Cathedra Bitcoin Provides Operations and Corporate Update

Rhea-AI Summary

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) has provided updates regarding its bitcoin mining operations. The Company completed the installation of 372 Bitmain Antminer S19J Pro machines, producing around 203 PH/s, following a hosting agreement in Tennessee. A partnership with Great American Mining ended, with plans to redeploy remaining machines. The Company anticipates deploying additional machines by Q4 2022, potentially increasing its hash rate to 417 PH/s. Furthermore, a long-term equity incentive plan has been adopted, approved by shareholders on September 6, 2022.

Positive

• Completion of installation for 372 mining machines, enhancing operational capacity.
• Expected increase in hash rate to approximately 417 PH/s with further deployments.

Negative

• End of the partnership with Great American Mining may limit operational capacity until redeployment.

TORONTO--(BUSINESS WIRE)-- (Block Height: 758,131) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, today announced the following operations and corporate updates.

Operations Update

On September 28, 2022, the Company entered into a hosting agreement (the “Hosting Agreement”) under which it has deployed the remaining 372 machines from its May batch of Bitmain Antminer S19J Pro machines (the “Hosted Machines”) at a third-party data center in Tennessee. Under the terms of the Hosting Agreement, which lasts for an initial term of 12 months, the Company will pay a fixed rate of seven cents (US$0.07) per kilowatt hour, plus five percent (5%) of gross bitcoin revenue produced by the Hosted Machines. The installation of the Hosted Machines was completed on October 10, 2022, and the Company’s diversified bitcoin mining operations now produce approximately 203 PH/s.

Additionally, the Company concluded its partnership with Great American Mining (“GAM”) as planned, retiring the last of its machines and containers in September. The Company tendered four of its containers from the North Dakota site to GAM in exchange for waived power and generator expenses at the conclusion of the partnership. The Company has relocated the remaining eight containers and all machines into storage until such time as they can be redeployed at a profitable site.

The Company continues to evaluate opportunities to deploy the Bitmain Antminer S19J Pro machines from its July (635 units), August (750 units), and September (750 units) orders at a competitive cost. The Company expects to deploy these machines in Q4 2022, increasing its total active hash rate to approximately 417 PH/s.

Long-Term Incentive Plan Adoption

The Company also announces the proposed adoption of its long-term equity incentive plan (the “LTIP”), which was approved by the Company’s shareholders at its annual and special meeting of shareholders held on September 6, 2022. The LTIP includes a 10% “rolling” option plan permitting a maximum of 10% of the issued and outstanding common shares of the Company as at the date of any option grant to be reserved for option grants, and a fixed plan permitting up to 11,500,000 common shares of the Company to be reserved for the grant of restricted share units.

Please refer to the Company’s management information circular dated July 18, 2022, which is available under the Company’s profile at www.sedar.com, for a copy and summary of the LTIP.

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 203 PH/s and span three 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221011005577/en/

Media and Investor Relations Inquiries

Sean Ty

Chief Financial Officer

ir@cathedra.com

Source: Cathedra Bitcoin Inc.

FAQ

What recent updates has Cathedra Bitcoin Inc. provided regarding its operations?

Cathedra Bitcoin Inc. announced the installation of 372 mining machines and plans for further deployments to increase hash rate.

What is the expected hash rate for Cathedra Bitcoin Inc. after further deployments?

The Company expects to reach a total hash rate of approximately 417 PH/s after deploying additional machines.

When was the long-term equity incentive plan approved by Cathedra Bitcoin's shareholders?

The long-term equity incentive plan was approved by shareholders on September 6, 2022.

What is the significance of the hosting agreement entered by Cathedra Bitcoin Inc.?

The hosting agreement allows Cathedra to operate its mining machines at a fixed cost, enhancing its mining operations.