Bitcoin miner (KASH.V) leaps out of the blocks

December 18, 2017, 6:30 a.m HashChain Technology (KASH.V) began trading on the TSX Venture Exchange (“TSXV”).

Two hours later, the trading looks like this:

HashChain is focused on mining Dash and Bitcoin cryptocurrencies. The Company is currently operating 100 Dash mining rigs and it has purchased an additional 770 Bitcoin rigs which should be up and running by January 2018

According to Coinmarketcap, the Cryptocurrency market reached a market cap of $500 billion in December 2017.

Is every “blockchain company” legitimate?

No.

(Read our recent article about UBI Blockchain Internet Ltd.)

When a sector gets this hot you’ll find “Charlie’s Janitorial Services” suddenly re-branded “Charlie’s Blockchain Janitorial Services”.

HashChain’s corporate presentation cites some of its competitors, along with their market cap on November 21, 2017 – about three weeks ago.  Since then three of the companies have gone up in value, and three have gone down.

So the waters are churning and novice paddlers should proceed with caution.

HashChain has raised $4.4 million to date with, 41 million common shares issued and outstanding.  With all 870 rigs in full operation, HashChain’s energy consumption is projected at 1.2 megawatts –about the same as of 900 modern houses.

If that sounds like a lot of power, that’s because it is. We covered this aspect of Bitcoin in detail just a few days ago.

According to the The Guardian, Bitcoin mining chews up more electricity in a year than Ireland, The estimated power use of the bitcoin network, is 30.14TWh a year, which exceeds that of 19 other European countries.

“The strength of a machine is measured in terms of its hash-rate and electricity use. A machine that has a higher hash-rate and uses less electricity than an alternative machine is considered more powerful because it can mine more coins while using less power.”

HashChain’s initial mining operations are in Vancouver, British Columbia.

Vancouver offers all three key factors necessary for efficient digital currency mining:

  • competitive electricity costs
  • access to fast internet
  • cool temperatures.

HashChain has also acquired a Dash Masternode for about USD $280,000 which requires a collateral investment of 1,000 Dash coins.

Based on current prices as of December 15, 2017, the Masternode investment is worth approximately USD $880,000. By holding this investment, Hashchain receives the right to participate in budget funding decisions for the Dash network while also receiving a return on investment in the form of virgin coins and currency appreciation.

In a news update, HashChain warns: “The price of Dash has increased by approximately 9,200% in 12 months. Due to the volatility of the price of Dash, there can be no assurance that the value of Dash will be maintained or increase.”

In the old days, we used to say: “What goes up, must come down”.  With the perpetually buoyant crypto-currency markets, we are revising that to: “What goes up, may come down.”

HashChain’s team is led by CEO Patrick Gray who is “a Certified Blockchain Expert recognized by the Blockchain Council, who has published articles on blockchain technology”.

Gray, sold his first tech start-up to Xerox for $220 million, and later became the youngest executive in Xerox’s history, leading a team of 35 developers in the Xerox Litigation Services division.

He is also the founder of sCube – a niche IT Service provider with over 120 employees that focuses on E-Discovery, E-Licensing, Application Development and IOT.

Other key personnel include:

Nitin Kaushal, Chairman of the Board of HashChain and currently serves as Managing Director, Corporate Finance at PwC Canada.

Herrick Lau, Chief Financial Officer, Director and Corporate Secretary. He is currently the Managing Director of Baron Global Financial Canada Ltd., a merchant-banking firm which provides financial advisory services to private and public companies

Zyshan Kaba, Director acts as legal counsel to companies in the blockchain and cryptocurrency industry.

Todd Montano, Information Technology Manager experienced in building, operating and maintaining cryptocurrency mining rigs.

At Equity Guru, we’ve spent some time talking to the management of HashChain.  One the things we like about the company is the clarity of vision.  They know exactly what they are doing and how they are going to do it.

Computer World reports that job openings for blockchain development technologists have exploded – ranking 2nd among the top 20 fastest-growing job skills – one rank lower than Bitcoin cryptocurrency developers.

Canaccord Genuity predicts that the total stored value of all cryptocurrencies will grow from $16.6 billion in 2017 to $1,132 billion, by 2025.

HashChain is on-trend, and the 1st day of trading suggests that we are not the only party that believes in these people, and this business model.

Full Disclosure:  HashChain is an Equity Guru marketing client, and we own stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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Leo
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you may want to at Datametrex AI Ltd to the mix.