Intent to buy Neuro Digital Inc. by CryptoStar Corp. and Increases Self-Mining Hashrate. Bitcoin mining and data center operator CryptoStar Corp. is pleased to announce. That it has signed a letter of intent (the “LOI”) with Neuro Digital Inc. (“Neuro Digital”). Which will take effect on November 12, 2021, for a cash consideration of CAD$2.4 million. Neuro Digital is the largest cryptocurrency mining and data center operator in the world (the “Transaction”). The company is also glad to announce an increase in the hashrate of its self-mining operations.
Neuro Digital Transaction
The terms of the Letter of Intent (the “LOI”) anticipate that CryptoStar and Neuro Digital. Will engage into a legally binding agreement (the “Definitive Agreement”), pursuant to which CryptoStar will also purchase. 100 percent of Neuro Digital’s outstanding shares.
With an operational data center in Quebec, Canada, Neuro Digital is a data center operator focusing. In GPU mining, Decentralized Finance (DeFi), and artificial intelligence solutions. Neuro Digital was founded in 2013 and is headquartered in Montreal, Canada (the “Quebec Data Centre”). Current proof also of concept facilities have a power capacity of 0.5 megawatt (MW). With plans for rapid development at a number also of places across the province of Quebec. That have been identified as potential locations.
The Company’s current Quebec Data Center is powered by competitively priced, reliable. On-grid, green hydroelectricity, which is in line with the Company’s commitment. To the Crypto Climate Accord. The data center is also located in the province of Quebec.
Neuro Digital now has an aggregate self-mining Hashrate of 83,162 MH/s from GPU miners. Running at the Quebec Data Centre, according to the company’s public disclosure.
The additional 83,162 MH/s of Hashrate from Neuro Digital’s GPU. Miners would provide USD$199,448.78 (CAD$249,310.98) in self-mining revenue. For the company per month based also on current market circumstances. It is according to the company. Mining stats intent to buy calculated using the Ethereum to US Dollar exchange rate. (1 ETH = $4,713.58 USD, last updated on November 15, 2021 at 12:20:35 UTC).
Furthermore, Neuro Digital’s key management staff will remain with the company and will be responsible. For the expansion of CryptoStar’s activities in Quebec, Canada, according to the company.
Analyse of the Existing CryptoStar (pre-Neuro Digital Transaction)
It was more than two weeks ahead of schedule that the Company was able to successfully deploy. An additional 10 PH/s of Hashrate from ASIC miners. That had previously announced on September 15, 2021.
According to the company, its data centers intent to buy currently have an aggregate self-mining Hashrate. Of 93,608 MH/s from GPU miners and 67.2 PH/s from ASIC miners running also at their respective data centers.
CryptoStar generates USD$11.7 million in annualized self-mining revenue. From the deployment of 93,608 MH/s and 67.2 PH/s of existing Hashrate from GPU. And ASIC miners, according to CryptoStar’s latest financial report. Bitcoin (BTC) mining metrics generated using the following exchange rate. 1 ETH = $4,713.58 and a BTC – USD conversion rate of 1 BTC = $65,667.99. (Both current as of November 15, 2021, at 12:20:35 UTC).
The company ordered 600 high-performance ASIC miners. Which will delivered in six equal tranches of 100 miners each during calendar year 2022. Beginning in January and concluding in June of the same year. This will also result in an increase of 8.8 PH/s in the Company’s self-mining Hashrate from ASIC miners. For each delivery month, for a total increase of 52.8 PH/s. In the Company’s self-mining Hashrate from ASIC miners.
Moreover, The Company has entered into Equipment Hosting Agreements for aggregate mining capacity of 37 MW. In which expected to generate up to USD$14.8 million in annual hosting and power revenues for the Company. The hosting services in Alberta, Canada also expected to begin. In the fourth quarter of 2021 and the first quarter of 2022, respectively.