Hashchain Technology Inc. TSX-V: KASH has deployed 770 mining rigs. This brings the company’s total number of operating rigs to 870, and a total of 1.23 megawatts (MW) toward cryptocurrency mining.
This latest installation demonstrates continued momentum for the company and brings the first rigs on-line in the 20 MW mining facility in Montana, United States. As previously disclosed, an additional purchase order for 3,000 rigs has been completed with the manufacturer, with the first shipment of 2,000 expected to arrive at the end of March followed by 1,000 expected at the end of April. Upon deployment of all the 3,000 purchased rigs, Hashchain will have a total of 3,870 rigs in operation and be mining with approximately 5.8 MW of power.
This deployment closely follows the company’s acquisition of assets of NODE40 on Feb. 15, 2018, consisting of: a cryptocurrency tax software for coin holders, NODE40 Balance, a masternode hosting service for Dash cryptocurrency, NODE40 hosting, which alleviates the time requirement and technical hurdles for crypto investors, and the economics of an additional 10 masternodes for 36 months.
The Dash network currently rewards each masternode holder 6.67 Dash per month, or 0.22 Dash per day. 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. At the current reward rate of 6.67 Dash per month, the 10 masternodes would be expected to receive a total of approximately 880 coins per year, equating to a value of $674,379 per year based on the Dash-to-CDN conversion rate of $766.34 as at March 5, 2018. Actual results will vary and will depend on several factors including the rewards rate, the price of Dash and the timing of any conversion of Dash to fiat currency by the company. The company does not currently plan to convert the Dash from the masternodes into fiat, and the price of Dash will vary significantly due to its price volatility and the Dash could be converted into Canadian dollars (or any other fiat currency) at a price that is lower than the current price if the company’s plans change.
The purchase of the NODE 40 business is part of Hashchain’s move to diversify its business beyond cryptocurrency mining with additional blockchain-based solutions.
“The agile deployment of the 770 rigs highlights Hashchain’s commitment to executing on its stated strategy to scale mining operations,” said Patrick Gray, chief executive officer and founder of Hashchain. “This is a key step toward realizing the company’s goal of operating at 5.8 megawatts by the middle of 2018. The recent addition of NODE40 also fits well with our current operations and adds additional revenue streams. Offering a blockchain accounting software enables Hashchain to pivot toward a full-scale blockchain company and become an advocate for coin holders as the market comes to terms with the inevitability of regulation.”
On March 5, Hashchain announced NODE40 Balance expanded services globally to meet the needs of cryptocurrency investors, as many countries tighten their tax laws around cryptocurrency transactions. Balance is a software-as-a-service (SAAS) that helps cryptocurrency users to meet tax requirements in their respective countries by analyzing the blockchain to retroactively report capital gains and losses for Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash. A user uploads their transactions on the coinbase exchange, a wallet or a cryptocurrency blockchain, and Balance calculates exact values of each transaction, tracks the cost basis and days carried. Once the gains and losses have been located, Balance automatically inputs the information on a worksheet that can be shared with a chartered professional accountant to file taxes in a traditional manner.
New addition to the Hashchain team
Additionally, Hashchain has welcomed George E. Kveton to its executive team as chief commercial officer, where he will lead operating strategy and corporate development. With over 20 years of experience leading merger and acquisition for Fortune 500 companies, and past roles that have spanned startups in Silicon Valley, Israel and China. He has extensive experience engaging with governments on fiscal and regulatory affairs and is proficient in strategy development and implementation in highly regulated industries.
“Hashchain is expanding its commitment and capabilities as a global leader in blockchain,” said Mr. Kveton. “As the company scales, it will be critical to understand the intricacies of the new environments utilizing its technology. My experience working in many highly regulated industries will be a great asset to the company as blockchain and cryptocurrency regulations begin to surface and become increasingly stringent.”
About Hashchain Technology Inc.
Haschain is a blockchain company, and the first publicly traded Canadian cryptocurrency mining company to file a final prospectus supporting highly scalable and flexible mining operations across all major cryptocurrencies. Haschain 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. Haschain currently operates 100 Dash mining rigs, has received 770 Bitcoin rigs and has purchased an additional 3,000 rigs. Once all rigs are operational Haschain will be consuming approximately 5.8 megawatts of power.