CRYPTOSTAR CORP. PROVIDES UPDATE ON ALBERTA OPERATIONS
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TORONTO, Dec. 20, 2021 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, provides an update on business operations and recent developments with respect to its power supply agreement ("PSA") for up to 30 megawatts (MW) with 611890 Alberta Inc. DBA Avila Energy (the "Alberta Partner") and its data centres in Alberta, Canada.
On December 1, 2021, the Company filed a Notice of Action and Notice of Motion against the Alberta Partner et al. with the Ontario Superior Court of Justice due to the Alberta Partner's non-compliance with terms of the PSA. On December 8, 2021, the parties agreed to adjourn the Notice of Motion on a returnable basis, in an attempt to resolve the outstanding issues.
The Company and the Alberta Partner are continuing to work to resolve the issues however the Company anticipates delays to the deployment dates for the Company's Equipment Hosting Agreements ("EHAs") for 5 MWs announced on August 31, 2021, 10 MWs announced on September 2, 2021 and 10 MWs announced on September 24, 2021. The impact of the delays will be a deferral of the associated revenues and may include financial credits as set out in the EHAs and temporary reductions in the Company's self-mining Hashrate and associated revenues in the event that equipment is relocated. The Company will provide further updates of any material changes.
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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