Cathedra Bitcoin Announces Sale of 60-Megawatt Bitcoin Mining Data Center in North Dakota

Rhea-AI Summary

Cathedra Bitcoin (TSXV: CBIT) (OTCQB: CBTTF) has announced the sale of its 25% stake in a 60-megawatt bitcoin mining data center in North Dakota through a binding agreement worth US$21.0 million. The facility, developed through a joint venture called Tirpitz Technology Holdco , was constructed between Q1 and Q4 2024.

The transaction, agreed upon on December 18, 2024, was subject to performance milestones that have now been met. Cathedra expects to achieve an internal rate of return exceeding 60% on its equity contribution to the joint venture. The company plans to use the proceeds to develop new data centers, acquire additional bitcoin for long-term reserves, and increase cash holdings.

Currently, Cathedra holds approximately 50.5 bitcoin, valued at approximately US$4.6 million, equivalent to 6 satoshis per share.

Positive

• Sale of North Dakota facility stake for US$21.0 million
• Expected IRR exceeding 60% on equity contribution
• Current holdings of 50.5 bitcoin worth US$4.6 million

Negative

• Divestment of significant mining infrastructure asset

Toronto, Ontario--(Newsfile Corp. - March 4, 2025) - (Block Height: 886,250) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTCQB: 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, is pleased to announce that the shareholders of Tirpitz Technology Holdco LLC ("Tirpitz" or the "JV"), a joint venture that owns and operates a 60-megawatt bitcoin mining data center in North Dakota (the "North Dakota Facility"), have entered into a binding agreement to sell 100% of the membership units in the JV to a third-party bitcoin miner for total cash consideration of approximately US$21.0 million (the "Transaction"). Through a wholly owned subsidiary, Cathedra holds a 25% membership interest in the JV which will be sold in the Transaction. The agreement was entered into on December 18, 2024, and was contingent upon the completion of several performance milestones which were recently achieved.

Kungsleden, Inc., ("Kungsleden") began development of the North Dakota Facility in Q1 2024, and completed construction of the full 60-megawatt data center in Q4 2024, after the business combination between Kungsleden and Cathedra had been consummated. Cathedra expects to realize an internal rate of return in excess of 60% on its equity contribution to the JV. The Transaction is expected to close in the coming weeks, subject to closing conditions and required regulatory approvals.

"The sale of the North Dakota Facility demonstrates our ability to generate attractive returns for our shareholders through our low-cost construction capabilities, whether by developing to sell or operating these assets ourselves," remarked Drew Armstrong, President and Chief Operating Officer of Cathedra.

The Company intends to use the proceeds from the Transaction, net of any payables associated with the North Dakota Facility, to develop new data centers, acquire additional bitcoin for its long-term balance sheet reserves, and increase its cash holdings.

At time of publication, the Company holds approximately 50.5 bitcoin worth approximately US$4.6 million and amounting to approximately 6 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, as well as a 60-megawatt data center in North Dakota, a joint venture in which Cathedra is a 25% partner. 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:

Antonin Scalia
Chief Executive Officer
+1 (604) 259-0607
ir@cathedra.com

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, including the potential sale of the North Dakota Facility, the proceeds thereof and the use of such proceeds, are forward-looking information. Forward-looking information contained in this news release includes but is not limited to the goal of maximizing its per-share bitcoin holdings. 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: the inability to complete the sale of the North Dakota Facility on the terms as announced or at all; the inability to apply the proceeds of the sale of the North Dakota Facility to develop new data centers on an economic basis or to acquire additional bitcoin as a profitable holding; changes in the Company's relationships, including with regulatory bodies, employees, customers and competitors; 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; the risks and uncertainties associated with foreign markets; the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine Bitcoin is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; and the power purchase agreements and economics thereof may not be as advantageous as expected. Additionally, the forward-looking statements contained herein may be affected by risks and uncertainties in the business of Cathedra and general market conditions. For further information concerning these risks and uncertainties and other risks and uncertainties, please see the Company's filings under the Company's SEDAR+ profile on www.sedarplus.ca, including but not limited to the Company's management information circular dated June 18, 2024 and the Company's most recent interim and annual management discussion and analysis. 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 from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended and such changes could be material, including factors that are currently unknown to or deemed immaterial by the Company. Readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243217

FAQ

How much is Cathedra Bitcoin (CBTTF) selling its North Dakota mining facility for?

The entire facility is being sold for US$21.0 million, with Cathedra owning a 25% stake in the joint venture.

What return on investment is CBTTF expecting from the North Dakota facility sale?

Cathedra expects to realize an internal rate of return (IRR) exceeding 60% on its equity contribution.

How many bitcoins does CBTTF currently hold in its reserves?

Cathedra holds approximately 50.5 bitcoin, valued at US$4.6 million (6 satoshis per share).

What will CBTTF do with the proceeds from the North Dakota facility sale?

The proceeds will be used to develop new data centers, acquire additional bitcoin for long-term reserves, and increase cash holdings.

When was the North Dakota bitcoin mining facility completed by CBTTF?

The 60-megawatt facility was completed in Q4 2024, after construction began in Q1 2024.