Color Star Announces a Significant Milestone in its Cryptocurrency Mining Business

Rhea-AI Summary

Color Star Technology (Nasdaq: ADD) has announced a major development in its cryptocurrency mining operations. The company has successfully deployed 10,000 Bitmain Antminer T21 rigs at its facility in Kazakhstan, marking its entry into the global Bitcoin mining sector. In its first month of operation in April, the mining farm demonstrated significant productivity, generating approximately 29 Bitcoins (BTC). Color Star, traditionally known for its entertainment technology and online education services, is now diversifying its business model through this strategic expansion into cryptocurrency mining. The company emphasizes its commitment to monitoring mining operations and market conditions to optimize shareholder value through operational efficiency.

Positive

• Successfully deployed 10,000 Bitmain Antminer T21 mining rigs
• Generated 29 Bitcoins in the first month of operation
• Strategic diversification from entertainment technology into cryptocurrency mining
• Established presence in Kazakhstan, known for lower energy costs

Negative

• Significant exposure to volatile cryptocurrency market prices
• High energy consumption and operational costs associated with mining operations
• Regulatory risks in Kazakhstan and cryptocurrency markets
• Deviation from core entertainment and education business model

Insights

Cryptocurrency Mining Expert

Color Star deploys 10,000 Bitcoin mining rigs in Kazakhstan, generating 29 BTC in first month, signaling major business pivot.

Color Star's deployment of 10,000 Bitmain Antminer T21 rigs in Kazakhstan marks a significant pivot from their core entertainment technology business into cryptocurrency mining. The T21 is Bitmain's newer generation ASIC miner with approximately 190 TH/s hashrate and 5200W power consumption. With 10,000 units, their theoretical hashrate approaches 1.9 EH/s, representing roughly 0.5% of Bitcoin's total network hashrate.

Their reported production of 29 Bitcoins in April aligns with expected output for this hardware deployment at current network difficulty. At current BTC prices, this represents monthly revenue of approximately $1.7 million, though profitability depends heavily on Kazakhstan's electricity costs (typically $0.04-0.06/kWh) and their hosting agreement terms.

This transition appears strategically timed with Bitcoin's recent halving event, though the reduced block rewards may impact their forward-looking profitability. Kazakhstan offers advantages for mining operations including relatively low electricity costs and cooler climate, though regulatory uncertainty remains a concern in the region. The scale of this deployment suggests a substantial capital investment exceeding $50 million, raising questions about how this entertainment technology company funded such expansion.

The company's ability to sustain these operations will depend heavily on Bitcoin price performance, network difficulty adjustments, and their operational efficiency in a highly competitive mining landscape.

New York, May 29, 2025 (GLOBE NEWSWIRE) -- Color Star Technology Co., Ltd. (Nasdaq: ADD) (“Color Star” or the “Company”), a global entertainment technology company specializing in the integration of artificial intelligence and technology in the entertainment industry, today announced a significant milestone in the company’s new cryptocurrency mining business.

The Company has deployed 10,000 Bitmain Antminer T21 rigs at the facility in Kazakhstan, positioning Color Star as a significant emerging player in the global Bitcoin mining landscape. During its first month of operation in April, the cryptocurrency mining farm generated approximately 29 Bitcoins (BTC).

Color Star will continue to monitor the performance of its mining operations and the broader cryptocurrency market to determine its strategic decisions. The Company remains committed to maximizing returns on investment and delivering long-term value to its shareholders through operational efficiency and technological advancement.

About Color Star Technology Co., Ltd.
Color Star Technology Co., Ltd. (Nasdaq: ADD) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries, Color Metaverse Pte. Ltd. and CACM Group NY, Inc. The Company’s online education is provided through its Color World music and entertainment education platform. The Company has also commenced operations in its new cryptocurrency mining business. More information about the Company can be found at www.colorstarinternational.com and www.colorstar.investorroom.com.

Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development, including the development of the metaverse project; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market internationally where ADD conducts its business; reputation and brand; the impact of competition and pricing; government regulations; the ability of Color Star to meet NASDAQ listing standards in connection with the consummation of the transaction contemplated therein; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Color Star. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.

Contact
Color Star Investor Relations
Office Number No. 1003, 9th Floor,
7 World Trade Center, Suite 4621
New York NY 10007
Office: (212) 410-5186
Email ir@colorstarinternational.com

FAQ

How many Bitcoin mining rigs has Color Star (ADD) deployed in Kazakhstan?

Color Star has deployed 10,000 Bitmain Antminer T21 rigs at its facility in Kazakhstan.

How many Bitcoins did Color Star (ADD) mine in their first month of operations?

Color Star mined approximately 29 Bitcoins during its first month of operation in April.

What is Color Star's (ADD) main business before entering cryptocurrency mining?

Color Star's main business focuses on entertainment technology, providing online entertainment performances and online music education services through its Color World platform.

Where is Color Star (ADD) conducting its Bitcoin mining operations?

Color Star is conducting its Bitcoin mining operations at a facility in Kazakhstan.

What type of mining equipment is Color Star (ADD) using for Bitcoin mining?

Color Star is using Bitmain Antminer T21 rigs for its Bitcoin mining operations.