Cathedra Bitcoin Provides Operations Update

Rhea-AI Summary

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) has reported significant operational changes aimed at reducing costs and improving cash flow, including a 60% payroll cut and lease cancellations. Despite challenging bitcoin mining conditions, the company maintains positive operating cash flow from its 203 PH/s hash rate, generating US$414,640 over 30 days. The final shipment of 2,135 Antminer S19J Pros is in transit, with deployment strategies in consideration. CEO AJ Scalia emphasized the focus on company survival during this period to enable shareholder benefits in future market cycles.

Positive

• Cut payroll by over 60% to enhance cash flow.
• Positive operating cash flow maintained despite adverse mining conditions.
• Trailing 30-day revenue of US$414,640 from 203 PH/s hash rate with 98% uptime.
• US$2,505,861 in cash and cash equivalents as of November 11, 2022.

Negative

• Ongoing decline in bitcoin mining conditions affecting overall operations.
• Deployment of new mining machines delayed due to shipping method choice.

TORONTO--(BUSINESS WIRE)-- (Block Height: 763,073) – 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 updates.

In the last 60 days, the Company has implemented additional measures to reduce operating expenses and increase cash flow, cutting payroll by over 60% through a combination of lay-offs and salary reductions, canceling real estate leases, and eliminating significant other general and administrative costs.

Notwithstanding the decline in bitcoin mining conditions, the Company’s existing bitcoin mining operations across its five locations continue to produce positive operating cash flow with strong uptime. As of November 11, 2022, the Company’s 203 PH/s of bitcoin mining hash rate produced trailing 30-day revenues of US$414,640 from average uptime of 98%. The Company continues to liquidate substantially all mined bitcoin daily and held US$2,505,861 in cash and cash equivalents as of November 11, 2022.

The final 2,135 Bitmain Antminer S19J Pro machines (the “S19J Pros”) from the Company’s November 2021 futures order remain in transit. Earlier this year, the Company elected to ship these machines via ocean freight rather than air freight to conserve cash. The Company continues to evaluate potential deployment opportunities for these machines that would prove resilient to continued decline in bitcoin mining conditions.

“Our primary aim is to ensure the survival of Cathedra during this challenging period, so that shareholders can benefit from the next Bitcoin bull cycle. We thank our shareholders for their continued support,” remarked AJ Scalia, CEO of Cathedra Bitcoin.

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/20221114005424/en/

Media and Investor Relations Inquiries

Sean Ty

Chief Financial Officer

ir@cathedra.com

Source: Cathedra Bitcoin Inc.

FAQ

What cost-cutting measures has Cathedra implemented?

Cathedra has reduced payroll by over 60%, canceled real estate leases, and cut other administrative costs.

What financial performance has Cathedra reported recently?

The company reported trailing 30-day revenues of US$414,640 from its bitcoin mining operations.

How much cash does Cathedra have on hand?

As of November 11, 2022, Cathedra holds US$2,505,861 in cash and cash equivalents.

What challenges is Cathedra facing in bitcoin mining?

The company faces a decline in bitcoin mining conditions, impacting operational performance.