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CryptoStar Corp. Renegotiates Definitive Agreement with Hong Kong Based Company and Announces Purchase of Additional Mining H...
March 30 2021 - 08:52AM
PR Newswire (Canada)
TSXV: CSTR
TORONTO, March 30, 2021 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce that, further to the execution of a definitive agreement announced on March 8, 2021, the Company and a Hong Kong based company (the "Vendor") have renegotiated an equipment purchase agreement (the "Definitive Agreement") effective March 7, 2021 to acquire a combination of GPU and ASIC miners in exchange for 5,927,151 units ("Units") of the Company at a deemed value of CAD$1,422,516.24 (the "Transaction"). The Company will issue an additional 355,629 Units (the "Finder's Fee") to Chen Peifeng in connection with Transaction. As compared to the terms announced on March 8, 2021, the renegotiation represents a 25.5% reduction in the deemed value of the Definitive Agreement and a 25.5% reduction in the number of Units to be exchanged.
Each Unit consists of one common share of CryptoStar (a "Common Share") and one common share purchase warrant of CryptoStar (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of CAD $0.36 per Common Share for a period of 18 months from the date of issue.
The Transaction, including payment of the Finder's Fee, is subject to TSX Venture Exchange (the "TSXV") approval.
Highlights of the Transaction:
The Vendor will deliver GPU and ASIC miners capable of an approximate total Hashrate of 25,950 MH/s and 5,510 TH/s respectively.
It is anticipated that the GPU and ASIC miners will be delivered to CryptoStar's data centres in Alberta, Canada within 14 days.
The deployment of 25,950 MH/s and 5,510 TH/s of Hashrate using the latest generation GPU and ASIC miners is expected to contribute USD$138,908.35 per month in self-mining revenue for CryptoStar. CryptoStar plans to continue to further expand its self-mining inventory of mining hardware.
(Source: https://whattomine.com/ Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH = $1,836.01 and a BTC - USD exchange rate of 1 BTC = $58,973.49 updated at 2021-03-30 11:07:01 UTC).
CryptoStar is also pleased to announce that the Company has purchased additional mining Hashrate from additional suppliers (the "Purchases").
Highlights of the Purchases:
The additional suppliers will deliver GPU and ASIC miners capable of an approximate total Hashrate of 24,000 MH/s and 11,950 TH/s respectively.
It is anticipated that the GPU miners will be delivered to CryptoStar's data centres in Alberta within 21 days and the ASIC miners are scheduled for delivery by the end of May 2021.
The deployment of 24,000 MH/s and 11,950 TH/s of additional mining Hashrate using the latest generation GPU and ASIC miners is expected to contribute an additional USD$205,021.72 per month in self-mining revenue for CryptoStar. CryptoStar plans to continue to further expand its self-mining inventory of mining hardware.
(Source: https://whattomine.com/ Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH = $1,836.01 and a BTC - USD exchange rate of 1 BTC = $58,973.49 updated at 2021-03-30 11:07:01 UTC).
The combined total deployment of 49,950 MH/s and 17,460 TH/s of self-mining Hashrate using the latest generation GPU and ASIC miners is expected to contribute USD$343,930.07 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 = $1,836.01 and a BTC - USD exchange rate of 1 BTC = $58,973.49 updated at 2021-03-30 11:07:01 UTC).
David Jellins, President and Chief Executive Officer of CryptoStar states, "We are delighted to be adding self-mining Hashrate using this highly sought-after GPU and ASIC mining equipment. We are looking forward to taking delivery of the additional GPU and ASIC miners from our Vendor and from our additional suppliers. We are also looking forward to self-mining on a larger scale as we continue to add further self-mining Hashrate throughout the remainder of 2021 and beyond. The Company has transitioned from a self-mining, Bitcoin only, company to a self-miner of both Bitcoin and Ethereum and CryptoStar is now able to host in Alberta, Canada for cryptocurrency mining customers from around the globe at amongst the lowest power rates available in North America."
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 hosting and 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 the Transaction and the Purchases including completion of the Transaction and approval of the TSXV thereof, the payment of the Finder's Fee, the time to deliver the GPU and ASIC miners, the expected revenue generating capabilities of the GPU and ASIC miners, and CryptoStar's plans to continue to further expand its self-mining inventory of mining hardware and self-mine on a larger scale. 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.
Copyright 2021 Canada NewsWire
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