Excellent news for CSTR! TORONTO, Aug. 12, 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 "Utah Customer") have executed an equipment hosting agreement (the "Hosting Agreement") effective August 11, 2021 for 4 MW of mining capacity at its award-winning data centre facility in Utah, USA. The Company is also pleased to announce that the Company and a U.S. based company (the "Alberta Customer") have signed a non-binding letter of intent (the "LOI") effective August 12, 2021 for 10 MW of mining capacity to be deployed in Alberta, Canada.
Equipment Hosting Agreement – Utah, USA
Under the terms of the Hosting Agreement, the Company will provide hosting services to the Utah Customer for 4 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$720,000.
- 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 Utah Customer has selected CryptoStar, and our award-winning data centre in Utah, USA. We are looking forward to providing hosting services to the Utah Customer and we anticipate that this will be the beginning of a long term and mutually beneficial relationship."
LOI for Hosting Services – Alberta, Canada
The LOI sets out the basic terms and conditions under which the Company will provide hosting services and infrastructure to the Alberta Customer for 10 MW of mining capacity at its data centre locations in Alberta, Canada. The transaction terms outlined in the LOI are subject to the parties successfully entering into a definitive agreement (the "Definitive Agreement"), which is expected to occur within 14 days.
It is expected that the Definitive Agreement will include the following terms:
- Annual hosting and power revenues for the Company of up to USD$5.3 million.
- Initial term of 36 months, with the option to renew for an additional 36-month term.
- Hosting services for the Alberta Customer to commence in Q4, 2021.
David Jellins, President and Chief Executive Officer of CryptoStar further stated, "We are looking forward to finalizing the Definitive Agreement with the Alberta Customer and to further expansion in Alberta, Canada."
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.
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