Articles > Block One Announces Sale of Bitcoin Mining Operations to HashChain Technology Inc. for $3,115,000 (8,900,000 HashChain Shares)
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Block One Capital Inc. (TSXV:BLOK) (OTCQB:BKPPF) (Frankfurt:ES3), an investment company focused on high growth opportunities in the blockchain sector, is pleased to announce that it has signed a definitive agreement (the “Agreement”) with HashChain Technology Inc. (TSX-V:KASH) (OTCQB:HSSHF) (“HashChain”) for the sale to HashChain of its 90% interest in TG12 Ventures Inc. (“TG12”).
TG12 owns one-thousand S9 Antminer Rigs (“Rigs”) of which one-hundred are currently operational at a mining facility in Montana, USA, with the remaining nine-hundred expected to be operational by or about the end of the quarter. Pursuant to the Agreement, HashChain will acquire 100% of TG12 in exchange for 8.9 million shares of HashChain (“HashChain Shares”) at a deemed price of $0.35. Block One will receive all of the HashChain Shares issued pursuant to the Agreement.
Block One has agreed to voluntarily escrow its HashChain Shares, whereby 30% of its shares will be released 60 days following the closing date, and 30% will be released 90 days following the closing date. A total of 40% of Block One’s HashChain Shares will not be subject to any voluntary escrow. The transaction is subject to customary closing conditions, including the completion of satisfactory due diligence by HashChain and the receipt of TSX Venture Exchange approval. Closing is expected to occur as soon as possible after the closing conditions are satisfied.
“Based on the data points available to Block One, we drew the conclusion that the future will be dominated by large-scale mining operators who are able to achieve meaningful economies of scale. It became clear that it was unlikely that TG12 would be able to compete effectively in that rapidly approaching future. Therefore, this deal with HashChain allows Block One to receive 8.9 million HashChain Shares and gain exposure to HashChain’s greater anticipated operating scale which, following this transaction, will be a reported total of 4,870 Rigs, which is equivalent of approximately 7 megawatts,” said Sothi Thillairajah, CEO of Block One.
As consideration for the minority shareholder’s interest in TG12, the shareholder will acquire 120 Canaan Avalon B21 Bitcoin Miners and certain related assets owned by TG12, which assignment is planned to take place immediately prior to closing of the Agreement, and Block One will settle an inter-company loan initially advanced to TG12 in connection with the acquisition of the miners.
About HashChain Technology Inc.
HashChain is a blockchain company, and the first publicly traded (TSXV:KASH) (OTCQB:HSSHF) 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.' Diversifying its business strategy beyond crypto mining, the Company acquired NODE40, a blockchain technology company that developed NODE40 Balance, a new SaaS product making cryptocurrency accounting and tax reporting simpler and more accurate. The solution allows cryptocurrency users and traders to accurately report their capital gains and losses. NODE40 is also one of the leading masternode server-hosting providers for the Dash network.
For more information on Block One please visit the Company’s website at www.blockonecap.com.
Chief Executive Officer
This news release contains forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to the completion of the sale of the Company's interest of TG12 and the timing thereof and the Company's expectations regarding HashChain's operating scale. Although Block One believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, including the general acceptability of Bitcoin, cryptocurrency and blockchain, risks associated with regulatory changes, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks and receipt of necessary TSX Venture Exchange approvals. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR ADDITIONAL INFORMATION CONTACT:
Block One Capital Inc.
Office: 604-398-4485; email: email@example.com