TORONTO, Jan. 13, 2021 /CNW/ – CryptoStar Corp. (TSXV: CSTR) (“CryptoStar” or the “Company“), a cryptocurrency mining and data centre operator, is pleased to announce it has signed a non-binding letter of intent (“LOI“) with a Hong Kong based company (the “Vendor“) effective January 12, 2021 to acquire GPU miners in exchange for common shares of CryptoStar (the “Transaction“).
Highlights of the proposed Transaction:
- Under the terms of the LOI, it is anticipated that CryptoStar and the Vendor will enter into a binding agreement (the “Definitive Agreement“) pursuant to which the Vendor will deliver GPU miners (containing the latest generation GeForce RTX 3000 Series GPU cards), capable of a combined minimum total Hashrate of 85,680 MH/s.
- The deployment of 85,680 MH/s of Hashrate using the latest generation GPU miners is expected to contribute 142.80 ETH or USD$145,473.22 per month in self-mining revenue for CryptoStar. CryptoStar plans to continue to expand its self-mining inventory of mining hardware. (Source: https://www.cryptocompare.com/mining/calculator/eth. Mining metrics are calculated based on a network hash rate of 351,248 GH/s and using the ETH – USD exchange rate of 1 ETH = $1,018.72 updated at 2021-01-13 00:27:05 UTC).
- GPU miners are capable of mining cryptocurrencies like Ethereum’s ether (ETH), Ethereum Classic (ETC), Zcash (ZEC), Monero (XMR) and many others.
- The agreed upon aggregate consideration under the proposed Transaction will be satisfied by the issuance of 20,000,000 common shares of CryptoStar at a deemed value of C$0.10 per Share (which includes finder’s fees of 1,132,075 common shares) subject to acceptance by the TSX Venture Exchange (the “TSXV“).
- Upon entering into the Definitive Agreement, it is anticipated that the GPU miners will be delivered to CryptoStar’s data centres within 14 days.
David Jellins, President and Chief Executive Officer of CryptoStar states, “We are delighted that the Vendor has selected CryptoStar as its preferred client for the supply of this highly sought-after GPU mining equipment. We are looking forward to self-mining on a larger scale and we anticipate that this will be the beginning of a long term and mutually beneficial relationship.”
Completion of the proposed Transaction is subject to TSXV approval.
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 completion of the Transaction including approval of the TSXV thereof, the payment of a finder’s fee, entering into the Definitive Agreement and the terms thereof, the time to deliver of the GPU miners, the expected revenue generating capabilities of the GPU miners and CryptoStar’s plans to continue its self-mining inventory of mining hardware. 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.
For further information: CryptoStar Corp., Attention: David Jellins, President and Chief Executive Officer, Investors: [email protected], Sales: [email protected], W: www.cryptostar.com