TORONTO, May 13, 2019 /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 financial year ended
December 31, 2018. For the full
consolidated financial statements and management discussion and
analysis for the financial year ended December 31, 2018, please visit SEDAR at
www.sedar.com. All values in this news release are in United States Dollars unless otherwise
specified.
- Revenue of $15.0 million in 2018
compared to $10.3 million in
2017.
- Adjusted EBITDA of $4.2 million
in 2018 compared to $7.4 million in
2017.
- 1,999 Bitcoin mined in 2018 compared to 2,200 in 2017.
|
2018
|
2017
|
|
INCOME FROM MINING
OF DIGITAL CURRENCY
|
|
|
|
Income from mining of
digital currency
|
15,010,675
|
10,325,668
|
|
Impairment or realized
gain (loss) of digital currency
|
(1,281,944)
|
(63,554)
|
|
Direct operating and
maintenance costs
|
(7,283,140)
|
(1,504,753)
|
|
Mining
profit/loss
|
6,445,591
|
8,757,361
|
|
Mining profit
margin
|
43%
|
85%
|
|
Other Operating
Expenses
|
(2,265,489)
|
(1,346,595)
|
|
|
|
|
Gross
profit/loss
|
4,180,102
|
7,410,766
|
|
|
|
|
Depreciation
|
(10,888,345)
|
(2,047,028)
|
|
Foreign exchange
(gain)
|
(40,687)
|
56,498
|
|
Listing
expense
|
(1,086,038)
|
—
|
|
Impairment on mining
equipment
|
(12,390,741)
|
—
|
|
|
|
|
Net income (loss)
before income taxes
|
(20,225,709)
|
5,420,236
|
|
Income taxes
(recovery)
|
(146,770)
|
1,734,360
|
|
Net income (loss)
and comprehensive income (loss)
|
(20,078,939)
|
3,685,876
|
|
|
|
|
Adjusted
EBITDA
|
4,180,102
|
7,410,766
|
|
Adjusted EBITDA
margin
|
28%
|
72%
|
|
(Loss) earnings per
share, basic and diluted
|
(0.10)
|
0.025
|
|
Weighted average
shares, basic and diluted
|
205,931,531
|
146,544,143
|
|
Bitcoin
mined
|
1,999
|
2,200
|
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)
- "EBITDA" 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.
"Cost per bitcoin" represents cost of revenue excluding
depreciation, divided by the number of bitcoin mined in the
period.
SOURCE CryptoStar Corp.