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CryptoStar Corp. Announces New Operations to Commence in NL, Canada Positioned to Become One of the Lowest Cost Bitcoin Producers in North America
CryptoStar Corp. Announces New Operations to Commence in NL, Canada Positioned to Become O...
About this update from Cryptostar Corp.
[{"type":"text","content":"\n\n\n\nCryptoStar Corp. Announces New Operations to Commence in NL, Canada Positioned to Become One of the Lowest Cost Bitcoin Producers in North America\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 18, 2019\n\n\n\nTORONTO, Dec. 18, 2019 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (\"CryptoStar\" or the \"Company\"), a cryptocurrency mining and data centre operator, is pleased to announce it has entered into a binding agreement (the \"Agreement\") with Tier 1 Solutions Inc. (\"Tier 1\") based in Newfoundland and Labrador, Canada. CryptoStar is also pleased to announce that it has also entered into its first rental agreement (the \"Rental Agreement\") with Tier 1, effective January 1, 2020.\nHighlights of the Transaction\nMaterial reduction in direct power costs by more than 60% Low cost of transaction with generous support of major shareholder The transaction is non-dilutive for CryptoStar's other shareholders CryptoStar positioned to become one of the lowest cost Bitcoin producers in North AmericaPursuant to the Agreement, Tier 1 will identify and acquire sites suitable for data centre usage and apply for power permits from Newfoundland and Labrador Hydro (\"NL Hydro\") in respect of such sites on behalf of CryptoStar. CryptoStar has entered into its first Rental Agreement, effective January 1, 2020, and anticipates entering into a service agreement with Tier 1 in due course. CryptoStar will also have the option to purchase any site CryptoStar rents from Tier 1 pursuant to the Agreement. \nPursuant to the Rental Agreement, the initial data centre buildout is anticipated to commence in Labrador City, NL on January 6, 2020. CryptoStar anticipates that the first data centre in Newfoundland and Labrador will ultimately have capacity for 6 MW of power. CryptoStar also anticipates that additional data centres and containerized PODs will subsequently come online in NL throughout 2020. To date, Tier 1 has applied for NL Hydro power permits in excess of 20 MW to facilitate CryptoStar's long term expansion plans in Newfoundland and Labrador under th...