Cathedra Bitcoin Provides Operational and Corporate Updates

Rhea-AI Summary

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) announced operational updates, including the installation of 375 Bitmain Antminer S19J Pro machines, boosting its bitcoin mining hash rate by 38 PH/s. The company has delayed the delivery of an additional 372 machines due to market conditions. They also sold 600 S19 XP machines for US$4,116,000, using proceeds to reduce a C$25,000,000 convertible debenture. Additionally, 400 underperforming machines were decommissioned at the North Dakota Mine, helping to lower operational costs.

Positive

• Installed 375 Antminer S19J Pro machines, increasing hash rate by 38 PH/s.
• Sold 600 Antminer S19 XP machines for US$4,116,000, strengthening the balance sheet.
• Decommissioned 400 underperforming machines, reducing operating expenses.

Negative

• Delayed delivery of 372 S19J Pro machines due to transit issues.
• Temporarily paused major capital expenditures to conserve cash amid market downturn.

TORONTO--(BUSINESS WIRE)-- (Block Height: 744,592) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, today announced the following operational and corporate updates.

Update on Order for Bitmain Antminer S19J Pros

The Company recently installed 375 machines from its April and May batches of Bitmain Antminer S19J Pro machines (the “S19J Pros”) at third-party datacenters in Tennessee (the “Tennessee Mine”) and Kentucky (the “Kentucky Mine”), increasing the Company’s bitcoin mining hash rate by 38 PH/s. The remaining 372 machines from the May batch have been delayed in transit and are expected to be delivered to the Kentucky Mine in the coming days. Upon installation, these remaining machines will provide an additional 37 PH/s to the Company’s total hash rate.

In light of the downturn in bitcoin mining conditions, the Company has temporarily paused all major capital expenditures in an effort to conserve cash until the market outlook improves. Consequently, the Company has elected to forgo making final payment on its June batch of S19J Pros (the “June S19J Pros”) and will instead take delivery of a reduced allocation of 522 machines (versus the 750, as originally contemplated). The Company may elect to accept delivery of reduced allocations for the July, August, and September S19J Pro batches as well, depending on market conditions at the time. The June S19J Pros are being prepared for shipment and are expected to arrive at the Tennessee Mine in the coming weeks, where they will contribute an additional 52 PH/s to the Company’s total hash rate.

Update on Order for Bitmain Antminer S19 XPs

The Company recently completed the sale of 600 Bitmain Antminer S19 XP machines (the “S19 XPs”), which were scheduled to be delivered in six equal tranches from July through December 2022, for total proceeds of US$4,116,000. The net proceeds from the sale will be used to reduce the C$25,000,000 face value of the Company’s outstanding convertible debenture, further fortifying the Company’s balance sheet.

North Dakota Operations Update

At its North Dakota operation (the “North Dakota Mine”), the Company recently decommissioned approximately 400 machines that have demonstrated a history of underperformance since they were purchased under previous management in 2021. The Company intends to ship these machines to its manufacturing facility in New Hampshire, where any defective machines will be serviced and prepared for redeployed in the future. Remaining hash rate at the North Dakota Mine totals 115 PH/s across 10 bitcoin mining containers.

The Company continues to take steps to improve its operating margins at the North Dakota Mine. By decommissioning the underperforming machines, the Company was able to consolidate performing machines into fewer containers and remove several generators, thereby reducing its ongoing operating expenses.

About Cathedra Bitcoin

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) is a Bitcoin company that develops and operates world-class bitcoin mining infrastructure.

Cathedra believes sound money and abundant energy are the fundamental ingredients to human progress and is committed to advancing both by working closely with the energy sector to secure the Bitcoin network. Today, Cathedra’s diversified bitcoin mining operations total 229 PH/s and span four states and five locations in the United States. The Company is focused on 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 expected deployment of an additional miners, 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. Such factors include, among others: the ability of the Company to achieve its corporate objectives or otherwise advance the progress of the Company; risks related to the international operations; the Company's inability to obtain any necessary permits, consents or authorizations required for its activities; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on capital market conditions, restriction on labor and international travel and supply chains; general market and industry conditions; and those risks set out in the Company’s public documents filed on SEDAR. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220711005822/en/

Media and Investor Relations Inquiries

Please contact:

Sean Ty

Chief Financial Officer

ir@cathedra.com

Source: Cathedra Bitcoin Inc.

FAQ

What was Cathedra Bitcoin's hash rate increase in the recent update?

Cathedra Bitcoin increased its hash rate by 38 PH/s with the installation of 375 Antminer S19J Pro machines.

How much did Cathedra Bitcoin earn from the sale of Antminer S19 XP machines?

Cathedra Bitcoin generated US$4,116,000 from the sale of 600 Antminer S19 XP machines.

What actions is Cathedra Bitcoin taking in response to market conditions?

Cathedra Bitcoin has temporarily paused major capital expenditures to conserve cash due to a downturn in bitcoin mining conditions.

What happened to the underperforming machines at Cathedra's North Dakota Mine?

Approximately 400 underperforming machines were decommissioned to improve operational margins at the North Dakota Mine.

When is the delivery of the delayed Antminer S19J Pro machines expected?

The delayed 372 Antminer S19J Pro machines are expected to be delivered to the Kentucky Mine in the coming days.