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HashChain Technology (OTC:HSSHF) releases Q4, FY18 results – Net $37M+ loss

Tony Zerucha

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HashChain Technology (TSXV:KASH) (OTC:HSSHF) this week announced its results for the fourth quarter and full year ended Aug. 31.

“In our first full year of operations we have successfully managed to reach our organizational goal of becoming a leader in the blockchain technology space,” CEO Patrick Gray said. “Despite volatility in the cryptocurrency market, the strategic acquisitions we made throughout the year enabled us to significantly grow our asset base and has put us in a favorable position to continue to grow our inventory of newly minted coins.”

Quarterly highlights

  • Deployed 5,000 Bitcoin mining rigs;
  • Increased total digital currency mining rigs owned to 11,995;
  • Increased total coins mined over third quarter production by 68 percent; and
  • Recognized operating revenue totaling $2,102,397 from digital currency mining and Dash Masternode rewards.

FY 2018 highlights

  • Generated revenues of $3,369,846 from mining of digital currencies and Dash Masternode rewards;
  • Mined more than 600 newly minted coins, including fourth quarter production of approximately 400 coins;
  • Raised gross proceeds of $30 million of growth capital during the year to finance rapid development and future growth opportunities and investments;
  • Through purchases and acquisitions increased digital currency mining power in production to 15 MW; and
  • Net loss of $37,745,973 for the year, including one-time equipment impairment charge of $16.5M and loss from discontinued operations related to the sale of the NODE40 software of $9.3M.

A comprehensive discussion of HashChain’s financials and operations are provided in the HashChain’s Management Discussion & Analysis and Financial Statements filed with SEDAR and can be found on www.sedar.com.

Recent developments

On Nov. 14, 2018, through its wholly owned subsidiary, Global Crypto Public Accounting LTD., HashChain entered into an asset purchase agreement to sell its proprietary software and assets related to the NODE40 software platform in exchange for the buyers agreeing to extinguish the US$5,200,000 of loans and convertible loans payable from the acquisition of the NODE40 assets.

Outlook

HashChain continues to execute on its strategy to grow as a market leader in the blockchain infrastructure industry and will increase operations by bringing its digital currency mining footprint to 17.5 megawatts of computing power in the first half of 2019.

The sale of the NODE40 software platform served to relieve HashChain of outstanding debt and will greatly minimize G&A expenses going forward, as HashChain reemphasizes its vision of concentrating solely on cryptocurrency mining, the company said in a statement.

The material is not to be construed as an offer or a recommendation to buy or sell a security. See full Terms of Service.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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