Mr. Patrick Gray reports
Hashchain TECHNOLOGY ENTERS BINDING AGREEMENT INCREASING MINING OPERATIONS TO ESTIMATED 15 MEGAWATTS
Hashchain Technology Inc. has entered into a binding letter agreement to acquire 100 per cent of the outstanding shares of a company in consideration for the issuance of 55 million Hashchain shares at a deemed price of 35 cents per share (equivalent to $19.25-million).
The purchase price will be allocated as follows:
5,000 new S9 Antminer rigs at $1,500 per rig ($7.5-million);
7.5 megawatts installed for $700,000 per megawatt ($5.25-million);
Five-year commitment from existing target management at $300,000 per year ($1.5-million);
15-megawatt facility commitment for four years ($2-million);
Goodwill equals $3-million.
The Hashchain shares will be subject to escrow and will be released as follows:
22 million on the closing date of the acquisition;
11.25 million on installation of the 5,000 rigs in the facility the target currently has an agreement with;
5.25 million in 90 days from the closing date;
16.5 million in 120 days from the closing date.
The acquisition is subject to the approval of the TSX Venture Exchange and due diligence by Hashchain.
The company expects the additional 5,000 rigs to be fully operational by the end of June, 2018. This will be added to the 4,870 rigs that Hashchain has already purchased and committed pending its recent announcement of the acquisition of a company with 1,000 rigs, bringing total rigs to 9,870, which is the equivalent of approximately 15 megawatts.
Based on 770 rigs currently operating, the company mined 27.92 Bitcoins in 38 days of operations, equivalent of 0.735 Bitcoin per day, and has not exchanged any Bitcoin into fiat to date. According to coinmarketcap's website, on April 25, 2018, Bitcoin was valued at $11,737. The mined value of Bitcoin at that price equates to $327,697 over 38 days for the company, which is the equivalent to $11.20 per day per rig.
Hashchain notes there are material costs associated with mining and it will need to complete its next quarterly financial statements to have complete details on such costs. The company will report full details on its costs associated with mining in its financial statements. At this time, the company has not converted the Bitcoin and Dash into fiat currency.
"Hashchain continues to fulfill its commitment to investors with fast-scaling cryptocurrency mining operations in ideal, low-cost data centres, even as we continue to grow our business in other areas of the blockchain market," says Patrick Gray, chief executive officer and founder of Hashchain. "In under a month, the company has increased its rig count by 6,000, and we will continue to build on this momentum and increase the revenue stream from our core mining business."
About Hashchain Technology Inc.
Hashchain is a blockchain 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.
We seek Safe Harbor.
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