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Cathedra Bitcoin Announces Cancellation of Previously Announced Non-Brokered Offering

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Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) has cancelled its previously announced non-brokered private placement of 25,000,000 units at C$0.10 per unit. CEO AJ Scalia cited unfavorable capital market conditions as the reason for cancellation. The company is now exploring alternative transactions, including profit-sharing deals with hosting clients, to increase its bitcoin-per-share holdings.

Cathedra recently completed a strategic merger with Kungsleden, Inc., a U.S.-based bitcoin mining data center developer. The company has energized an additional 20 megawatts at its North Dakota data center, bringing the total to 30 megawatts out of an expected 60 megawatts. Cathedra currently holds approximately 44.3 bitcoin, valued at US$3.0 million, equivalent to 5 satoshis per share.

Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) ha cancellato il suo precedente annuncio di collocamento privato non intermediato di 25.000.000 di unità a C$0,10 per unità. Il CEO AJ Scalia ha citato condizioni sfavorevoli del mercato dei capitali come motivo della cancellazione. L'azienda sta ora esplorando operazioni alternative, inclusi accordi di condivisione dei profitti con i clienti di hosting, per aumentare le sue partecipazioni in bitcoin per azione.

Cathedra ha recentemente completato una fusione strategica con Kungsleden, Inc., uno sviluppatore di centri dati per il mining di bitcoin con sede negli Stati Uniti. L'azienda ha attivato ulteriori 20 megawatt presso il suo centro dati nel Dakota del Nord, portando il totale a 30 megawatt su un previsto di 60 megawatt. Attualmente Cathedra detiene circa 44,3 bitcoin, valutati 3,0 milioni di dollari USA, equivalenti a 5 satoshi per azione.

Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) ha cancelado su colocación privada no intermediada previamente anunciada de 25.000.000 de unidades a C$0.10 por unidad. El CEO AJ Scalia citó condiciones desfavorables en el mercado de capitales como la razón de la cancelación. La empresa ahora está explorando transacciones alternativas, incluidos acuerdos de participación en beneficios con clientes de alojamiento, para aumentar sus tenencias de bitcoin por acción.

Cathedra recientemente completó una fusión estratégica con Kungsleden, Inc., un desarrollador de centros de datos para minería de bitcoin con sede en EE. UU. La empresa ha energizado 20 megavatios adicionales en su centro de datos en Dakota del Norte, llevando el total a 30 megavatios de un esperado 60 megavatios. Actualmente, Cathedra posee aproximadamente 44.3 bitcoin, valorados en 3.0 millones de dólares estadounidenses, equivalentes a 5 satoshis por acción.

Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF)는 이전에 발표된 비중개 사모펀딩을 취소했습니다. 이는 2,500만 유닛을 유닛당 C$0.10의 가격으로 판매하기 위한 것입니다. CEO AJ Scalia는 자본 시장의 불리한 조건을 취소 사유로 언급했습니다. 회사는 이제 대체 거래 탐색, 호스팅 클라이언트와의 이익 공유 계약 등을 통해 주당 비트코인 보유량을 증가시키기 위해 노력하고 있습니다.

Cathedra는 최근 Kungsleden, Inc.와 전략적 합병을 완료했습니다, 미국에 본사를 둔 비트코인 채굴 데이터 센터 개발업체입니다. 이 회사는 노스다코타 데이터 센터에 추가로 20메가와트의 전력을 공급했습니다, 총 30메가와트가 예상 60메가와트 중 차지하고 있습니다. Cathedra는 현재 약 44.3 비트코인을 보유하고 있으며, 이는 300만 달러에 해당하며, 주당 5사토시의 가치입니다.

Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) a annulé son placement privé non intermédié précédemment annoncé de 25 000 000 d'unités à 0,10 C$ l'unité. Le PDG AJ Scalia a cité des conditions de marché des capitaux défavorables comme raison de cette annulation. L'entreprise explore désormais des transactions alternatives, y compris des accords de partage des bénéfices avec des clients d'hébergement, afin d'accroître ses participations en bitcoin par action.

Cathedra a récemment terminé une fusion stratégique avec Kungsleden, Inc., un développeur de centre de données de minage de bitcoin basé aux États-Unis. L'entreprise a activé 20 mégawatts supplémentaires dans son centre de données du Dakota du Nord, portant le total à 30 mégawatts sur une prévision de 60 mégawatts. Actuellement, Cathedra détient environ 44,3 bitcoin, évalués à 3,0 millions de dollars US, soit 5 satoshis par action.

Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) hat seinen zuvor angekündigten nicht vermittelte Privatplatzierung von 25.000.000 Einheiten zu je 0,10 C$ pro Einheit abgesagt. CEO AJ Scalia nannte ungünstige Kapitalmarkbedingungen als Grund für die Absage. Das Unternehmen erforscht nun alternative Transaktionen, einschließlich Gewinnbeteiligungsvereinbarungen mit Hosting-Kunden, um seine Bitcoin-Anteile pro Aktie zu erhöhen.

Cathedra hat kürzlich eine strategische Fusion mit Kungsleden, Inc. abgeschlossen, einem in den USA ansässigen Entwickler von Bitcoin-Mining-Datenzentren. Das Unternehmen hat zusätzliche 20 Megawatt in seinem Datenzentrum in North Dakota aktiviert und damit die Gesamtleistung auf 30 Megawatt erhöht, bei einem erwarteten Gesamtbedarf von 60 Megawatt. Cathedra hält derzeit etwa 44,3 Bitcoin, im Wert von 3,0 Millionen US-Dollar, was 5 Satoshis pro Aktie entspricht.

Positive
  • Strategic merger with Kungsleden, Inc., a fast-growing bitcoin mining data center developer
  • Energized additional 20 megawatts at North Dakota data center, totaling 30 megawatts
  • Holds 44.3 bitcoin worth approximately US$3.0 million
  • Potential to unlock US$3.2 million from warrant repricing at C$0.12 strike price
Negative
  • Cancellation of previously announced non-brokered private placement
  • Unfavorable capital market conditions for equity offering

Toronto, Ontario--(Newsfile Corp. - October 18, 2024) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) ("Cathedra" or the "Company"), a bitcoin company that develops and operates digital infrastructure assets with the goal of maximizing its per-share bitcoin holdings, announces that further to the Company's press release dated September 19, 2024, it will not be proceeding with the non-brokered private placement financing of 25,000,000 units of the Company at a price of C$0.10 per Unit.

"We initially viewed a LIFE offering as a means to quickly acquire bitcoin in the open market at below US$60,000, thereby increasing the Company's per-share bitcoin holdings. In recent weeks, it has become clear that capital market conditions are not conducive to an equity offering at this time," remarked AJ Scalia, CEO of the Company. "Instead, we are evaluating several alternative transactions and strategies that we believe would result in even greater bitcoin-per-share accretion, including deals with hosting clients which involve a bitcoin profit-share construct for Cathedra. Furthermore, our recent warrant repricing has the potential to unlock US$3.2 million of proceeds at a strike price of C$0.12, which we intend to invest in bitcoin and bitcoin-generating assets if and when these warrants are exercised. We will continue to assess financing alternatives as they arise."

In July, the Company completed a strategic merger with Kungsleden, Inc., a U.S.-based developer and operator of bitcoin mining data centers that has grown its owned data center capacity at a 127% CAGR since inception in 2022. As of market close on October 17, 2024, the pro forma Company's market capitalization totaled approximately US$50 million.

In recent weeks, the Company energized another 20 megawatts of capacity at its North Dakota data center, in which Cathedra is a 25% partner, bringing the total energized capacity on-site to 30 megawatts of the total expected 60 megawatts. The Company expects to energize the remaining 30 megawatts by the end of October.

At time of publishing, the Company holds approximately 44.3 bitcoin worth approximately US$3.0 million and amounting to approximately 5 satoshis (or "sats") per share.

About Cathedra Bitcoin

Cathedra Bitcoin Inc. develops and operates digital infrastructure assets across North America with the goal of maximizing its per-share bitcoin holdings. The Company hosts bitcoin mining clients across its portfolio of three data centers (30 megawatts total) in Tennessee and Kentucky. Additionally, Cathedra is a 25% partner in a joint venture that is developing a 60-megawatt data center in North Dakota which will also host bitcoin miners upon its expected completion. Cathedra also operates a fleet of proprietary bitcoin mining machines at its own and third-party data centers, producing approximately 400 PH/s of hash rate. Cathedra is headquartered in Vancouver and its shares trade on the TSX Venture Exchange under the symbol CBIT and in the OTC market under the symbol CBTTF.

For more information about Cathedra, visit cathedra.com or follow Company news on Twitter at @CathedraBitcoin or on Telegram at @CathedraBitcoin.

Media and Investor Relations Inquiries

Please contact:
AJ Scalia
CEO
ir@cathedra.com

Cautionary Statement

Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company, are forward-looking information. Other forward-looking information includes but is not limited to information concerning the future objectives of the Company and the availability of alternative financing arrangements. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made. The Company has also assumed that no significant events occur outside of its normal course of business.

Additionally, these forward-looking statements may be affected by risks and uncertainties in the business of Cathedra and general market conditions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect Cathedra's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Cathedra believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation and the costs associated with compliance; unanticipated costs; changes in market conditions impacting the average revenue per MWh, and the risks and uncertainties associated with foreign markets. Additionally, the forward-looking statements contained herein may be affected by risks and uncertainties in the business of Cathedra and general market conditions. Please see the Company's management information circular dated June 18, 2024 which is available on the Company's SEDAR+ profile on www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. Readers should not place undue reliance on forward-looking information. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227031

FAQ

Why did Cathedra Bitcoin (CBTTF) cancel its non-brokered private placement?

Cathedra Bitcoin cancelled the private placement due to unfavorable capital market conditions, as stated by CEO AJ Scalia. The company is now exploring alternative transactions to increase its bitcoin-per-share holdings.

What is the current status of Cathedra Bitcoin's (CBTTF) North Dakota data center?

Cathedra Bitcoin has energized 30 megawatts out of the expected 60 megawatts at its North Dakota data center. The company plans to energize the remaining 30 megawatts by the end of October 2024.

How many bitcoin does Cathedra Bitcoin (CBTTF) currently hold?

As of October 18, 2024, Cathedra Bitcoin holds approximately 44.3 bitcoin, valued at US$3.0 million, which amounts to about 5 satoshis per share.

What was the recent strategic merger completed by Cathedra Bitcoin (CBTTF)?

In July 2024, Cathedra Bitcoin completed a strategic merger with Kungsleden, Inc., a U.S.-based developer and operator of bitcoin mining data centers that has grown its owned data center capacity at a 127% CAGR since 2022.

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