TORONTO, Feb. 10,
2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB:
CSTXF) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is pleased to
announce that it has signed a letter of intent (the "LOI")
with a Kansas, USA based energy
company (the "Kansas Partner") effective February 9, 2022 for up to 87.2 megawatts (MW) of
power to be supplied at among the lowest electricity rates in
North America. The Company also
provides an update on operations.
LOI with Kansas Partner
Highlights of the proposed Transaction:
- Under the terms of the LOI, it is anticipated that CryptoStar
and the Kansas Partner will enter into a power supply agreement
(the "Power Supply Agreement") for the first 21.8 MW of
power by February 28, 2022.
- It is anticipated that the first 21.8 MW of power will be
operational within 60 to 90 days from the execution of the Power
Supply Agreement.
- The Kansas Partner currently possesses, controls or has access
to certain sites in Kansas, USA
and, upon approval by applicable regulatory authorities, intends to
generate and supply to CryptoStar an aggregate 87.2 MW of
power.
- CryptoStar has the option to enter into power supply agreements
for up to an additional 65.4MW of electricity, exercisable in
increments of 21.8 MW.
- The Power Supply Agreement will have a term of five (5) years,
which shall automatically renew for additional five (5) year terms
unless terminated in accordance with the terms thereof.
The Company anticipates commencing operations in Kansas, USA in Q2, 2022.
David Jellins, President and
Chief Executive Officer of CryptoStar states, "This LOI with the
Kansas Partner is consistent with the Company's long term expansion
plans into low-cost energy regions in North America and solidifies CryptoStar's
objective to become one of the most reliable, lowest cost crypto
miners and hosting services providers in North America."
Alberta Operations and Termination of Equipment Hosting
Agreements
The natural gas power generation site of 611890 Alberta Inc. DBA
Avila Energy (the "Alberta Partner") remains shut down.
Litigation against the Alberta Partner et al. is ongoing with
respect to the non-compliance with terms of the power supply
agreement for up to 30 MW and damages arising therefrom.
The Company has terminated the equipment hosting agreements
announced on August 31, 2021 for 5 MW
and September 2, 2021 for 10 MW of
mining capacity to be deployed in Alberta, Canada due to the delays in the
deployment of power by the Alberta Partner.
Expansion in Quebec
The Company's subsidiary, Neuro Digital Inc., has commenced its
expansion of operations in Quebec,
progressing on its application with Hydro Quebec to secure the
first 5 MW of power at its data centre.
Operations
- As at February 10, 2022, the
Company has Equipment Hosting Agreements for an aggregate mining
capacity of 12 MW located at its award-winning data centre
facilities in Utah, USA.
- As at February 10, 2022, the
Company has an aggregate self-mining Hashrate of 103,660 MH/s from
GPU miners and 15.6 PH/s from ASIC miners running at its data
centres.
- The 103,660 MH/s and 15.6 PH/s of existing self-mining Hashrate
currently contributes USD $245,513.30
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 = $3,242.08 and a BTC - USD exchange rate of 1 BTC
= $44,711.51 updated at 2022-02-10
12:27:38 UTC).
- The Company continues to plan to redeploy its previously
announced reduced self-mining Hashrate of 53,514 MH/s from GPU
miners and 50.3 PH/s from ASIC miners that were previously running
at the Alberta Partner's site in Alberta,
Canada as expeditiously as possible in Q1, 2022.
- The Company purchased 600 high performance ASIC miners to be
delivered in 6 equal tranches of 100 miners during calendar 2022
commencing in January and ending in June, with the first 100 miners
in transit to the Company's data centres. 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.
Future Growth
- The Company plans to continue to further expand its self-mining
inventory of mining hardware. Additional ASIC miners have been
ordered for delivery in Q1, 2022 and Q2, 2022 and further orders
for mining hardware will be placed using astute capital management
strategies based upon prevailing market conditions for delivery in
Q2, 2022 and beyond.
- The Company plans to continue to further expand its data centre
operations in North America 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.
Financial Position
- The Company is in a strong financial position and is well
capitalized.
- As at February 10, 2022, the
Company held 461.62 ETH, 80.99 BTC and USD$5.0 million (CAD$6.4
million) in cash.
- Additionally, the Company has made payments and deposits for
ASIC miners, buildings and infrastructure equipment of USD$6.1 million (CAD$7.7
million).
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 that the Company and the Kansas Partner
will enter into the Power Supply Agreement for the first 21.8 MW of
power by February 28, 2022, the
anticipated term of the Power Supply Agreement, the anticipated
commencement of the Company's operations in Kansas, USA, CryptoStar's objective to become
one of the most reliable, lowest cost crypto miners and hosting
services providers in North
America, CryptoStar's assumption that damages will arise
from its litigation with the Alberta Partner, the expected revenue
generating capabilities of the GPU and ASIC miners, plans to
redeploy its reduced self-mining Hashrate as expeditiously as
possible in Q1 2022, the time to deliver and deploy the ASIC
miners, CryptoStar's plans to continue to expand its self-mining
inventory of mining hardware, expand its data centre
operations in North America, to
partner with large cryptocurrency miners 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.
