CryptoStar Shutters Alberta Facility After Power Provider Shuts Down

Tis the season for bad news, and did CryptoStar Corp (TSXV: CSTR) deliver this morning! The company this morning provided an update on its operations in Alberta, Canada as they related to data center operations, in which they state that the facility has effectively been shut down.

It seems that Avila Energy, whom the firm partnered with for their natural gas power generation site, has seen their generation site shut down. The unexpected shutdown has resulted in the firm being unable to run its data centre operation simply due to the lack of power to run the miners.

Due to the shutdown, its self-mining hashrash of 53.5 GH/s from GPU miners and 50.3 PH/s hashrate from ASIC miners has effectively stopped at the site. The miners are expected to be redeployed “as expeditiously as possible.”

The firm has also lost a related contract for equipment hosting of up to 10MW in mining capacity as a result of the facility suddenly being closed. The contract was expected to bring in up to US$5.3 million in annual revenues for the firm. The company has not yet indicated whether a separate 5 MW arrangement, with expected annual revenue of US$2.6 million, has been cancelled.

Cryptostar Corp last traded at $0.14 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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