CSTR CryptoStar Corp

TORONTO, Nov. 27, 2018 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce its financial results for the third quarter ended September 30, 2018. For the full condensed consolidated interim financial statements and management discussion and analysis for the third quarter ended September 30, 2018, please visit SEDAR at www.sedar.com. All values in this news release are in United States Dollars unless otherwise specified.

• Revenue of $3.9 million for Q3 and $13.0 million for the nine months ended September 30, 2018.
• Adjusted EBITDA of $1.17 million for Q3 and $6.1 million for the nine months ended September 30, 2018.
• 580 Bitcoin mined in Q3.

CryptoStar currently operates a total of 11,970 miners in the U.S.A., Canada and Iceland with a total Hashrate of 142 PH/s utilizing 15.8 MW of power.

CryptoStar has mined 1,582 Bitcoin for the nine months ended September 30, 2018.

Current Market Conditions and Liquidity

Although the price of Bitcoin was relatively stable from early September 2018 to mid-November 2018, a sharp decline in the price of Bitcoin in recent weeks has put a strain on the Company's liquidity.

The ability of the Company to continue as a going concern and to realize the carrying value of its assets and discharge its liabilities and commitments when due is dependent on the Company generating revenue and debt and/or equity financing sufficient to fund its cash flow needs. Current circumstances indicate the existence of material uncertainty that casts significant doubt on the ability of the Company to meet its business plan and its obligations as they come due, and accordingly the appropriateness of the use of the accounting principles applicable to a going concern.

The Company is exploring a variety of financing alternatives in an effort to ensure that the Company has sufficient liquidity to meet its near term financial needs.

About CryptoStar Corp.:

CryptoStar has one of the world's largest cryptocurrency mining operations with data centres located in the U.S.A., Canada and Iceland. CryptoStar is currently dedicated to further expansion into low cost energy regions in North America and around the globe.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-GAAP Measures

This press release presents certain non-GAAP ("GAAP" refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company's performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.

• "EBITDA" (Earnings before Interest, Taxes, Depreciation, and Amortization) represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
• "Adjusted EBITDA" represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on remeasurement of digital assets, and costs associated with one-time transactions (such as listing fees).
• "Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of revenue.
• "Mining Profit" represents gross profit (revenue less cost of revenue), excluding depreciation.
• "Mining Profit Margin" represents Mining Profit as a percentage of revenue.

Cautionary Statement Regarding Forward-Looking Information:

This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer's business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer's prospective financial performance or financial position.

CryptoStar has made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties, to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to: adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the cryptocurrency industry in general. The foregoing list of material risk factors and assumptions is not exhaustive.

CryptoStar assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.

SOURCE CryptoStar Corp.