CryptoStar Corp V.CSTR

CSTR CONTINUE EXPANSION IN ALBERTA & MORE

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CryptoStar Corp. Executes Equipment Hosting Agreement with U.S. Based Customer and Continues Expansion in Alberta, Canada

  by @newswire on 15 Jul 2021, 18:54
   
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.