The prominent Canada-based crypto mining firm, Hashchain Technology Inc., has confirmed that they made a deal to buy Node40 LLC for a total of $8 million. This deal, according to Hashchain, is still pending approval from TSX Venture Exchange. It is the first deal of its kind in crypto history and marks a significant milestone for Hashchain as they start expanding their own business to reach beyond mining. The deal will provide Hashchain with full control over the team of software designers and engineers from Node40.
Node40 seeks to create a tax declaration software which can be integrated seamlessly with a few select major cryptocurrency exchange platforms all over the world. This software will be a major step forward for cryptocurrencies and their owners as it will smooth the rocky relationship between the industry and tax offices, such as the US’ Internal Revenue Service (IRS). According to reports, the software was specifically tailored to the requirements of the IRS, which means that US crypto users will have an easy and transparent way of reporting their cryptocurrency holdings to the relevant authorities.
The founder and CEO of Hashchain, Patrick Gray, stated that mining would remain an important factor for the company as they are currently investing in more mining rigs to create more revenue. However, Gray noted that this latest acquisition is a large step forward in the company’s ambition to become an internationally acclaimed business that is focused on every aspect of Blockchain technology. Gray added that Hashchain seeks to provide a solution for a huge problem currently faced in the crypto community, which is the obstacle of efficiently reporting cryptocurrency holdings for taxation purposes. Gray cited the latest instances of the IRS subpoena which was issued to Coinbase to highlight the dire need for a transparent tax system when it comes to cryptocurrency.
While the software will be designed to be IRS friendly, Hashchain expects users from all over the world to find Node40 essential to their cryptocurrency transactions. Especially users from countries who face increased regulation in matters of cryptocurrency, such as South Africa, Australia, and Israel. According to the company, they intend to collaborate with tax offices from all over the world in order to create a system that can tailor to the needs of millions of crypto owners all over the world.
In addition to its tax software, Node40 serves as master node host for the dash. A paragraph in the acquisition deal between Node40 and Hashchain states that Node40 will pay Hashchain all master node rewards that it earns over the next 26 months after the deal is closed.
Another condition of the deal states that the co-founder of Node40, Perry Woodin, will serve as Chief Strategy Officer at Hashchain. Woodin stated that the acquisition is an exciting prospect for both parties, as it will allow them to expand the Blockchain-related services that they can provide. Woodin seemed enthusiastic and stated that Node40 would create a greater sense of transparency when it comes to crypto accounting and will hopefully grow at such a rapid pace that it will become the global standard of crypto accounting and tax reporting.