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About Cathedra Bitcoin Inc.
Cathedra Bitcoin Inc. (TSXV: CBIT, OTCQB: CBTTF) is a North American developer and operator of high-density compute infrastructure assets with a mission to maximize per-share bitcoin holdings for its shareholders. Headquartered in Vancouver, the company operates at the intersection of digital infrastructure and cryptocurrency, with a diversified portfolio that includes bitcoin mining, hosting services, and strategic partnerships.
Core Business Model
Cathedra Bitcoin employs a hybrid business model that combines self-mining bitcoin operations with hosting services for institutional clients. This dual approach allows the company to generate revenue from mining bitcoin using its proprietary fleet of machines, while also leveraging its data center infrastructure to host third-party clients under fixed-rate and profit-sharing agreements. By diversifying its revenue streams, Cathedra mitigates risks associated with bitcoin price volatility and network difficulty increases.
Infrastructure and Operations
The company owns and operates a portfolio of data centers across North America, including facilities in Tennessee, Kentucky, and North Dakota. These data centers collectively offer over 95 megawatts of capacity, with Cathedra holding a 25% stake in its 60-megawatt North Dakota facility through a joint venture. The company also recently announced plans to develop an additional 10-megawatt greenfield bitcoin mining data center in Tennessee, further expanding its operational footprint.
Strategic Partnerships and Innovation
Cathedra has established key partnerships to enhance its operational efficiency and market reach. Notable collaborations include a profit-sharing agreement with Compass Mining to host 10 megawatts of bitcoin mining equipment and a partnership with Synota Inc. to streamline hosting payments through automated settlement tools. These partnerships not only improve cash flow cycles but also align with Cathedra's goal of accumulating bitcoin opportunistically.
Market Position and Differentiation
In a competitive landscape that includes major players like Riot Platforms and Marathon Digital Holdings, Cathedra differentiates itself through its hybrid operational model and focus on bitcoin-per-share maximization. The company's profit-sharing agreements and hosting services provide a stable revenue base, while its self-mining operations offer upside potential in bullish bitcoin markets. Additionally, its strategic merger with Kungsleden has significantly expanded its data center capacity and hosting capabilities, positioning it as a versatile player in the digital infrastructure sector.
Commitment to Sustainability
Cathedra is committed to optimizing energy efficiency across its operations. The company participates in demand-response programs, such as those offered by the Tennessee Valley Authority, to align its energy usage with grid stability requirements. These initiatives not only reduce operational costs but also contribute to a more sustainable energy footprint.
Future Outlook
Looking ahead, Cathedra aims to continue expanding its data center portfolio and hosting services while maintaining a focus on maximizing bitcoin-per-share holdings. The company is also preparing for a potential listing on a major U.S. stock exchange, which could enhance its visibility and accessibility to investors. By leveraging its diversified business model and strategic partnerships, Cathedra is well-positioned to navigate the evolving cryptocurrency landscape.
Cathedra Bitcoin, a diversified bitcoin mining company, has announced updates on its operations and the proposed merger with Kungsleden. Following the fourth Bitcoin halving on April 19, 2024, which reduced the new bitcoin issuance rate by 50%, Cathedra adjusted its mining fleet's power draw and hash rate to maximize cash flow. As a result, the company's fleetwide efficiency improved, reducing the breakeven hash price to under US$42/PH/s/day.
The proposed merger with Kungsleden, a developer of high-density compute infrastructure, is under review by the TSX Venture Exchange. The merger aims to provide Cathedra with a more stable and predictable revenue model. The shareholder meeting for the merger vote is expected in the third quarter, with trading in Cathedra's shares to resume upon deal closure.
Additionally, Kungsleden has activated the first 10 MW of hosting capacity at its 60-MW North Dakota data center. The remaining capacity is expected to be completed soon, with all hosting capacity contracted for an initial one-year term at an average rate of US$74.17 per MWh.
Cathedra Bitcoin announces a significant increase in Q1 2024 revenues, reporting a 104% rise to C$4.1 million from bitcoin mining operations compared to Q1 2023. Their total bitcoin holdings increased by 136% to C$4.1 million. Shareholders' equity also grew by 9% to C$10.0 million. On March 6, 2024, they entered a binding share exchange agreement with Kungsleden, aiming to expand their portfolio to 45-MW across multiple sites in the U.S. They also adjusted their mining strategies post-Bitcoin's fourth halving to maximize cash flow. Cathedra holds C$5.6 million in total liquidity. Bitcoin prices surged to an all-time high of US$73,082 in Q1 2024. The company remains optimistic about the future of bitcoin mining.
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