Simple is Best with Cryptocurrency Mining
HashChain Technology Inc.is first and foremost a cryptocurrency mining company. It seems self-evident, but there are many directions a mining company can pivot due to the many business applications of datacenters, mainstream uncertainty of the market (particularly Bitcoin), and the itch many companies have to diversify for that reason. For example, there are mining companies on the market that also offer cloud mining services (also known as mining-as-a-service) to supplement their institutional mining activity, ones that leverage their data centers for other types of businesses in addition to crypto, and some who joined the space because it was trending and an easy way to drive stock price in 2017. HashChain prides our mining operations on simply focusing on mining.
This is beneficial for multiple reasons. First, it allows us to run lean with little overhead. This enables HashChain to avoid liquidating our coins just to keep the lights on and keep the operations running. Due to Bitcoin’s cyclical nature, the value of the revenue we acquire (Bitcoin and Dash) can change. Our Bitcoin strategy currently involves holding coins and investing in Bitcoin’s long game. Any number of major catalysts, including international trade or potential currency wars, could cause Bitcoin to gain bullish momentum and head toward an all-time high again. By holding coins instead of cashing them in, we will be able to take advantage of Bitcoin’s cyclical nature much further down the line and have a significant repository of coins.
The second benefit of a singular focus on mining is our operations are able to grow quickly relative to our peers. When we listed on the TSX Venture Exchange on December 15, 2017, we had 100 Rigs mining DASH cryptocurrency. Since then, we have added 9,395 Rigs for mining Bitcoin in only 7 months through a series of purchases and acquisitions. We are currently mining at 14 megawatts of power, and have acquired an additional 2,500 Rigs, that, once deployed, will boost operations to 17.5 MW of power. HashChain to-date has mined 214 Bitcoin and 275 Dash, and that’s without including a full month of operations for a third of our Rig count.
To understand the growth in our time frame, take a look at other mining companies in a similar position:
|Company||Rigs||Energy Usage||Shares||Share Price||Market Cap|
|HashChain Technologies Inc.||9,395||14 MW||173,457,225||0.14 CAD||24.28M|
|Riot Blockchain Inc.||8,000||11.5 MW||13,650,000||8.43 CAD||$115.06M|
|HyperBlock Inc.||21,500||28.5 MW||243,234,934||0.31 CAD||75.4M|
|HIVE Blockchain Technologies Ltd..||N/A||24.2 MW||332,640,300||0.84 CAD||297.41M|
Share price is as of July 31, 2018
We believe our company is undervalued when compared to Riot Blockchain where we have secured and deployed significantly more Rigs than them in an even shorter timeframe.
Originally, we had diversified like many public mining companies in the space have, but realized that the growth between our blockchain technologies like NODE40 Balance, a cryptocurrency and blockchain accounting solution, and NODE40 Hosting, our masternode hosting service, don’t run parallel to each other. They require two completely different strategies. In order to achieve the scale that miners must reach to remain competitive in today’s market, we decided to spin-off NODE40 to focus on HashChain’s rapid mining growth. This move will allow us to continue growing into an ideal position as cryptocurrency continues to surge. For further details on the proposed spin-out of NODE40, please refer to our news release dated July 3, 2018.
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this blog post, including statements regarding the proposed spin-off transaction and its anticipated benefits, and expectations regarding future operations may constitute forward-looking statements. In making the forward-looking statements in this blog post, the Company has applied certain factors and assumptions that are based on the Company’s current beliefs as well as assumptions made by and information currently available to the Company, including that the Company will receive all required approvals for the spin-off transaction, including stock exchange, court and shareholder approvals, that the spin-off transaction will complete when anticipated by management and will have the benefits anticipated by management. 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, including that that the Company will not receive required approvals for the Spin-off transaction, including stock exchange, court and shareholder approvals, or that such approvals will be delayed, that the spin-off transaction will not complete or, if completed, will be completed later than anticipated by management or will not have the benefits anticipated by management. There can be no assurance that the Spin-off transaction will complete. Readers are cautioned not to place undue reliance on forward-looking statements. 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.