Financing / News from yesterday The company is also pleased to announce the execution of a loan agreement dated July 30, 2018. The loan is a revolving loan secured against the company's cryptocurrency holdings. The loan requires monthly interest only payments, which accrue at annual rates ranging from 10 per cent to 18 per cent depending on the initial loan-to-value ratio. The loan matures 24 months from the initial advance and the maximum amount of finances available is equal to 50 per cent of the company's cryptocurrency value at the date of the draw.
The company's cryptocurrency balance as of today consists of $2.2-million from Bitcoin and $550,000 from Dash, based on coinmarketcap.com prices for both digital currencies on Aug. 15, 2018 ($8,292, $202). Hashchain continues to mine cryptocurrency.
Subsequent increases to the value of cryptocurrency from the time of the initial draw will result in additional financing availability. The loan is expected to provide flexibility from a cash flow perspective, allowing the company to hold coins and take advantage of favourable cryptocurrency fair values in the future.
"This loan will allow us the financial flexibility to continue on our strategic path of building upon our inventory of coins and growing our footprint in the cryptocurrency space," says Patrick Gray, chief executive officer of Hashchain. "With the closing of the acquisition of 2,500 additional Bitcoin rigs, Hashchain's mining operations is expected to total 11,995 rigs consuming approximately 17.5 megawatts of power."