TSXV: CSTR
TORONTO, July 15,
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 U.S. based company (the "Customer") have
executed an equipment hosting agreement (the "Hosting
Agreement") effective July 14,
2021 for up to 8 MW of mining capacity at its award-winning
data centre facility in Utah, USA.
The Company is also pleased to announce the expansion of its
Hashrate and power capacity in Alberta,
Canada.
Equipment Hosting Agreement
Under the terms of the Hosting Agreement, the Company will
provide hosting services to the Customer for up to 8 MW of mining
capacity at its award-winning data centre in Utah, USA.
Highlights of the Hosting Agreement:
- Annual hosting revenues for the Company of USD$960,000.
- Initial term of 12 months, renewing month-to-month
thereafter.
David Jellins, President and
Chief Executive Officer of CryptoStar stated, "We are delighted
that the Customer has selected CryptoStar, and our award-winning
data centre in Utah, USA. We are
looking forward to providing hosting services to the Customer and
we anticipate that this will be the beginning of a long term and
mutually beneficial relationship."
Operations
- The Company currently has an aggregate Hashrate of 53,334 MH/s
from GPU miners and 21,930 TH/s from ASIC miners running at its
data centres.
- The deployment of 53,334 MH/s and 21,930 TH/s of existing
Hashrate using the latest generation GPU and ASIC miners currently
contributes USD$295,539.59 per month
in self-mining revenue for CryptoStar.
(Source: https://whattomine.com/ Mining metrics are calculated
based on and ETH - USD exchange rate of 1 ETH = $1,922.34 and a BTC - USD exchange rate of 1 BTC
= $31,640.39 updated at 2021-07-15
20:32:53 UTC).
- An additional 38,500 MH/s of Hashrate from GPU miners is
currently being relocated to the Company's data centres in
Alberta, Canada and will be
deployed by the end of July 2021. In
addition, 10,000 TH/s of Hashrate from ASIC miners has been
delivered and will be deployed in the Company's data centres by the
end of July 2021.
- Once deployed, the total aggregate Hashrate will be 91,834 MH/s
from GPU miners and 31,930 TH/s from ASIC miners, representing an
increase in self-mining Hashrate of 16% and 130% from GPU and ASIC
miners, respectively, over the past two months.
- The Company is continuing to increase its power capacity at the
first data centre location in Alberta,
Canada under the existing power supply agreement for 30
MW.
Future Growth
- The Company will continue to further expand its self-mining
inventory of mining hardware. Additional miners have been ordered
for delivery in Q3 2021 and further orders for mining hardware will
be placed using astute capital management strategies based upon
prevailing market conditions for delivery in Q3 2021 and Q4
2021
- The Company plans to continue to further expand its data centre
operations in Alberta, Canada by
partnering with large cryptocurrency miners seeking operating
locations in North America. The
Company continues to consider and perform diligence on several
potential transactions and opportunities.
David Jellins, President and
Chief Executive Officer of CryptoStar further stated, "We are
seeing unprecedented levels of demand for power from international
mining organizations, and we are looking forward to taking full
advantage of our power supply agreement in Alberta, Canada at amongst the lowest power
rates available in North
America."
Financial Position
- The Company is in a strong financial position and is well
capitalized
- As at July 15, 2021, the Company
held 136.3 ETH, 35.3 BTC and USD$16.7
million (CAD$20.8 million) in
cash.
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 a long term and mutually beneficial
relationship with Customer, the expected revenue generating
capabilities of the GPU and ASIC miners, the time to deliver and
deploy the GPU and ASIC miners and CryptoStar's plans to continue
to expand its self-mining inventory of mining hardware, increase
its power capacity at its data centre in Alberta, Canada, expand its data centre
operations in Alberta, Canada and
to partner with large cryptocurrency miners. 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.
