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by Stockwatch Business Reporter

The TSX Venture Exchange lost 3.67 points to 704.46 Tuesday. David Danziger's seventh capital pool shell, Aumento Capital VI Corp., has closed its qualifying transaction and launched Cryptostar Corp. (CSTR: $0.065), a cryptocurrency miner. Cryptostar opened at eight cents, reached an intraday low of 5.5 cents, then closed at 6.5 cents on 1.13 million shares. It operates cryptocurrency mining facilities, mostly mining bitcoin, in Labrador, Utah and Iceland.

When Aumento VI listed in May, 2017, it sold a $626,400 initial public offering at 50 cents. At the time, Mr. Danziger had a shell-making record of five successes, one failure (we will return to his record shortly). This might have helped him sell a larger shell IPO than the minimum of $200,000 at 10 cents. As for Cryptostar, in connection with its going public, it sold a $21.5-million private placement at 50 cents to 132 investors in January, 2018. At the time, the value of bitcoin was just beginning to decline. It ranged between $10,000 (U.S.) and $17,000 (U.S.) that month. It then kept falling, and now each bitcoin is worth $6,500 (U.S.). Cryptocurrency miners are likely finding their operations unprofitable given the lower cryptocurrency values these days, especially because of the high electricity and maintenance costs involved in running specialized mining machines. In the first quarter of 2018, Cryptostar lost $2.76-million (U.S.) on revenue of $5.43-million (U.S.).

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