Cathedra Bitcoin provides enterprise operations and updates

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TORONTO–(BUSINESS WIRE)–(Block Height: 771,530) Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (Cathedra or the Company), a Bitcoin company that develops and operates a world-class bitcoin mining, is pleased to announce the following operations and company updates.

The company received an additional 1,385 Bitmain Antminer S19J Pro machines from its 2021 forward order, with 920 being installed at the Companys mine in Washington. The final 773 S19J Pros of the 2021 forward order are expected to be delivered in the first quarter of 2023, as the company opted to ship these machines by ocean freight rather than air freight to save money. The company continues to evaluate potential deployment opportunities for the remaining 1,238 S19J Pros to further increase its bitcoin mining hash rate.

Over the past few weeks, the company has optimized its operations at two sites by underclocking some of its existing machines, reducing energy consumption to improve machine efficiency, measured by energy consumed per unit of hash rate produced (joules per terahash, or J/TH). The company performed these optimizations at its Washington mine and at one of the data centers where it hosts machines in Tennessee. The Company selected these two sites to maximize operating cash flow under current market conditions and expects to complete this optimization next week, after which it estimates that the Washington site will produce 88 PH/s using 2 .0 MW (compared to 52 PH/s of 2.0 MW previously) and the Tennessee data center will produce 24 PH/s using 0.6 MW (compared to 37 PH/s of 1.1 MW previously). Following these optimizations, the Company expects to achieve an average efficiency on these two sites of 23 J/TH, compared to 35 J/TH before the optimization, ie an improvement of approximately 36%. After these changes, the company estimates that its active bitcoin mining fleet will produce around 226 PH/s.

In December, the Company prepaid the entire outstanding principal balance of its last equipment loan for a total of US$270,690. The equipment loan bore interest at 15% and was prepaid at par. This equipment loan was secured by 180 MicroBT Whatsminer M30S machines, which were moved to make room for the Washington mine optimizations.

Additionally, during the month of December, the Company entered into a series of agreements with various parties to sell certain credits and coupons it had received from third-party sellers for cash. Through these credit and coupon sales, the Company has raised US$683,398 in cash proceeds since December 6, 2022 and expects to receive an additional US$937,605 in the coming weeks. As of December 31, 2022, the Company held CA$3,227,000 (US$2,383,000) in cash and cash equivalents.

Finally, in line with its continued efforts to conserve cash, the Company has implemented further corporate payroll reductions, now saving approximately US$285,000 per year in payroll expenses. In addition, the Company entered into an agreement with its Board of Directors to restructure the board compensation plan. Under the restructured plan, the Company will reduce its total cash attendance fees by US$62,400 per year and in return grant its directors a total of 1,560,000 restricted stock units under the long-term incentive plan for fiscal 2023. The restricted share units will vest one year after the grant date, i.e. January 6, 2023.

Management commentary

In market conditions like these, you have to think like a cockroach. After deploying these additional machines, improving the efficiency of some existing machines through underclocking, and further reducing our overhead, we will continue to generate positive EBITDA under current market conditions.

About Bitcoin Chair

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

Cathedra believes that sound money and abundant energy are fundamental ingredients for human progress and is committed to advancing both by working closely with the energy industry to secure the Bitcoin network. Today, Cathedras has diversified bitcoin mining operations totaling 203 PH/s and spanning three states and five locations in the United States. The Company is focused on expanding its hash rate portfolio through a diversified approach to site selection and operations, using multiple power sources in various jurisdictions.

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

Caution

Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved of 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 press release contains certain forward-looking information within the meaning of applicable Canadian securities laws that is based on expectations, estimates and projections as of the date of this press release. The information contained in this press release on the future plans and objectives of the Company is forward-looking information. Other forward-looking information includes, but is not limited to, information regarding: senior management’s future intentions and actions, the Company’s intentions, plans and future actions, and the Company’s ability to operate successfully digital currency; revenues are growing as currently expected; the ability to profitably liquidate current and future digital currency inventory; volatility in network difficulties and digital currency prices and the resulting material adverse impact on the Company’s operations; building and operating an extensive blockchain infrastructure as currently planned; and the cryptocurrency regulatory environment in applicable jurisdictions.

Any statement involving discussion of predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance (often, but not always using expressions such as expects, or does not expect, is expected, anticipates or does not anticipate, plans, budget, schedules, forecasts, estimates, beliefs or intentions or variations of any such words and phrases or indicating that certain actions, events or results may or may , could, could or will be expected 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 made by the Company’s management at the time it was made, and involves known and unknown risks, uncertainties and other factors that may cause results, actual performance or achievements of the Company are materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company has also assumed that no material events occur outside of the normal course of business for the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially, other factors may 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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