CryptoStar Corp. Announces Third Quarter 2019 Financial Results

Provided By PR Newswire

Last update: Nov 15, 2019

CryptoStar Corp. Announces Third Quarter 2019 Financial Results

Canada NewsWire

TORONTO, Nov. 15, 2019

TORONTO, Nov. 15, 2019 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, is pleased to announce its financial results for the third quarter ended September 30, 2019. For the full condensed consolidated interim financial statements and management discussion and analysis for the third quarter ended September 30, 2019, please visit SEDAR at www.sedar.com. All values in this news release are in United States Dollars unless otherwise specified.

Revenue of $3.2 million for Q3.
Adjusted EBITDA of $549,095 for Q3.
309 Bitcoin mined in Q3.
CryptoStar Corp. was awarded the "Top 10 Mining Farms Loved by Miners" award conferred at the World Digital Mining Summit (WDMS) on October 8, 2019 held in Frankfurt, Germany.

	For the Three Months Ended September 30, 2019	For the Three Months Ended September 30, 2018
INCOME FROM MINING OF DIGITAL CURRENCY
Income from mining of digital currency	3,209,122	3,877,994
Realized gain (loss) of digital currency	150,535	(84,672)
Direct operating and maintenance costs	(2,339,066)	(2,209,008)
Mining profit/loss	1,020,591	1,584,314
Mining profit margin	32%	41%
Other Operating Expenses	(471,496)	(499,308)
Gross profit/loss	549,095	1,085,006
Depreciation	(1,266,009)	(2,766,920)
Foreign exchange (gain)	(17)	—
Recognition and change in fair value of warrant	—	200,482
IFRS 16 Right-of-Use Adjustment	(63,467)
Reversal (Impairment) of mining and digital currency	(422,341)	1,960
Net income (loss) before income taxes	(1,202,739)	(1,479,472)
Income taxes	—	(362,338)
Net income (loss) and comprehensive income (loss)	(1,202,739)	(1,117,134)
Adjusted EBITDA	549,095	1,085,006
Adjusted EBITDA margin	17%	28%
(Loss) earnings per share, basic and diluted	(0.006)	(0.005)
Weighted average shares, basic and diluted	208,752,800	205,500,000
Bitcoin mined	309	580
Average Bitcoin price when exchanged (sold) during the period	10,907	6,508

About CryptoStar Corp.:

CryptoStar has one of the world's largest cryptocurrency mining operations with data centres located in the U.S.A., Canada and Iceland. CryptoStar is currently dedicated to further expansion into low cost energy regions in North America and around the globe.

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.

Non-GAAP Measures

This press release presents certain non-GAAP ("GAAP" refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company's performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.

"EBITDA" (Earnings before Interest, Taxes, Depreciation, and Amortization) represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
"Adjusted EBITDA" represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on remeasurement of digital assets, and costs associated with one-time transactions (such as listing fees).
"Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of revenue.
"Mining Profit" represents gross profit (revenue less cost of revenue), excluding depreciation.
"Mining Profit Margin" represents Mining Profit as a percentage of revenue.

SOURCE CryptoStar Corp.