2018.
On March 13, 2018 HashChain
expanded their Node40 Balance cryptocurrency accounting
software to integrate with the Coinbase Exchange and support
cross-wallet transactions.
On April 3, 2018, the additional
order for 3,000 Rigs was delivered to the Company. On April 23, 2018 the Company announced that it had
entered into a letter agreement to acquire a company with 1,000 new
S9 Antminer Rigs. Upon deployment of all Rigs, HashChain will have
over 6.4MW of power dedicated to cryptocurrency mining.
Financial Information
Due to the acquisition of NODE40 closing on February 15, 2018, the Company's revenues for the
quarter of $216,534 included only
thirteen days of income attributed to Node40 services.
The Company's net losses resultant from continuing operations
for the three and six months ended February
28, 2018 were $4,685,105 and
$5,325,564, respectively, which
included one-time charges associated with the acquisition of NODE40
of $1,009,101. These acquisition
costs represent non-recurring items.
General and administrative expenses for the aforementioned three
and six months were $3,550,361 and
$4,877,872 respectively, which
included non-cash charges for share-based compensation of
$82,174 and $499,409 and depreciation of $37,816 and $74,278
for each of the three and six months. Ongoing general and
administration expenses relate to the Company's growth plans and
compliance costs related to operating a public company.
Operating and maintenance costs for the three and six months
ended February 28, 2018 were
$26,207 and $63,626, respectively, consisting primarily of
fees paid under a master services agreement include: electricity,
daily monitoring and maintenance, facility costs and all other
costs directly related to the maintenance and operation of the
Company's mining equipment.
A comprehensive discussion of HashChain's financials and
operations are provided in the Company's "Management Discussion
& Analysis and Financial Statements" filed with SEDAR and can
be found on www.sedar.com.
"We have the foundation in place to grow HashChain into a
full-scale blockchain service provider, building on mining and
regulatory solutions to help institutional and personal investors
in this truly disruptive and promising technology," continues Gray.
"In the coming months, we plan to invest in additional Rigs and
deployment, while expanding our blockchain accounting business with
new services and implementation on further exchanges."
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 also acquired a Dash Masternode, which requires a
collateral investment of 1,000 DASH coins. Diversifying its
business strategy beyond crypto mining, the Company recently
acquired NODE40, a blockchain technology company that developed
NODE40 Balance, a new SaaS product making cryptocurrency accounting
simpler and more accurate. The solution allows cryptocurrency users
and traders to accurately track their 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, and an office in Vancouver,
British Columbia.
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 Rigs, including the anticipated
benefits to the Company of the Transactions, the performance of the
Rigs acquired by the Company, the expected timing of delivery and
installation of 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 the Rigs deployment.
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 Rigs will not perform 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.
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SOURCE HashChain Technology Inc.
