November 15, 2021 at 09:48 am EST
Share
TSXV: CSTR
OTCQB: CSTXF
Neuro Digital Transaction
Highlights of the proposed Transaction:
- Under the terms of the LOI, it is anticipated that
CryptoStar and Neuro Digital will enter into a binding agreement (the "Definitive Agreement") pursuant to whichCryptoStar will acquire 100% of the outstanding shares of Neuro Digital. - Neuro Digital is a data centre operator specializing in GPU mining, Decentralized Finance (DeFi) and AI solutions with an operational data centre located in
Quebec, Canada (the "Quebec Data Centre "). Neuro Digital's current, proof of concept location has a power capacity of 0.5 megawatt (MW) with plans for expeditious expansion in various locationsthat have been identified throughout the province ofQuebec . - The currently operating
Quebec Data Centre is powered by competitively priced, reliable, on-the-grid, green hydroelectricity, aligning with the Company's commitment to the Crypto Climate Accord. - Neuro Digital currently has an aggregate self-mining Hashrate of 83,162 MH/s from GPU miners running at the
Quebec Data Centre . - The additional 83,162 MH/s of Hashrate from Neuro Digital's GPU miners would add
USD$199,448.78 (CAD$249,310.98 ) per month in self-mining revenue for the Company based upon current market conditions. (Source: https://whattomine.com/Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH =$4,713.58 updated at 2021-11-1512:20:35 UTC ). - Key management personnel of Neuro Digital will remain with the company and will be responsible for the expansion of
CryptoStar's operations inQuebec, Canada . - The agreed upon consideration under the proposed Transaction will be satisfied by the payment of
CAD$2.4 million in cash. - It is anticipated that the Definitive Agreement will be executed no later than
December 15, 2021 , subject to the completion of due diligence.
Summary of Existing CryptoStar Business (pre-Neuro Digital Transaction)
- The Company successfully deployed an additional 10 PH/s of Hashrate from ASIC miners announced on
September 15, 2021 , more than two weeks ahead of schedule. - The Company currently has an aggregate self-mining Hashrate of 93,608 MH/s from GPU miners and 67.2 PH/s from ASIC miners running at its data centres.
- The deployment of 93,608 MH/s and 67.2 PH/s of existing Hashrate from GPU and ASIC miners currently contributes
USD$11.7 million in annualized self-mining revenue forCryptoStar . (Source: https://whattomine.com/ Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH =$4,713.58 and a BTC - USD exchange rate of 1 BTC =$65,667.99 updated at 2021-11-1512:20:35 UTC ). - The Company purchased 600 high performance ASIC miners to be delivered in 6 equal tranches of 100 miners during calendar 2022 commencing in January and ending in June.This will increase the Company's self-mining Hashrate from ASIC miners by 8.8 PH/s each delivery month, resulting in a total self-mining Hashrate increase from ASIC miners of 52.8 PH/s.
- The deployment of a total Hashrate of 120 PH/s from ASIC miners would generate approximately 20.4 Bitcoin per month based on current difficulty levels. (Source: https://whattomine.com/ Updated at 2021-11-15
12:20:35 UTC ). - The Company has executed Equipment Hosting Agreements for an aggregate mining capacity of 37 MW which are expected to contribute up to
USD$14.8 million in annual hosting and power revenues for the Company, with the hosting services inAlberta, Canada expected to commence in Q4, 2021 and Q1, 2022. - As at
November 15, 2021 , the Company has made payments and deposits for ASIC miners, infrastructure equipment and engineering services ofUSD$3.6 million (CAD$4.5 million ). The company also holdsUSD$947,000 (CAD$1,184,000 ) in inventory for sale. - The Company is in a strong financial position and is well capitalized. As at
November 15, 2021 , the Company held 326 ETH, 65 BTC andUSD$12.0 million (CAD$15.0 million ) in cash.
About
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
SOURCE
© Canada Newswire, source
Share
© Acquiremedia - 2021