Cathedra Bitcoin Provides Operations Update

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TORONTO–(BUSINESS WIRE)–(Block Height: 773,139) 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 updates.

Update on Bitmain Antminer 600 XP Sale

On November 22, 2021, the company announced that it had reached an agreement with Bitmain for the purchase of 600 new Antminer S19 XP bitcoin mining machines to be delivered in monthly installments of 100 machines from July to December 2022.

On July 11, 2022, the company announced that it had reached an agreement to sell the 600 XP S19s for total proceeds of $4,116,000, with 50% of the total purchase price ($2,058,000) being paid in cash. upon signature and the balance to be paid in six equal installments upon delivery of each batch of machines.

As of December 31, 2022, the Company had delivered 400 of the 600 machines and had received additional proceeds of US$686,000 from the purchaser, which the Company will use to further reduce the principal of its outstanding convertible debenture after deducting costs related to the transaction. .

On January 3, 2023, the buyer refused to accept delivery and make payment on the last 200 machines, citing shipping delays. Accordingly, on January 10, 2023, the Company and the purchaser entered into a Termination Agreement which mutually released each party from all remaining obligations under the original purchase agreement. The company will keep the remaining 200 S19 XPs, which produce a total of 28 PH/s of bitcoin mining hash rate at a peak energy efficiency of 21.5 joules per terahash.

Operations Update

On January 20, 2023, the company deployed 150 of the remaining 200 S19 XP machines to a third-party data center in Tennessee. Under the terms of the hosting agreement, which is for an initial term of 12 months, the Company will pay a fixed rate of seven cents (USD 0.07) per kilowatt hour, plus ten percent (10%) of gross revenue in bitcoins produced by the hosted XP S19. After installing the 150 S19 XPs, the company’s diversified bitcoin mining operations are now producing around 247 PH/s.

The company continues to evaluate potential opportunities to deploy the remaining 50 XP S19s and its remaining 1,238 S19J Pro machines.

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 247 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 assumes no obligation to revise or update any forward-looking information other than as required by law.

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