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HashChain Technology Completes Previously Disclosed Acquisition of Cyrptocurrency Mining Companies

V.DGHI

(TheNewswire)



  

HashChain is Expected to Operate 17.5 Megawatts of Computing Power after Deployment of these additional 2,500 Rigs and the Deployment of the Previously Announced 1,000 Rigs

VANCOUVER, BC / TheNewswire / August 17, 2018 – HashChain Technology Inc. ("HashChain" or the "Company") (TSXV: KASH; OTCQB: HSSHF) is pleased to announce it has closed its acquisition of two cryptocurrency mining companies (the “Targets”) contributing an aggregate total of 2,500 additional Antminer S9 Rigs (“Rigs”) to HashChain’s existing 9,495 Rigs. HashChain acquired all of the issued and outstanding shares of the Targets for an aggregate of 57.4 million HashChain shares (the “HashChain Shares”) at a deemed price of $0.17 per share.

HashChain currently operates 8,495 Rigs at approximately 13 megawatts (“MW”) of computing power in the Company’s Vancouver, Montana, and Buffalo mining facilities. Upon deployment of an aggregate total of 11,995 Rigs, including the recently acquired 3,500 Rigs, HashChain is expected to be mining with approximately 17.5 MW of power.

The Company is also pleased to announce the execution of a loan agreement dated July 30, 2018 (the “Loan”).  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 10-18% depending on the initial loan to value ratio. The Loan matures 24 months from the initial advance and the maximum amount of funds available is equal to 50% of the Company’s cryptocurrency value at the date of the draw.

The Company’s cryptocurrency balance  as of today consists of  CAD $2.2M from Bitcoin and CAD $550,000 from Dash, based on coinmarketcap.com prices for both digital currencies on August 15, 2018 (CAD $8,292, CAD $202). HashChain continues to mine cryptocurrency.

Subsequent increases to the value of cryptocurrency from the time of the initial draw will result in additional funding availability. The Loan is expected to provide flexibility from a cash flow perspective, allowing the Company to hold coins and take advantage of favorable 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, CEO 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.

 

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 and 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 11,995 Rigs consuming approximately 17.5 megawatts of power. HashChain also acquired two Dash Masternodes, which requires a collateral investment of 1,000 DASH coins for each Masternode.  

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

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: 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 successful delivery and installation of an aggregate of 3,500 Rigs, the expected consumption of 17.5 megawatts of power, the Company’s expected operation of a total of 11,995 Rigs, the cash flow flexibility expected to be provided by the Loan and expectations regarding future operations 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, including that the Company will successfully receive delivery and install an aggregate of 3,500 Rigs, that the Company will successfully operate the Rigs and such operation, including expected energy consumption, will be consistent with management’s expectations, the Loan will operate and provide reliable access to funds and that the Company will successfully operate a total of 11,995 Rigs.  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 receive delivery and install an aggregate of 3,500 Rigs, that the Company will not successfully operate a total of 11,995 Rigs, that the Rigs will not be performing optimally as anticipated by management and that the Loan will not provide reliable access to funds 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.

 

Copyright (c) 2018 TheNewswire - All rights reserved.



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