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CryptoStar Corp V.CSTR

Alternate Symbol(s):  CSTXF

CryptoStar Corp. is a Canada-based self-mining cryptocurrency producer. The Company and its subsidiaries operate in the distributed ledger technology space, utilizing specialized equipment (miners) to perform computationally intensive cryptographic operations to validate transactions on the Blockchain (mining), receiving digital currencies (primarily Bitcoin). The Company operates through three segments: self-mining, hosting and miner sales. The Company is the supplier of graphics processing unit (GPU) and Australian securities and investments commission (ASIC) miners & hosting solutions worldwide. The Company also provides equipment hosting services to customers worldwide, for which services the Company receives hosting fees, as well as sells miners to customers. The Company operates data centers in the United States and Canada. Its wholly owned subsidiaries include CryptoStar Holdings Inc., CryptoStar USA, Inc., and Neuro Digital Inc.


TSXV:CSTR - Post by User

Post by mrmomoon Mar 11, 2021 8:43am
225 Views
Post# 32770798

Holy DILUTION Batman!

Holy DILUTION Batman!Wow.....seems that they're giving not only the farm away, but the kitchen sink including the baby & bathwater. Imo, they've basically given the company away far too early, This kind of dilution at these low levels isn't acretive, it's a stock killer long term. By my calculations, with this new share issuance + the new warrants, it will give Cryptocrap 600M o/s when finalized. Which is way too much and crazy for a company this size.

For comparions purposes, Hive has about half the o/s shares at they will be at 2EX hash by years end,,,,, ONLY on the Bitcoin side not to mentione their Ether mining. Bitfarms has 1/4 the o/s and will be around 2EX hash also. Dmgi has also about 1/4 the o/s and will also be at 2EX hash by end of 2021. So you can the the huge difference in paper & power. Imo, screwed up from the start by not being proactive and lacking the necessary skills/competence needed to run a succefull miner. Now they're trying to make up for what they failed to do in the past, but they're killing the company in the process.

Imo, what should have been done from the getgo or a year ago was a share consolidation (as i suggested last year)and prepping the company for a complete restart, but they didn't antything. Imo, they probably didn't want to take the financial hit or loss from a reverse split since they own the majority of the shares. It would have been a sacrifice by the them BUT would have benefited the company and their s/h longterm and they would have been on more solid footing. Oh well.....

Another thing to note here from this news, they did NOT disclose the investors. Hopefully it was "themselves" again......My final take is this. Stay away as there are better plays for investors in this space. It was a helluv a deal at a nickel and a bargain at a dime when the FOMO in this space had just started. But now, i would not reccomend folks invest here at all at these prices, way too much worthless paper and not enough assets to justify the valuations.

JMHO

Good luck & God speed
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