TSXV: CSTR
TORONTO, Sept. 24, 2021 /CNW/ - CryptoStar Corp. (TSXV:
CSTR) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is pleased to
announce that the Company and a Canadian based company (the
"Alberta Customer")
have executed an equipment hosting agreement (the "Hosting
Agreement") effective September 22,
2021 for 10 megawatts (MW) of mining capacity to be deployed
in Alberta, Canada. The Company is
also pleased to announce that it has ordered 600 high performance
ASIC miners from an affiliate of the Alberta Customer, with a total
Hashrate of 52.8 Petahash per second (PH/s) to be used for
self-mining for the Company.
Equipment Hosting Agreement
Under the terms of the Hosting Agreement, the Company will
provide hosting services and infrastructure to the Alberta Customer
for 10 MW of mining capacity at its data centre locations in
Alberta, Canada.
Highlights of the Hosting Agreement:
- Annual hosting and power revenues for the Company of up to
USD$5.3 million.
- Initial hosting term of 36 months, with the option to renew for
an additional 36-month term.
- Hosting services for the Alberta Customer to commence in Q1,
2022.
David Jellins, President and
Chief Executive Officer of CryptoStar stated, "We are excited that
the Alberta Customer has selected CryptoStar as its hosting
provider. We are looking forward to providing hosting services to
the Alberta Customer and continuing our relationship with their
group."
ASIC Miner Purchase
The Company is proud to build upon its relationship with the
Alberta Customer through the purchase of 600 high performance ASIC
miners. These 600 miners will be delivered in 6 equal tranches of
100 miners during calendar 2022 commencing in January and ending in
June. This will increase the Company's self-mining Hashrate from
ASIC miners by 8.8 PH/s each delivery month, resulting in a total
self-mining Hashrate increase from ASIC miners of 52.8 PH/s.
Once deployed, along with the additional 10 PH/s of Hashrate
from ASIC miners to be deployed by November
30, 2021, as announced on September
15, 2021, the Company's total aggregate self-mining Hashrate
from ASIC miners will be 103.6 PH/s, representing an increase in
Hashrate of 153% from the existing self-mining Hashrate from ASIC
miners announced on September 15,
2021.
The deployment of 103.6 PH/s from ASIC miners would generate
approximately 21.1 Bitcoin per month based on current difficulty
levels. (Source: https://whattomine.com/ Updated at 2021-09-24
11:43:17 UTC).
David Jellins, President and
Chief Executive Officer of CryptoStar further stated, "We are
delighted to build upon our relationship with the Alberta Customer
by ordering high performance ASIC miners through its affiliate.
CryptoStar intends to continue to further expand its self-mining
inventory of mining hardware using astute capital management
strategies based upon prevailing market conditions."
About CryptoStar Corp.:
CryptoStar has cryptocurrency mining operations with data
centres located in the U.S.A. and
Canada. CryptoStar is currently
dedicated to becoming one of the lowest cost cryptocurrency
producers in North America and a
major supplier of GPU and ASIC miners worldwide.
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.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as, "expects", "is expected", "anticipates", "intends",
"believes", or variations of such words and phrases or state that
certain actions, events or results "may" or "will" be taken, occur
or be achieved. Forward-looking statements include those relating
to CryptoStar's expectation of continuing its relationship with the
Alberta Customer's group, the expected revenue and timing to
commence the hosting services associated with the Hosting
Agreement, the expected Bitcoin revenue generating capabilities of
the ASIC miners, the time to deliver and deploy the ASIC miners,
CryptoStar's plans to continue to expanding its self-mining
inventory of mining hardware and CryptoStar's plans of becoming one
of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and
ASIC miners worldwide. Forward-looking statements are not a
guarantee of future performance and are based upon a number of
estimates and assumptions of management in light of management's
experience and perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances. Actual
results, performance or achievement could differ materially from
that expressed in, or implied by, any forward-looking statements in
this press release, and, accordingly, you should not place undue
reliance on any such forward-looking statements and they are not
guarantees of future results. Forward-looking statements involve
significant risks, assumptions, uncertainties and other factors
that may cause actual future results or anticipated events to
differ materially from those expressed or implied in any
forward-looking statements. Except as required by law, CryptoStar
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE CryptoStar Corp.