Canada Markets open in 8 hrs 9 mins

CryptoStar Corp. Provides Update on Operations and Announces Stock Option Grants

TORONTO, June 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 and announces stock option grants.

Self-Mining Operations

  • As at June 20, 2022, the Company has an aggregate self-mining Hashrate of 93.0 PH/s from ASIC miners and 136,850 MH/s from GPU miners running at its data centres.

  • The 93.0 PH/s and 136,850 MH/s of existing self-mining Hashrate currently contributes USD$312,902 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 = $20,874.86 and ETH - USD exchange rate of 1 ETH = $1,139.14 updated at 2022-06-20 14:54:49 UTC).

  • 100 high performance ASIC miners of the previously announced purchase of 600 high performance ASIC miners remain to be deployed and a further 100 high performance ASIC miners are scheduled to be delivered in June 2022. This will increase the Company's self-mining Hashrate from ASIC miners by a further 17.6 PH/s.

Expansion in Quebec

  • The Company secured an additional 0.5 megawatts (MW) of green, hydro-based power in Quebec, Canada effective May 10, 2022. This is in addition to the 1.5 MW of green, hydro-based power secured by the Company in Quebec, Canada, previously announced on April 5, 2022.

  • The Company, through a subsidiary, 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.

Hosting Operations

  • As at June 20, 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.

Stock Option Grants

  • The Company granted an aggregate of 5,000,000 options (the "Options") to an officer of the Company to purchase 5,000,000 common shares (the "Shares") in the capital of the Company pursuant to the Company's stock option plan. The Options will vest in accordance with the following schedule: 25% of the Options will vest at each of the three-month, ten-month, seventeen-month and twenty-four-month anniversary of the grant date. The Options will expire on June 17, 2032 with 2,500,000 Options being exercisable at an exercise price of $0.05 per Share and the remaining 2,500,000 Options being exercisable at an exercise price of $0.10 per Share.

Future Growth

  • The Company plans to continue to further expand its self-mining inventory of mining hardware. Further orders for mining hardware will be placed using astute capital management strategies based upon prevailing market conditions for delivery in Q3, 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 June 20, 2022, the Company held 649.12 ETH, 105.56 BTC and USD$1.9 million (CAD$2.4 million) in cash.

  • Additionally, the Company has made payments and deposits for ASIC miners, buildings and infrastructure equipment of USD$4.6 million (CAD$6.1 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 GPU and ASIC miners, expected increase in self-mining Hashrate, 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/June2022/20/c5987.html