(via TheNewswire)
VANCOUVER - TheNewswire - December 23, 2019 - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV:KASH) (OTC:HSSHF) today announced its results for the fourth quarter and full year ended August 31, 2019.
Quarterly Highlights
- Mined approximately 300 newly minted Bitcoin.
- Recognized operating revenue totaling $4 million from digital currency mining.
- Incurred a net loss of $451,096 for the quarter.
FY 2019 Highlights
- Generated income of $11,503,102 from mining of digital currencies.
- Mined 1,422 newly minted Bitcoin.
- Extinguished outstanding debts owed through the completion of the sale of the NODE40 software platform
- Incurred a net loss of $8,594,036 for the year.
A comprehensive discussion of HashChain's financials and operations are provided in the Company's "Management Discussion & Analysis and Financial Statements" filed on SEDAR and can be found under the Company's profile on www.sedar.com.
Outlook
On March 28, 2019, the Company announced that it has entered into a Definitive Agreement with shareholders of Digihost International, Inc. ("Digihost") whereby the business and assets of the Company and Digihost will be combined by way of a share exchange between the Company and shareholders of Digihost (the "Proposed Transaction"), constituting a "reverse-takeover" of the Company by Digihost under the policies of the TSX Venture Exchange.
Due to increasing costs of cryptocurrency mining and volatility in the valuation of mined-cryptocurrencies, the hosting expenses paid by HashChain to its colocation facility per coin mined are presently greater than the value of the coins mined. Completion of the Proposed Transaction will vertically integrate the hosting business to be acquired by Digihost with the mining operations of HashChain, such that the cost of mining is significantly reduced.
Management of the Company anticipates that the completion of the Proposed Transaction would provide a number of benefits to HashChain, including:
- reduced costs of cryptocurrency mining through the vertical integration of HashChain's operations and the termination of the hosting services agreement with Bit.Management, LLC, who the Company currently pays for rent for the physical space of its rigs and for the electricity used in its cryptocurrency operations;
- release from accrued liabilities owing to Bit.Management, LLC pursuant to the hosting services agreement; and
- increased access to capital as a result of the minimum $5.4 million concurrent financing of Digihost to be completed prior to completion of the Proposed Transaction.
Upon completion of the Proposed Transaction, the mining operation will have 12,895 Bitcoin mining rigs with the ability to expand to 17.5 MW of computing power with electricity at an average all-in cost of USD$0.05/kWh. The operating facility is located in Buffalo, New York, with over 70,000 square feet under a five-year lease and an option to lease additional facility space totalling 240,000 square feet after 3 years. HashChain will focus on validation through mining, hosting solutions and blockchain software solutions.
The Proposed Transaction cannot close until the required shareholder approvals are obtained and there can be no assurance that the Proposed Transaction will be completed as proposed or at all. The completion of the Proposed Transaction is subject to a number of conditions precedent (as described in prior press releases of the Company), including approval of the Proposed Transaction by the TSX Venture Exchange (the "Exchange") and the shareholders of HashChain. Review of the Proposed Transaction by the Exchange remains ongoing.
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
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, the Company's expected operation of a total of 11,895 Rigs and the completion of the Proposed Transaction 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, that the Proposed Transaction will be completed and the anticipated benefits of the Proposed Transaction and the development of the resulting issuer's business and operations. 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, or the Proposed Transaction does not complete. 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.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has in any way passed upon the merits of the Proposed Transaction and associated transactions and neither of the foregoing entities has in any way approved or disapproved of the contents of this press release.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
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