LOI with Kansas Partner
Highlights of the proposed Transaction:
- Under the terms of the LOI, it is anticipated that
CryptoStar and the Kansas Partner will enter into a power supply agreement (the "Power Supply Agreement") for the first 21.8 MW of power byFebruary 28, 2022 . - It is anticipated that the first 21.8 MW of power will be operational within 60 to 90 days from the execution of the Power Supply Agreement.
- The Kansas Partner currently possesses, controls or has access to certain sites in
Kansas, USA and, upon approval by applicable regulatory authorities, intends to generate and supply toCryptoStar an aggregate 87.2 MW of power. CryptoStar has the option to enter into power supply agreements for up to an additional 65.4MW of electricity, exercisable in increments of 21.8 MW.- The Power Supply Agreement will have a term of five (5) years, which shall automatically renew for additional five (5) year terms unless terminated in accordance with the terms thereof.
The Company anticipates commencing operations in
Alberta Operations and Termination of Equipment Hosting Agreements
The natural gas power generation site of 611890
The Company has terminated the equipment hosting agreements announced on
Expansion in
The Company's subsidiary,
Operations
- As at
February 10, 2022 , the Company has Equipment Hosting Agreements for an aggregate mining capacity of 12 MW located at its award-winning data centre facilities inUtah, USA . - As at
February 10, 2022 , the Company has an aggregate self-mining Hashrate of 103,660 MH/s from GPU miners and 15.6 PH/s from ASIC miners running at its data centres. - The 103,660 MH/s and 15.6 PH/s of existing self-mining Hashrate currently contributes USD
$245,513.30 per month in self-mining revenue forCryptoStar . (Source: https://whattomine.com/ Mining metrics are calculated based on and ETH - USD exchange rate of 1 ETH =$3,242.08 and a BTC - USD exchange rate of 1 BTC =$44,711.51 updated at 2022-02-1012:27:38 UTC ). - The Company continues to plan to redeploy its previously announced reduced self-mining Hashrate of 53,514 MH/s from GPU miners and 50.3 PH/s from ASIC miners that were previously running at the Alberta Partner's site in
Alberta, Canada as expeditiously as possible in Q1, 2022. - 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, with the first 100 miners in transit to the Company's data centres. 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 once deployed.
Future Growth
- The Company plans to continue to further expand its self-mining inventory of mining hardware. Additional ASIC miners have been ordered for delivery in Q1, 2022 and Q2, 2022 and further orders for mining hardware will be placed using astute capital management strategies based upon prevailing market conditions for delivery in Q2, 2022 and beyond.
- The Company plans to continue to further expand its data centre operations in
North America by partnering with large cryptocurrency miners seeking operating locations inNorth America . The Company continues to consider and perform diligence on several potential transactions and opportunities.
Financial Position
- The Company is in a strong financial position and is well capitalized.
- As at
February 10, 2022 , the Company held 461.62 ETH, 80.99 BTC andUSD$5.0 million (CAD$6.4 million ) in cash. - Additionally, the Company has made payments and deposits for ASIC miners, buildings and infrastructure equipment of
USD$6.1 million (CAD$7.7 million ).
About
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Forward-Looking Statements
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SOURCE
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