(via TheNewswire)
VANCOUVER, BC / TheNewswire / January 28, 2019 - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV: KASH; OTCQB: HSSHF) today announced its financial and operating results for the quarter ended November 30, 2018.
"Despite challenges in the cryptocurrency market, the steps we have taken this past quarter served to align our plan of focusing solely on our mining operation and reduce G&A expenses going forward," said Patrick Gray, CEO of HashChain. "Acquisitions we made in prior periods to increase our inventory of mining rigs will allow us to ramp up in the future, as though cryptocurrencies continue to display volatility, we remain optimistic on the long-term prospects of crypto and blockchain as a revolutionary technology."
Quarterly Highlights
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- 8,395 Bitcoin mining rigs in operation.
- Increased total coins mined over previous quarter production by 15%.
- Recognized operating revenue totaling $2.7 million from digital currency mining and Dash Masternode rewards.
- Strategically concentrated entire mining operation and rig inventory to Buffalo, New York data centre.
- Extinguished outstanding debts owed through the completion of the sale of the NODE40 software (see below).
On November 14, 2018, in order to relieve the Company of outstanding debt, minimize G&A expenses, and emphasize the vision of concentrating solely on cryptocurrency mining, the Company announced that its wholly owned subsidiary Global Crypto Public Accounting Ltd. had entered into an Asset Purchase Agreement to sell the NODE40 operations.
The terms of the Asset Purchase Agreement between Global and the Buyer were as follows:
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- Global agreed to deliver to the Buyer all assets and proprietary software related to the NODE40 platform.
- In exchange for the assets related to the NODE40 software, the Buyer agreed to forgive the US$5.2m of debt owed to it by Global.
- Global delivered to the Buyer an amount equal to CAD$400,000 less expenses paid for by Global from the period beginning on November 1, 2018 and ending on the closing date of the agreement.
Financial Information
The Company's net loss resulting for the three months ended November 30, 2018 was $3,341,785. Losses from unrealized currency revaluation and from the disposal of digital currencies reflected in the period ended totaled $338,569 and $387,676, respectively.
General and administrative expenses for the aforementioned three months were $1,312,899, which included a non-cash charge for share-based compensation of $758,700. 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 months ended November 30, 2018 were $3,489,782, 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. Included in this total is a non-cash charge for depreciation of $728,655.
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.
Outlook
The Company continues to execute on its strategy to grow as a market leader in the blockchain infrastructure industry and will increase operations by bringing its digital currency mining footprint to 17.5 megawatts of computing power during 2019.
HashChain has deployed 8,395 mining rigs across its data centers. Upon deployment of the remaining 3,500 rigs previously acquired, the Company will have a total of 11,895 in operation.
The sale of the NODE40 software platform served to relieve the Company of outstanding debt and will greatly minimize G&A expenses going forward, as HashChain reemphasizes its vision of concentrating solely on cryptocurrency mining.
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 8,395 Bitcoin Rigs with an additional 3,500 Rigs to be deployed from its previously announced acquisitions. Once all Rigs are operational, HashChain's mining operations will consist of 11,895 Rigs consuming approximately 17.5 megawatts of power.
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.
Paul Ciullo
Chief Financial Officer
607-760-7870
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: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the performance of the Rigs, the expected consumption of 17.5 megawatts of power and the Company's expected operation of a total of 11,895 Rigs may constitute forward-looking statements. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should" or "would" occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, that the Company will successfully operate an aggregate of 11,895 Rigs and such operation, including expected energy consumption, 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, that the Company will not successfully operate a total of 11,895 Rigs and that the Rigs will not be performing optimally as anticipated by management. Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. 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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