TSXV: CSTR
TORONTO, Aug. 12, 2021 /CNW/ - CryptoStar Corp. (TSXV:
CSTR) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is pleased to
announce that the Company and a U.S. based company (the "Utah
Customer") have executed an equipment hosting agreement (the
"Hosting Agreement") effective August
11, 2021 for 4 MW of mining capacity at its award-winning
data centre facility in Utah, USA.
The Company is also pleased to announce that the Company and a U.S.
based company (the "Alberta Customer") have signed a
non-binding letter of intent (the "LOI") effective
August 12, 2021 for 10 MW of mining
capacity to be deployed in Alberta,
Canada.
Equipment Hosting Agreement – Utah,
USA
Under the terms of the Hosting Agreement, the Company will
provide hosting services to the Utah Customer for 4 MW of mining
capacity at its award-winning data centre in Utah, USA.
Highlights of the Hosting Agreement:
- Annual hosting revenues for the Company of USD$720,000.
- Initial term of 12 months, renewing month-to-month
thereafter.
David Jellins, President and
Chief Executive Officer of CryptoStar stated, "We are delighted
that the Utah Customer has selected CryptoStar, and our
award-winning data centre in Utah,
USA. We are looking forward to providing hosting services to
the Utah Customer and we anticipate that this will be the beginning
of a long term and mutually beneficial relationship."
LOI for Hosting Services – Alberta,
Canada
The LOI sets out the basic terms and conditions under which the
Company will provide hosting services and infrastructure to the
Alberta Customer for 10 MW of mining capacity at its data
centre locations in Alberta,
Canada. The transaction terms outlined in the LOI are
subject to the parties successfully entering into a definitive
agreement (the "Definitive Agreement"), which is expected to
occur within 14 days.
It is expected that the Definitive Agreement will include the
following terms:
- Annual hosting and power revenues for the Company of up to
USD$5.3 million.
- Initial term of 36 months, with the option to renew for an
additional 36-month term.
- Hosting services for the Alberta Customer to commence in Q4,
2021.
David Jellins, President and
Chief Executive Officer of CryptoStar further stated, "We are
looking forward to finalizing the Definitive Agreement with the
Alberta Customer and to further expansion in Alberta, Canada."
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 of a long term and mutually beneficial
relationship with the Utah Customer, the expected revenue
associated with both the Hosting Agreement and the Definitive
Agreement, entering into the Definitive Agreement and the terms
thereof and CryptoStar's plans to continue to expand its data
centre operations in Alberta,
Canada. 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.