CryptoStar Corp. Provides Update on Operations and Personnel

TSXV: CSTR
OTCQB: CSTXF

TORONTO, Dec. 20, 2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to provide an update on operations. The Company also announced today that Sean Harris has informed the Company of his decision to resign as Chief Financial Officer of the Company effective February 28, 2023.

Self-Mining Operations

• In December 2022, the Company implemented an off-peak self-mining program in Utah, USA, whereby the Company is able to mine approximately 80% of the time for approximately 50% of the electricity cost, by utilizing off-peak electricity rates.
• As at December 20, 2022, the Company has an aggregate self-mining Hashrate of 77.08 PH/s from ASIC miners running at its data centres, with 45.5% of the self-mining Hashrate being operated under the off-peak self-mining program in Utah, USA.
• The 77.08 PH/s of existing self-mining Hashrate currently contributes USD$130,294 per month in self-mining revenue for CryptoStar. (Source: https://whattomine.com/ Mining metrics are calculated based on a BTC – USD exchange rate of 1 BTC = $16,884.55 updated at 2022-12-20 20:12:47 UTC).
• 160 high performance ASIC miners of the previously announced purchase of 600 high performance ASIC miners remain to be deployed. This will increase the Company's self-mining Hashrate from ASIC miners by a further 14.1 PH/s. The Company anticipates deploying these ASIC miners as expeditiously as possible.
• Since the completion of Ethereum's merge to proof of stake, the Company is actively exploring opportunities to utilize its GPU computing power.

Hosting Operations

• In December 2022, one of the Company's Equipment Hosting Agreements for an aggregate mining capacity of approximately 4 megawatts (MW) located at its award-winning data centre facilities in Utah, USA expired. The Company plans to execute a new Equipment Hosting Agreement for the available mining capacity as expeditiously as possible.
• As at December 20, 2022, the Company has Equipment Hosting Agreements for an aggregate mining capacity of approximately 8 MW located at its award-winning data centre facilities in Utah, USA, contributing annual hosting revenues for the Company of USD$1.4 million.

Quebec Operations

• In December 2022, the Company did not renew 0.5 MW of the aggregate 2 MW of green, hydro-based power in Quebec, Canada as it intends to relocate the associated mining equipment to its Utah, USA data centres.

Alberta Operations

• The natural gas power generation site of 611890 Alberta Inc. DBA Avila Energy (the "Alberta Partner") remains shut down. Litigation against the Alberta Partner et al. is ongoing with respect to the non-compliance with terms of the power supply agreement for up to 30 MW and damages arising therefrom.

Resignation of Chief Financial Officer

• Mr. Harris informed the Company of his decision to resign as Chief Financial Officer of the Company effective February 28, 2023.
• The Company would like to thank Mr. Harris for his contributions and wishes him well in his future endeavours. The Company has commenced the process to search for a new Chief Financial Officer and will provide an update at a future date.

Future Growth

• The Company plans to continue to further expand its self-mining inventory of mining hardware. Further orders for mining hardware may be placed using astute capital management strategies based upon prevailing market conditions.
• The Company plans to continue to further expand its data centre operations in North America by partnering with large cryptocurrency miners seeking operating locations in North 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.
• In December 2022, the Company sold its cryptocurrency reserves to increase its cash reserves.
• As at December 20, 2022, the Company held 1.9 BTC and USD$4.2 million (CAD$5.7 million) in cash.
• The Company has made payments and deposits for buildings, infrastructure equipment and security deposit payments of USD$4.4 million (CAD$6.0 million).

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 expected revenue generating capabilities of its ASIC and GPU miners, expected increase in self-mining Hashrate, the time to deploy the ASIC miners, plans to execute a new Equipment Hosting Agreement for available mining capacity in Utah, USA, intended relocation of mining equipment from Quebec, Canada to Utah, USA, assumption that damages will arise from its litigation with the Alberta Partner, CryptoStar's plans to continue to expand its self-mining inventory of mining hardware, expand its data centre operations in North America, to partner with large cryptocurrency miners and CryptoStar's plans of becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide. 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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