Mr. Patrick Gray reports

CRYPTOCURRENCY TAX SOFTWARE NODE40 SUPPORTS COINBASE USERS JUST IN TIME FOR TAX SEASON

Hashchain Technology Inc.'s acquisition target NODE40 LLC has activated support for Coinbase account holders. Hashchain previously announced the signing of a definitive agreement with NODE40 to acquire 100 per cent of NODE40's assets on Jan. 30, 2018, and the parties are proceeding with closing the acquisition in the coming days. NODE40 is a New York-based blockchain technology company bringing best-in-class tax compliance to cryptocurrency traders globally. The announcement means any Coinbase user can use the NODE40 Balance software-as-a-service to accurately calculate their cryptocurrency capital gains and losses, and report to their respective tax authorities for the 2017 financial year, and all prior years. While there is no formal agreement between NODE40 and Coinbase, the NODE40 Balance addition means Coinbase account holders can request and import their own personal information and transaction history onto a compatible piece of software. Previously, NODE40 allowed users to create a ledger from only a cryptocurrency wallet address, but now it has built the technology to allow users to create a ledger from an exchange. It has chosen Coinbase as its first exchange because it is the biggest exchange in the world. Coinbase users simply type in their Coinbase username and password on NODE40 Balance and it imports all of their past transactions. Then, the capital gains, or losses, are carried into Form 8949, which can be sent to the Internal Revenue Service at tax time.

NODE40 Balance allows users to conduct accurate tax compliance using intuitive, easy-to-use software that analyzes the blockchain, calculates exact net values from each transaction, tracks the cost basis and days carried. Coinbase, the largest digital currency exchange globally, boasts over 13 million users and has financing from the New York Stock Exchange, Bank of Tokyo, Draper-Fisher-Jurvetson, Institutional Venture Partners and Andreesen Horowitz (source: CoinDesk and Coinbase). The New York-based exchange links individual bank accounts to buy and sell access against four leading cryptocurrencies, bitcoin, bitcoin cash, Ethereum and Litecoin.

Perry Woodin, founder of NODE40 and chief strategy officer of Hashchain, said: "We are thrilled to be integrated with Coinbase because of its widespread, mainstream adoption. In December, Coinbase was the No. 1 downloaded iPhone app in the United States and the size of their user base has surpassed that of major on-line brokerage platform, Charles Schwab, which serves about 10 million on-line accounts (source: TechCrunch). The fact that a cryptocurrency exchange like Coinbase surpassed one in traditional finance, especially one as famous as Charles Schwab, stands as a testament to the mass adoption of digital currency. However, there are very few suitable resources for these users to calculate their tax liability. Our solution is much simpler, and more accurate. Some early cryptocurrency adopters avoid regulatory agencies like the IRS, but Coinbase is focused on investors who understand how critical it is to be compliant. NODE40 Balance now offers an easy way for Coinbase customers to view their transactions in a simple and editable ledger."

Patrick Gray, chief executive officer of Hashchain, said: "With increasing regulatory clarity in the blockchain industry, it is imperative that people are aware of their cryptocurrency tax-reporting obligations, and the best way to execute. NODE40 has a great industry solution; they are a true blockchain company with a critical use case, and we look forward to expanding and accelerating the business. Adding Coinbase to NODE40 Balance was an immense undertaking, but now that it has been done, millions of cryptocurrency traders won't have to worry about making any mistakes during tax season."

Since the tax year closed on Dec. 31, many Americans are seeking a way to accurately report their cryptocurrency gains and losses to the IRS. Others simply don't know that they need to. Under IRS Notice 2014-21, it is law for every American to declare any profit (capital gains) or losses, the same way it is applied to property. NODE40 Balance provides users a seamless, intuitive interface to achieve this, even if people have multiple cryptocurrency accounts.

Mr. Woodin said: "Similar to traditional banking, cryptocurrency owners tend to have multiple accounts. As with traditional bank accounts, cryptocurrency accounts will have related transactions. Credits and debits need to be reconciled so the account owner is not over or under reporting gains and losses. NODE40 Balance gives users the ability to see transaction activity across disparate accounts, making reconciliation easier."

The topic of cryptocurrency tax compliance, and non-compliance, made significant headlines across 2017. In November, the most recent development in the Coinbase IRS summons included the handover of 14,000 user accounts to the IRS for investigation. A California federal court has ordered Coinbase to turn over identifying records for all users who bought, sold, sent or received more than $20,000 through their accounts in a single year between 2013 and 2015 (source: Fortune).

"I am certain that the majority of these individuals did not know they were required to report their gains or didn't have the confidence in any pre-existing software, tools or tax-reporting programs. NODE40 Balance is designed specifically to solve all of these problems, and we believe the timing is right. The new economy is here to stay, adoption is coming fast from all directions, and it's evolving by the day," Mr. Woodin concluded.

NODE40 intends to add Balance support for several wallets and exchanges across 2018. It currently services users who have invested in Dash, bitcoin and Litecoin. NODE40 recently announced it was being acquired by Canadian publicly traded company, Hashchain Technology.

About Hashchain Technology Inc.

Hashchain is a blockchain technology 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. 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 870 mining rigs, has purchased 3,000 additional rigs and has entered into a purchase order for an additional 2,000 rigs. Once all rigs are operational Hashchain will be consuming approximately 8.7 megawatts of power.

About NODE40

NODE40 is a blockchain technology company that built NODE40 Balance, a new SaaS (software-as-a-service) product making cryptocurrency tax-reporting much easier, and much more accurate. NODE40 Balance is a popular software platform that allows cryptocurrency users and traders to accurately report their capital gains and losses to the Internal Revenue Service via Form 8949. NODE40 is also one of the leading server-hosting providers for the Dash network. In the now popular world of distributed peer-to-peer (P2P) decentralized blockchain applications, stability is of paramount importance.

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