# HashChain Technology to Acquire Established Blockchain Technology Company NODE40
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-02-01
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: HashChain Technology Acquires NODE40 Business for
Meta Description: HashChain Technology Inc. announces acquisition of NODE40 LLC, diversifying its cryptocurrency mining strategy with blockchain solutions.
URL: https://financedigest.com/hashchain-technology-to-acquire-established-blockchain-technology-company-node40html

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HashChain Technology Inc. (TSXV: KASH) (OTCQB: HSSHF)  (“ **HashChain”** or the “ **Company**“) today announced that the Company has entered into an agreement to acquire blockchain technology company, NODE40 LLC, (the “NODE40 Business” or NODE40) which includes a team of experienced blockchain experts and software engineers. This acquisition marks HashChain’s initial move to diversify its cryptocurrency mining strategy with blockchain based solutions.

**Terms of the Agreement**

Under the asset purchase agreement for the acquisition of the Node40 Business (the “APA”), HashChain will acquire the NODE40 Business for a purchase price comprised of US$8,000,000 in cash, payable as to US$4,000,000 at closing (subject to a closing adjustment provision), and US$2,000,000 on each of 180 days and one year following the closing date, and a total of 3,144,134 common shares in the capital of HashChain (“Shares”), to be issued in the following amounts and on the following dates (each, an “Issue Date”): (i) 1,800,000 Shares on the closing date, (ii) 700,247 Shares on the date that is 180 days following the closing date; and (iii) 643,887 Shares on the one-year anniversary of the closing date, subject to NODE40s option to receive cash in lieu of up to 30% of the shares issuable pursuant to (ii) and (iii) above to a maximum of $600,000 USD for (ii) and $600,000 USD for (iii) above. The acquisition of the NODE40 Business is subject to customary closing conditions, including the approval of the TSX Venture Exchange.

NODE40’s business comprises two major segments including 1) [Cryptocurrency accounting solution for cryptocurrency trading](https://www.financedigest.com/why-cryptocurrency-trading-will-surpass-forex-trading-in-2023.html "Why Cryptocurrency trading will surpass Forex Trading in 2023"), and 2) Masternode hosting.

**Cryptocurrency Accounting Solution**

NODE40 Balance is a robust [cryptocurrency reporting software that integrates directly with certain major cryptocurrency exchanges](https://www.financedigest.com/verasity-vra-lists-on-tier-1-cryptocurrency-exchange-crypto-com.html "Verasity $VRA Lists on Tier-1 Cryptocurrency Exchange Crypto.com"). Members of the blockchain community transacting in, trading, or mining [digital currency](https://www.financedigest.com/will-central-bank-digital-currencies-deliver-a-more-democratic-payment-industry.html "Will Central Bank Digital Currencies deliver a more democratic payment industry?"), have likely triggered a taxable event and can be unaware of how to properly disclose these transactions to the government. With a cryptocurrency [market size of $537 billion, (more than JP Morgan’s value as reported by CNBC), government intervention into the cryptocurrency market is certain as is the need for more defined accounting solutions](https://www.financedigest.com/the-patient-monitoring-handheld-solutions-market-to-be-constructively-capsized-by-the-digitization.html "The Patient Monitoring Handheld Solutions Market to be constructively capsized by the digitization"). To address a strict regulatory environment, NODE40 uses a coin-holder’s transaction history and analyzes the blockchain to determine accurate valuations for every input and output comprising a transaction. Once a value has been assigned to every transaction, the service can report the current total asset value, income, and any realized [gains or losses](https://www.financedigest.com/ftse-100-up-as-astrazeneca-gains-offset-commodity-losses.html "FTSE 100 up as AstraZeneca gains offset commodity losses"). It is [expected that a greater number of countries will join those that have already imposed a higher](https://www.financedigest.com/italian-hearing-aid-maker-amplifon-expects-higher-2023-earnings.html "Italian hearing aid maker Amplifon expects higher 2023 earnings") degree of regulation like Australia, Israel, South Africa and others. _NODE40 Balance is strategically positioned to work directly with [tax authorities](https://www.financedigest.com/german-tax-authorities-should-show-leniency-to-households-firms-amid-energy-crisis-letter.html "German tax authorities should show leniency to households, firms amid energy crisis – letter") globally to adapt to their specific requirements. Coinbase, one of the leading exchanges for cryptocurrencies with billions of dollars exchanged on its platform, recently received a court order from the Internal Revenue Service (“IRS”), to hand over information on all customers who made a transaction worth $20,000 or more between 2013 and 2015, which is estimated to total 8.9 million transactions impacting more than 14,000 different account holders, according to Forbes.com._

Cryptocurrency mining [remains an important focus](https://www.financedigest.com/european-bourses-steady-as-focus-remains-on-key-economic-data.html "European bourses steady as focus remains on key economic data") for HashChain, as we continue to acquire more Rigs and generate revenue on a large scale. The acquisition of the NODE40 [Business is an important next step of creating a global blockchain](https://www.financedigest.com/top-4-blockchain-business-ideas-for-2022.html "Top 4 Blockchain Business Ideas for 2022") technology company,” said Patrick Gray, CEO and Founder of HashChain. Cryptocurrency accounting and [reporting for tax](https://www.financedigest.com/transforming-vat-how-is-europe-modernising-tax-reporting.html "Transforming VAT: How is Europe modernising tax reporting?") purposes is a major concern in the industry at the moment. The [recent Coinbase subpoena from the IRS highlights the significant need for the software developed](https://www.financedigest.com/title-dystrophic-epidermolysis-bullosa-treatment-market-to-witness-notable-growth-with-recent-developments-and-forecast-by-2030.html "Dystrophic Epidermolysis Bullosa Treatment Market to Witness Notable Growth with Recent Developments, and Forecast by 2030") by NODE40.

**Masternode Hosting Services**

NODE40 also provides Dash masternode hosting services. The [company frees cryptocurrency investors from the technical hurdles and time investment needed](https://www.financedigest.com/why-companies-need-to-rethink-retirement-tips-for-ensuring-a-happy-life-in-later-years.html "Why companies need to rethink retirement – Tips for ensuring a happy life in later years") to run Dash masternodes. Masternodes are full blockchain nodes that run the Dash blockchain and provide services to the network, such as locking transactions with InstantSend and [voting on budget funding](https://www.financedigest.com/norway-wealth-fund-to-vote-for-labour-rights-motion-at-starbucks-agm.html "Norway wealth fund to vote for labour rights motion at Starbucks AGM"). Masternodes require a 1,000 Dash collateral, and an ability to [run 24 hours a day without exceeding a one hour connection](https://www.financedigest.com/connectivity-to-run-through-the-forklift-trucks-market-at-a-cagr-of-7-4-from-2021-to-2031.html "Connectivity to run through the Forklift Trucks Market at a CAGR of 7.4% from 2021 to 2031") loss. Masternodes get paid 45% of the monthly block reward as incentive for providing services to the network. As part of the acquisition of the NODE40 business, NODE40 will pay to HashChain certain masternode rewards earned over the 26 months [following the closing](https://www.financedigest.com/why-google-is-never-closed-for-maintenance-and-how-banks-can-follow-suit.html "Why Google is never closed for maintenance and how banks can follow suit").

**Additions to the HashChain Team** Perry Woodin, co-founder of NODE40 and current HashChain advisor, is now the Company’s new [Chief Strategy Officer](https://www.financedigest.com/future-market-insights-appoints-aditi-basu-as-chief-marketing-officer.html "Future Market Insights Appoints Aditi Basu as Chief Marketing Officer") (CSO). Woodin will be instrumental in making decisions on the direction of HashChain as the company continues to scale their mining operations and invest in other [important businesses](https://www.financedigest.com/importance-of-transparency-and-connections-in-business.html "Importance of Transparency and Connections in Business") related to blockchain technology. Woodin has extensive knowledge of Dash and other forms of cryptocurrency, and is considered an authority in the field of cryptocurrency accounting. He is one of two advisory members to Dash, the twelfth [largest cryptocurrency ranked according to market](https://www.financedigest.com/north-america-to-emerge-as-largest-market-for-softball-equipment-through-2026.html "North America to Emerge as Largest Market for Softball Equipment Through 2026") capitalization, and an active participant in the cryptocurrency community. The acquisition of NODE40 by HashChain means we can [rapidly grow](https://www.financedigest.com/rapidly-growing-end-use-industries-worldwide-is-providing-traction-to-the-13-dioxolane-market-growth-fact-mr-report.html "Rapidly growing End-use Industries Worldwide is Providing Traction to the 1,3-dioxolane Market Growth: Fact.MR Report") our Blockchain service offerings,” said Perry Woodin. We will be able to accelerate the integration of additional incentivized B lockchain [applications into our hosting service](https://www.financedigest.com/service-lifecycle-management-applications-market-to-grow-at-a-cagr-of-6-9.html "Service Lifecycle Management Applications Market to grow at a CAGR of 6.9%"). We expect to expand the NODE40 Balance accounting service to support additional transparent blockchains and integrate with many more exchanges.” Joining Woodin from NODE40 is Sean Ryan, co-founder and Chief Technology Officer (CTO) of NODE40. Ryan is now the CTO of HashChain, bringing his expertise as an [industry leader in the development of blockchain infrastructure services](https://www.financedigest.com/financial-services-industry-blazes-the-trail-for-cloud-migration-post-pandemic.html "Financial services industry blazes the trail for cloud migration post-pandemic") and cryptocurrency accounting. Under Ryan’s technical guidance, HashChain will scale its [service offerings to meet the demand of this growing](https://www.financedigest.com/euro-zone-april-business-activity-grows-on-strong-services-demand-pmi.html "Euro zone April business activity grows on strong services demand – PMI") industry.”HashChain’s acquisition of NODE40 brings together two complimentary organizations in the blockchain industry,” said Sean Ryan. I am excited about leading the technical discussions required to support the rapid growth and acceleration of our infrastructure services and our increasingly important blockchain accounting service.


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