TSXV: CSTR
OTCQB: CSTXF
TORONTO, Dec. 20,
2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB:
CSTXF) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is
pleased to provide an update on operations. The Company also
announced today that Sean Harris has
informed the Company of his decision to resign as Chief Financial
Officer of the Company effective February
28, 2023.
Self-Mining Operations
- In December 2022, the Company
implemented an off-peak self-mining program in Utah, USA, whereby the Company is able to mine
approximately 80% of the time for approximately 50% of the
electricity cost, by utilizing off-peak electricity rates.
- As at December 20, 2022, the
Company has an aggregate self-mining Hashrate of 77.08 PH/s from
ASIC miners running at its data centres, with 45.5% of the
self-mining Hashrate being operated under the off-peak self-mining
program in Utah, USA.
- The 77.08 PH/s of existing self-mining Hashrate currently
contributes USD$130,294 per month in
self-mining revenue for CryptoStar. (Source:
https://whattomine.com/ Mining metrics are calculated based on a
BTC – USD exchange rate of 1 BTC = $16,884.55 updated at 2022-12-20 20:12:47 UTC).
- 160 high performance ASIC miners of the previously announced
purchase of 600 high performance ASIC miners remain to be deployed.
This will increase the Company's self-mining Hashrate from ASIC
miners by a further 14.1 PH/s. The Company anticipates deploying
these ASIC miners as expeditiously as possible.
- Since the completion of Ethereum's merge to proof
of stake, the Company is actively exploring opportunities to
utilize its GPU computing power.
Hosting Operations
- In December 2022, one of the
Company's Equipment Hosting Agreements for an aggregate mining
capacity of approximately 4 megawatts (MW) located at its
award-winning data centre facilities in Utah, USA expired. The Company plans to
execute a new Equipment Hosting Agreement for the available mining
capacity as expeditiously as possible.
- As at December 20, 2022, the
Company has Equipment Hosting Agreements for an aggregate mining
capacity of approximately 8 MW located at its award-winning data
centre facilities in Utah, USA,
contributing annual hosting revenues for the Company of
USD$1.4 million.
Quebec Operations
- In December 2022, the Company did
not renew 0.5 MW of the aggregate 2 MW of green, hydro-based power
in Quebec, Canada as it intends to
relocate the associated mining equipment to its Utah, USA data centres.
Alberta Operations
- The natural gas power generation site of 611890 Alberta Inc.
DBA Avila Energy (the "Alberta Partner") remains shut down.
Litigation against the Alberta Partner et al. is ongoing with
respect to the non-compliance with terms of the power supply
agreement for up to 30 MW and damages arising therefrom.
Resignation of Chief Financial Officer
- Mr. Harris informed the Company of his decision to resign as
Chief Financial Officer of the Company effective February 28, 2023.
- The Company would like to thank Mr. Harris for his
contributions and wishes him well in his future endeavours. The
Company has commenced the process to search for a new Chief
Financial Officer and will provide an update at a future date.
Future Growth
- The Company plans to continue to further expand its self-mining
inventory of mining hardware. Further orders for mining hardware
may be placed using astute capital management strategies based upon
prevailing market conditions.
- The Company plans to continue to further expand its data centre
operations in North America 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.
Financial Position
- The Company is in a strong financial position and is well
capitalized.
- In December 2022, the Company
sold its cryptocurrency reserves to increase its cash
reserves.
- As at December 20, 2022, the
Company held 1.9 BTC and USD$4.2
million (CAD$5.7 million) in
cash.
- The Company has made payments and deposits for buildings,
infrastructure equipment and security deposit payments of
USD$4.4 million (CAD$6.0 million).
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.
Forward-Looking Statements
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 expected revenue generating capabilities of its
ASIC and GPU miners, expected increase in self-mining Hashrate, the
time to deploy the ASIC miners, plans to execute a new Equipment
Hosting Agreement for available mining capacity in Utah, USA, intended relocation of mining
equipment from Quebec, Canada to
Utah, USA, assumption that damages
will arise from its litigation with the Alberta Partner,
CryptoStar's plans to continue to expand its self-mining inventory
of mining hardware, expand its data centre operations in
North America, to partner with
large cryptocurrency miners 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.