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TORONTO, Sept. 24, 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 Canadian based company (the "Alberta Customer") have executed an equipment hosting agreement (the "Hosting Agreement") effective September 22, 2021 for 10 megawatts (MW) of mining capacity to be deployed in Alberta, Canada. The Company is also pleased to announce that it has ordered 600 high performance ASIC miners from an affiliate of the Alberta Customer, with a total Hashrate of 52.8 Petahash per second (PH/s) to be used for self-mining for the Company.
Equipment Hosting Agreement
Under the terms of the Hosting Agreement, 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.
Highlights of the Hosting Agreement:
Annual hosting and power revenues for the Company of up to USD$5.3 million.
Initial hosting term of 36 months, with the option to renew for an additional 36-month term.
Hosting services for the Alberta Customer to commence in Q1, 2022.
David Jellins, President and Chief Executive Officer of CryptoStar stated, "We are excited that the Alberta Customer has selected CryptoStar as its hosting provider. We are looking forward to providing hosting services to the Alberta Customer and continuing our relationship with their group."
ASIC Miner Purchase
The Company is proud to build upon its relationship with the Alberta Customer through the purchase of 600 high performance ASIC miners. These 600 miners will be delivered in 6 equal tranches of 100 miners during calendar 2022 commencing in January and ending in June. This will increase the Company's self-mining Hashrate from ASIC miners by 8.8 PH/s each delivery month, resulting in a total self-mining Hashrate increase from ASIC miners of 52.8 PH/s.
Once deployed, along with the additional 10 PH/s of Hashrate from ASIC miners to be deployed by November 30, 2021, as announced on September 15, 2021, the Company's total aggregate self-mining Hashrate from ASIC miners will be 103.6 PH/s, representing an increase in Hashrate of 153% from the existing self-mining Hashrate from ASIC miners announced on September 15, 2021.
The deployment of 103.6 PH/s from ASIC miners would generate approximately 21.1 Bitcoin per month based on current difficulty levels. (Source: https://whattomine.com/ Updated at 2021-09-24 11:43:17 UTC).
David Jellins, President and Chief Executive Officer of CryptoStar further stated, "We are delighted to build upon our relationship with the Alberta Customer by ordering high performance ASIC miners through its affiliate. CryptoStar intends to continue to further expand its self-mining inventory of mining hardware using astute capital management strategies based upon prevailing market conditions."
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.
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 expectation of continuing its relationship with the Alberta Customer's group, the expected revenue and timing to commence the hosting services associated with the Hosting Agreement, the expected Bitcoin revenue generating capabilities of the ASIC miners, the time to deliver and deploy the ASIC miners, CryptoStar's plans to continue to expanding its self-mining inventory of mining hardware 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.
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