Cathedra Bitcoin Announces Second Quarter 2023 Financial Results

Rhea-AI Summary

Cathedra Bitcoin Inc. announces Q2 2023 financial and operational highlights. Mining operations produced 77.15 gross bitcoin, an increase of 19.50 bitcoin from Q2 2022. Revenue increased to C$2.9 million compared to C$2.5 million in Q2 2022. Company settled C$2.5 million of outstanding debt. Cash and bitcoin liquidity totaled approximately C$4.4 million. Strategic partnership with 360 Mining expands operating footprint to Texas. Active bitcoin mining hash rate is 387 PH/s across four states and six locations in the United States.

Positive

• Mining operations produced more bitcoin compared to last year, leading to increased revenue. Strategic partnership expands operating footprint, potentially increasing hash rate.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- (Block Height: 805,355) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQB: CBTTF) (“Cathedra,” the “Company,” or “we”), is pleased to announce the results of our operations for the second quarter and six months ended June 30, 2023 (“Q2 2023”).

Second Quarter 2023 Financial Highlights

• Our mining operations produced 77.15 gross bitcoin during Q2 2023, compared to 57.65 bitcoin during Q2 2022, an increase of 19.50 bitcoin. The increase was due primarily to the expansion of our hash rate from 231 PH/s as of June 30, 2022, to 382 PH/s as of June 30, 2023. This expansion of our hash rate more than offset an increase in network hash rate, from 214 EH/s as of June 30, 2022, to 370 EH/s as of June 30, 2023.
• We recorded revenue of C$2.9 million during Q2 2023 compared to C$2.5 million during Q2 2022, an increase of $0.4 million. The increase was due primarily to the expansion of our hash rate, which more than offset the increase in network hash rate and a decrease in the average price of bitcoin from US$32,492 during Q2 2022 to US$28,038 during Q2 2023.
• We settled C$2.5 million of the outstanding principal amount of our 3.5% senior secured convertible debentures into approximately 18.5 million common shares of the Company, which were issued at a deemed price of C$0.135 per share. As of August 29, 2023, the convertible debentures have an outstanding principal balance of C$19.9 million, which is due upon maturity on November 11, 2024.
• As of August 29, 2023, we held approximately C$3.7 million of cash and approximately C$744,300 of bitcoin (19.55 BTC) for total cash and bitcoin liquidity of approximately C$4.4 million.

Second Quarter 2023 Operational Highlights

• We completed the deployment of the remaining Bitmain Antminer S19J Pro and XP machines that we purchased in Q4 2021 at our leased data centers in Washington and a third-party hosting facility in Kentucky.
• We renewed our hosting agreement with an existing partner in Tennessee for another 12-month term which began on July 1. Under the terms of the renewed agreement, we pay a fixed rate of US$72.50 per megawatt hour for electricity and hosting services for 1,129 Bitmain Antminer S19J Pro machines and retain the ability to underclock these machines without losing rights to the full power capacity. On August 17, 2023, we informed the hosting partner of our intention to begin underclocking these machines on September 1, 2023. Through underclocking, we will reduce the break-even hash price on these machines by 12% to approximately US$46.00/PH/s/day, ensuring these machines continue to produce positive cash flow.
• We announced a strategic partnership with 360 Mining, an off-grid bitcoin mining company with a presence in Texas. With the partnership, we have expanded our operating footprint to a fourth US state and have become the only publicly listed bitcoin miner with operations utilizing both on- and off-grid energy sources. We have deployed the first of our proprietary bitcoin mining Rovers—which are mobile data centers we design and manufacture in-house—at 360 Mining’s off-grid location in Texas, with 360 Mining providing natural gas and power generation infrastructure to supply continuous electricity to our bitcoin mining infrastructure. We pay an effective rate of US$45.80 per megawatt hour for power consumed, plus 10% of gross bitcoin mined at the site. Using underclocked machines which we have repurposed from our previous partnership with Great American Mining in 2021-22, the initial deployment currently produces approximately 5 PH/s and is expected to improve to 8 PH/s in the coming weeks as we implement further optimizations. The partnership gives us the right to up to 2.0 megawatts of total power capacity, which we expect to produce at least 54 PH/s of total hash rate if fully utilized.
• As of August 29, 2023, the Company’s active bitcoin mining hash rate totaled 387 PH/s across four states and six locations in the United States.

Management Commentary

“Recent weeks have seen the improved bitcoin mining conditions of H1 2023 regress to levels comparable to most challenging periods of Q4 2022. During this time, we remain focused on finding creative, capital-efficient ways to create value for our shareholders. This focus is exemplified by our recent partnership with 360 Mining, under which we will continue to deploy idle hash rate and infrastructure with minimal capex, as well as our ongoing efforts to underclock our machines using custom firmware to ensure profitability. As always, we thank our shareholders for their continued support.”

About Cathedra Bitcoin

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQB: CBTTF) is a Bitcoin company that believes sound money and abundant energy are the keys to human flourishing. The Company has diversified bitcoin mining operations which produce 387 PH/s across four states and six locations in the United States. The Company is focused on managing and expanding its portfolio of hash rate through a diversified approach to site selection and operations, utilizing multiple energy sources across various jurisdictions.

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

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” 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 intentions and future actions of senior management, the intentions, plans and future actions of the Company, as well as the Company’s ability to successfully mine digital currency; revenue increasing as currently anticipated; the ability to profitably liquidate current and future digital currency inventory; volatility of network difficulty and, digital currency prices and the resulting significant negative impact on the Company’s operations; the construction and operation of expanded blockchain infrastructure as currently planned; and the regulatory environment of cryptocurrency in applicable jurisdictions.

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, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company has also assumed that no significant events occur outside of the Company’s normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, 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.

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Media and Investor Relations Inquiries

Sean Ty

Chief Financial Officer

ir@cathedra.com

Source: Cathedra Bitcoin Inc.