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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.
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.
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