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.
