TORONTO, Oct. 7, 2022
/CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF)
("CryptoStar" or the "Company"), a cryptocurrency
mining and data centre operator, announces that it has terminated
the letter of intent (the "LOI") with a Kansas, USA based energy company (the
"Kansas Partner") effective October
6, 2022. The Company also provides an update on
operations.
Self-Mining Operations
- As at October 7, 2022, the
Company has an aggregate self-mining Hashrate of 92.24 PH/s from
ASIC miners running at its data centres.
- The 92.24 PH/s of existing self-mining Hashrate currently
contributes USD$227,247 per month in
self-mining revenue for CryptoStar. (Source:
https://whattomine.com/ Mining metrics are calculated based on a
BTC – USD exchange rate of 1 BTC = $19,985.68 updated at 2022-10-07 11:42:12 UTC).
- 160 high performance ASIC miners of the previously announced
purchase of 600 high performance ASIC miners remain to be deployed.
This will increase the Company's self-mining Hashrate from ASIC
miners by a further 14.1 PH/s. The Company anticipates deploying
these ASIC miners as expeditiously as possible upon expansion of
its operations in Quebec,
Canada.
- Since the completion of Ethereum's merge to proof of stake, the
Company is actively exploring opportunities to utilize its GPU
computing power.
Hosting Operations
- As at October 7, 2022, the
Company has Equipment Hosting Agreements for an aggregate mining
capacity of approximately 12 MW located at its award-winning data
centre facilities in Utah, USA,
contributing annual hosting revenues for the Company of
USD$2.1 million.
LOI with Kansas Partner
- On October 6, 2022, the Company
terminated the LOI with the Kansas Partner previously announced on
February 10, 2022 as a result of its
due diligence investigations.
Expansion in Quebec
- The Company, through a subsidiary, continues to make progress
on its expansion of operations in Quebec,
Canada, and on its application with Hydro Quebec to secure
an additional 5 MW of power at its data centre.
Alberta Operations
- 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.
Future Growth
- The Company plans to continue to further expand its self-mining
inventory of mining hardware. Further orders for mining hardware
may be placed using astute capital management strategies based upon
prevailing market conditions.
- 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 October 7, 2022, the
Company held 550.64 ETH, 80.05 BTC and USD$2.1 million (CAD$2.9
million) in cash.
- The Company has made payments and deposits for buildings and
infrastructure equipment of USD$3.9
million (CAD$5.4
million).
- Additionally, effective October 1,
2022, the Company extended its lease for a further five
years at one of its award-winning data centre facilities in
Utah, USA and made security
deposit payments of USD$340,000
(CAD$466,500) in relation to the
extension of the lease.
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 expected revenue generating capabilities of its
ASIC miners, expected increase in self-mining Hashrate, the time to
deploy the ASIC miners, assumption that damages will arise from its
litigation with the Alberta Partner, 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.
