Cryptostar (CSTR.V) and an Alberta-based company started an equipment hosting agreement as of Sept 22, 2021, for 10 megawatts of mining capacity to be used in Alberta, according to a press release.
The company ordered 600 high performance ASIC rigs from an affiliate of the Alberta customer, including a total hash rate of 52.8 petahashes per second fort heir self-mining aims.
“We are excited that the Alberta customer has selected Cryptostar as its hosting provider. We are looking forward to providing hosting services to the Alberta customer and continuing our relationship with their group,” said David Jellins, president and CEO of Cryptostar.
Given the recent kerfluffle with China and its impact on the global cryptocurrency industry, this bit of diversification is a strong move for companies like Cryptostar. They’re not that big, especially when compared to other crypto-monsters like Riot Blockchain (RIOT.Q), Marathon Digital Holdings (MARA.Q) or Hut 8 Mining (HUT.T), each of which have taken a substantial hit due to China’s crackdown.
Source: stockwatch.comSpecifically, the company is down by half a penny, indicating that China’s recent actions haven’t affected the company any which way, which is probably a good thing. And it should be that way—beyond simple mining, they’re also working as an electricity aggregator, and providing real estate for small actors in the space, and both of those are lucrative side-gigs to their primary function as miner.
Regardless, the terms of the hosting agreement has them providing services and infrastructure to the Alberta customer for 10 metawatts of capacity.
Here are the highlights:
- Annual hosting and power revenues for the company of up to $5.3-million (U.S.);
- Initial hosting term of 36 months, with the option to renew for an additional 36-month term;
- Hosting services for the Alberta customer to commence in Q1 2022.
They’re also picking up 600 more ASIC rigs from the customer, in six equal shipments of 100 miners during 2022, which should boost their self-mining hash rate by 8.8 petahashes per second each month. When they’re completely deployed, the total hashrate will be 103.6 petahashes per second, and what that means is that they’ll be able to generate 21.1 bitcoin per month based on the present difficulty levels.
The only CAVEAT to mention here is that difficulty levels fluctuate every few weeks, and with countries like China and India circling the wagons on cryptocurrency, and the overall side-eye the United States has been giving crypto, it’s difficult to tell where Bitcoin is going to be in that time.
It could be dead simple to mine but it could be worth considerably less. It could be far more difficult. It’s hard to tell. What we should all be curious about is what’s the next move for crypto after the China business is done.
—Joseph Morton
