Canada markets closed
  • S&P/TSX

    19,062.91
    +345.79 (+1.85%)
     
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • DOW

    31,500.68
    +823.32 (+2.68%)
     
  • CAD/USD

    0.7759
    +0.0064 (+0.83%)
     
  • CRUDE OIL

    107.06
    +2.79 (+2.68%)
     
  • BTC-CAD

    27,663.11
    +548.59 (+2.02%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • GOLD FUTURES

    1,828.10
    -1.70 (-0.09%)
     
  • RUSSELL 2000

    1,765.74
    +54.06 (+3.16%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • NASDAQ

    11,607.62
    +375.43 (+3.34%)
     
  • VOLATILITY

    27.23
    -1.82 (-6.27%)
     
  • FTSE

    7,208.81
    +188.36 (+2.68%)
     
  • NIKKEI 225

    26,491.97
    +320.72 (+1.23%)
     
  • CAD/EUR

    0.7347
    +0.0040 (+0.55%)
     

CryptoStar Corp. Signs Letter of Intent to Secure up to 87.2 MW of Low-Cost Power and Provides Update on Operations

  • Oops!
    Something went wrong.
    Please try again later.
·7 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

TORONTO, Feb. 10, 2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce that it has signed a letter of intent (the "LOI") with a Kansas, USA based energy company (the "Kansas Partner") effective February 9, 2022 for up to 87.2 megawatts (MW) of power to be supplied at among the lowest electricity rates in North America. The Company also provides an update on operations.

LOI with Kansas Partner

Highlights of the proposed Transaction:

  • Under the terms of the LOI, it is anticipated that CryptoStar and the Kansas Partner will enter into a power supply agreement (the "Power Supply Agreement") for the first 21.8 MW of power by February 28, 2022.

  • It is anticipated that the first 21.8 MW of power will be operational within 60 to 90 days from the execution of the Power Supply Agreement.

  • The Kansas Partner currently possesses, controls or has access to certain sites in Kansas, USA and, upon approval by applicable regulatory authorities, intends to generate and supply to CryptoStar an aggregate 87.2 MW of power.

  • CryptoStar has the option to enter into power supply agreements for up to an additional 65.4MW of electricity, exercisable in increments of 21.8 MW.

  • The Power Supply Agreement will have a term of five (5) years, which shall automatically renew for additional five (5) year terms unless terminated in accordance with the terms thereof.

The Company anticipates commencing operations in Kansas, USA in Q2, 2022.

David Jellins, President and Chief Executive Officer of CryptoStar states, "This LOI with the Kansas Partner is consistent with the Company's long term expansion plans into low-cost energy regions in North America and solidifies CryptoStar's objective to become one of the most reliable, lowest cost crypto miners and hosting services providers in North America."

Alberta Operations and Termination of Equipment Hosting Agreements

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.

The Company has terminated the equipment hosting agreements announced on August 31, 2021 for 5 MW and September 2, 2021 for 10 MW of mining capacity to be deployed in Alberta, Canada due to the delays in the deployment of power by the Alberta Partner.

Expansion in Quebec

The Company's subsidiary, Neuro Digital Inc., has commenced its expansion of operations in Quebec, progressing on its application with Hydro Quebec to secure the first 5 MW of power at its data centre.

Operations

  • As at February 10, 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.

  • As at February 10, 2022, the Company has an aggregate self-mining Hashrate of 103,660 MH/s from GPU miners and 15.6 PH/s from ASIC miners running at its data centres.

  • The 103,660 MH/s and 15.6 PH/s of existing self-mining Hashrate currently contributes USD $245,513.30 per month in self-mining revenue for CryptoStar. (Source: https://whattomine.com/ Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH = $3,242.08 and a BTC - USD exchange rate of 1 BTC = $44,711.51 updated at 2022-02-10 12:27:38 UTC).

  • The Company continues to plan to redeploy its previously announced reduced self-mining Hashrate of 53,514 MH/s from GPU miners and 50.3 PH/s from ASIC miners that were previously running at the Alberta Partner's site in Alberta, Canada as expeditiously as possible in Q1, 2022.

  • The Company purchased 600 high performance ASIC miners to be delivered in 6 equal tranches of 100 miners during calendar 2022 commencing in January and ending in June, with the first 100 miners in transit to the Company's data centres. 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.

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 Q1, 2022 and 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 February 10, 2022, the Company held 461.62 ETH, 80.99 BTC and USD$5.0 million (CAD$6.4 million) in cash.

  • Additionally, the Company has made payments and deposits for ASIC miners, buildings and infrastructure equipment of USD$6.1 million (CAD$7.7 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 expectation that the Company and the Kansas Partner will enter into the Power Supply Agreement for the first 21.8 MW of power by February 28, 2022, the anticipated term of the Power Supply Agreement, the anticipated commencement of the Company's operations in Kansas, USA, CryptoStar's objective to become one of the most reliable, lowest cost crypto miners and hosting services providers in North America, CryptoStar's assumption that damages will arise from its litigation with the Alberta Partner, the expected revenue generating capabilities of the GPU and ASIC miners, plans to redeploy its reduced self-mining Hashrate as expeditiously as possible in Q1 2022, the time to deliver and deploy the ASIC miners, 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/February2022/10/c5764.html

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting