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CryptoStar Corp. Increases Self-Mining Hashrate and Expands Operations in Quebec, Canada

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TORONTO, April 5, 2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce the expansion of its self-mining Hashrate and operations in Quebec, Canada. The Company also provides an update on operations.

Redeployment of Hashrate and Expansion in Quebec

In March 2022, the Company secured an aggregate mining capacity of 1.5 megawatts (MW) of green, hydro-based power in Quebec, Canada, effective April 1, 2022. As at April 1, 2022, the Company had successfully redeployed 88% of its ASIC self-mining Hashrate equating to 44.35 PH/s and 52% of its GPU self-mining Hashrate equating to 39.16 MH/s from ASIC and GPU miners that were relocated from Alberta, Canada in its data centres in Quebec, Canada.

In addition, through a subsidiary, the Company continues to make progress on its expansion of operations in Quebec, Canada, and on its application with Hydro Quebec to secure an additional 5 MW of power at its data centre.

Self-Mining Operations

  • As at April 5, 2022, the Company had received and deployed at its award-winning data centre facilities in Utah, USA, 300 of the 600 high performance ASIC miners previously announced on September 24, 2021, representing an additional self-mining Hashrate of 26.48 PH/s.

  • As at April 5, 2022, the Company has an aggregate self-mining Hashrate of 78.8 PH/s from ASIC miners and 121,944 MH/s from GPU miners running at its data centres.

  • The 78.8 PH/s and 121,944 MH/s of existing self-mining Hashrate currently contributes USD$674,342.98 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 = $46,609.30 and ETH - USD exchange rate of 1 ETH = $3,515.04 updated at 2022-04-05 11:07:26 UTC).

  • The previously announced purchase of 600 high performance ASIC miners to be delivered in 6 equal tranches of 100 miners during calendar 2022 commencing in January 2022 and ending in June 2022, continue to be delivered with three deliveries remaining. This will increase the Company's self-mining Hashrate from ASIC miners by a further 8.8 PH/s each delivery month.

  • The Company anticipates that it will redeploy the remaining self-mining Hashrate of 11.6 PH/s from ASIC miners and 54,826 MH/s from GPU miners that were previously running in Alberta, Canada as expeditiously as possible in Q2, 2022.

Hosting Operations

  • As at April 5, 2022, the Company has Equipment Hosting Agreements for an aggregate mining capacity of 12 MW located at its award-winning data centre facilities in Utah, USA, contributing annual hosting revenues for the Company of USD$1.7 million.

LOI with Kansas Partner

  • The Company continues to perform diligence on the potential power supply agreement with a Kansas-based energy company as previously announced on February 10, 2022.

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.

Future Growth

  • The Company plans to continue to further expand its self-mining inventory of mining hardware. Additional ASIC miners have been ordered for delivery in Q2, 2022 and further orders for mining hardware will be placed using astute capital management strategies based upon prevailing market conditions for delivery in Q2, 2022 and beyond.

  • 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.

  • As at April 5, 2022, the Company held 538.38 ETH, 86.72 BTC and USD$2.7 million (CAD$3.4 million) in cash.

  • Additionally, the Company has made payments and deposits for ASIC miners, buildings and infrastructure equipment of USD$4.9 million (CAD$6.2 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.

www.cryptostar.com

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 GPU and ASIC miners, expected increase in self-mining Hashrate, plans to redeploy its remaining self-mining Hashrate previously running in Alberta, Canada as expeditiously as possible in Q2, 2022, the time to deliver and deploy the ASIC and GPU miners, 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.

Cision
Cision

View original content: http://www.newswire.ca/en/releases/archive/April2022/05/c3534.html

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