HashChain Technology Inc. (TSXV:KASH) projects $90 million revenue and $78 million in EBITDA in 2018
SmallCapPower | December 19, 2017: HashChain Technology Inc. (TSXV:KASH), a cryptocurrency miner, debuted on the TSX Venture exchange at $1.50 on Monday morning and closed the day at $2.45, a hefty premium of 1533% to the offering price of $0.15 per share. HashChain Technology has so far raised $4.4 million in preparation for the listing, with the latest $1.18 million raised by issuing 7.9 million shares at $0.15 per share as per the prospectus. The Company has a total of 41.18 million shares outstanding, translating into a market cap of ~$101 million based on Monday’s closing price of $2.45.
HashChain Technology joins six other crypto/blockchain listed Canadian players including HIVE Blockchain Technologies (TSXV:HIVE) that is a direct competitor focused on cryptocurrency mining. Over the next year, the number of proposed crypto-related listings in Canada is expected to be a staggering 50 companies, as per data from GMP Capital Inc. The rush to the crypto-related business mirrors the sharp rise in Bitcoin and other digital currencies over the past year. According to Coinmarketcap, the total market capitalization of all cryptocurrencies reached a whopping $642 billion on Monday with Bitcoin alone contributing $318 billion. This whopping cryptocurrency market has been driving the cryptocurrency mining revenues, which reached $2.1 billion in 2016 from $1.5 billion in 2015.
Incorporated as Chortle Capital Corp. in February 2017, the Company changed its name to HashChain Technology Inc. on September 18, 2017, when it acquired HashChain Mining LLC, a New York-based cryptocurrency mining company. Following the acquisition, HashChain Technology discontinued its operations in the U.S. and started mining operations in Vancouver, Canada. HashChain Technology is initially focused on mining Dash and Bitcoin cryptocurrencies utilizing Application Specific Integrated Circuit mining rigs. The Company currently mines 45 Dash coins with 100 rigs and plans to mine Bitcoin in January 2018, and has purchased 770 rigs for the purpose. The Company has ambitious expansion plans of increasing rigs to 13,400 in 2018, 26,600 rigs by 2019, and 46,600 rigs by 2020, for a total mining capacity of 40 MW by 2019, from the current 1.23 MW.
HashChain Technology’s breakeven price could be less than $5K per Bitcoin. If the Company meets or come close to projections of $90M revenue and $78M in EBITDA in 2018, it could trade at 10x sales (premium b/c FCF), or the size of HIVE Blockchain.
