A publicly traded Canadian crypto miner has just made a $8 million bet that all bitcoin users around the world will eventually be compelled to report their transactions to the taxman, and that they will help handling this oftentimes complex process.
Bitcoin ‘Turbo Tax’
Canadian cryptocurrency mining company Hashchain Technology Inc. (TSXV: KASH) has announced that it reached a deal to acquire Node40 LLC for $8 million subject to the approval of the TSX Venture Exchange. This acquisition marks Hashchain’s first move to diversify its cryptocurrency business beyond just mining and will give it control over Node40’s team of experienced software engineers.
Node40 develops a cryptocurrency reporting software that integrates directly with a few major bitcoin exchanges. It thus can help American bitcoin users, traders and miners disclose their transactions to the IRS for tax liability purposes. As we reported at the time, prior to the release of this “IRS-friendly” crypto software, there were very few options for US bitcoiners to easily submit their taxes.
“Cryptocurrency mining remains an important focus 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 technology company,” said Patrick Gray, CEO and Founder of Hashchain. “Cryptocurrency accounting and reporting for tax 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 by Node40.”
Beyond the IRS
The buyers of Node40 expect that a greater number of countries will join those that have already imposed a higher degree of regulation like Australia, Israel, South Africa and others. The solution, they said, is strategically positioned to work directly with tax authorities globally to adapt to their specific requirements.
Node40 also provides masternode hosting services for the dash cryptocurrency. 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.
As part of the deal, Perry Woodin, co-founder of Node40, is now Hashchain’s new Chief Strategy Officer (CSO). “The acquisition of Node40 by Hashchain means we can rapidly grow our Blockchain service offerings,” said Perry Woodin. “We will be able to accelerate the integration of additional incentivized Blockchain applications into our hosting service. We expect to expand the Node40 Balance accounting service to support additional transparent blockchains and integrate with many more exchanges.”
How do you report your bitcoin transactions to taxman? Tell us in the comments section below.
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