CryptoStar Corp. Announces First Quarter 2019 Financial Results

TORONTO, May 27, 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 first quarter ended March 31, 2019. For the full condensed consolidated interim financial statements and management discussion and analysis for the first quarter ended March 31, 2019, please visit SEDAR at www.sedar.com. All values in this news release are in United States Dollars unless otherwise specified.

• Revenue of $1.9 million for Q1.
• Adjusted EBITDA loss of $811,441 for Q1.
• 517 Bitcoin mined in Q1.

	For the Three Months Ended March 31, 2019	For the Three Months Ended March 31, 2018
INCOME FROM MINING OF DIGITAL CURRENCY
Income from mining of digital currency	1,933,115	5,439,288
Impairment or realized gain (loss) of digital currency	(19,822)	(1,206,410)
Direct operating and maintenance costs	(2,250,880)	(877,550)
Mining profit/loss	(337,587)	3,355,328
Mining profit margin	-17%	62%
Other Operating Expenses	(473,854)	(803,846)
Gross profit/loss	(811,441)	2,551,482
Depreciation	(1,240,616)	(1,629,980)
Foreign exchange (gain)	864	52,046
Recognition and change in fair value of warrant	—	(3,509,040)
Impairment on mining equipment	—	—
Net income (loss) before income taxes	(2,051,193)	(2,535,492)
Income taxes	—	233,270
Net income (loss) and comprehensive income (loss)	(2,051,193)	(2,768,762)
Adjusted EBITDA	(811,441)	2,551,482
Adjusted EBITDA margin	-42%	47%
(Loss) earnings per share, basic and diluted	(0.010)	(0.019)
Weighted average shares, basic and diluted	205,931,531	146,544,143
Bitcoin mined	517	521

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.

CryptoStar Corp., Attention: David Jellins, President and Chief Executive Officer, Email: [email protected], W: www.cryptostar.com