Cathedra Bitcoin Announces First Quarter 2023 Financial Results

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TORONTO, May 30, 2023–(BUSINESS WIRE)–(Block Height: 792,140) Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), Announces Results of its operations for the first quarter and three months ended March 31, 2023 (“Q1 2023”).

First Quarter 2023 Financial Highlights

Raw bitcoin produced by mining operations rose 12% to 64.5 bitcoins from 57.8 bitcoins in the first quarter of 2022.

Bitcoin mining revenue decreased 35% to C$2.0 million from C$3.1 million in the first quarter of 2022, primarily due to the change in the average daily price bitcoin for the quarter was US$22,875, compared to US$53,481 in the first quarter of 2022. bitcoin mining operations increased by 20% quarter over quarter to reach C$2.0 million , compared to C$1.7 million in the fourth quarter of 2022.

The Company liquidated certain third-party vendor credits and coupons for cash proceeds of approximately US$1.8 million in Q4 2022 and Q1 2023.

The Company announced the settlement of C$2.5 million of the unpaid principal amount of its 3.5% senior secured convertible debentures into 18,518,518 common shares of the Company, which were issued at a deemed price of C$0.135 per share. Following the closing of the transaction on April 10, 2023, the convertible debentures have an outstanding principal balance of C$19.9 million, which is due upon maturity on November 11, 2024.

As of May 30, 2023, the Company held approximately C$3.8 million in cash and approximately C$664,600 worth of bitcoins (17.63 BTC) for total cash and bitcoin cash of approximately C$4.5 million. Canadian dollars.

First Quarter 2023 Operational Highlights

The company has rolled out an additional 920 Bitmain S19J Pros at its former Washington factory.

The company entered into a hosting agreement under which it deployed 490 Bitmain S19J Pro and 50 Bitmain S19 XP in a third-party data center in Kentucky. The hosting agreement has an initial term of 12 months and the Company will pay a flat rate of $0.07 per kilowatt hour plus 10% of the gross bitcoin revenue generated from the hosted machines.

The Company entered into 24-month lease and operating agreements for a 2.5 megawatt bitcoin mining facility in Washington State under which the Company pays $0.06 per kilowatt hour plus 10% of gross revenue in bitcoins produced by the Company’s machines in the facility. The Company has also received the right of first opportunity to purchase the facility and several adjacent facilities that total approximately 10 megawatts of bitcoin mining capacity.

The company has completed an optimization of its operations at two sites by “underclocking” some of its existing machines by reducing energy consumption to improve machine efficiency, as measured by energy consumed per unit of hash rate produced. This optimization has improved average machine efficiency across sites by approximately 36%, increasing the company’s operating cash flow margins.

As of May 30, 2023, the company’s active bitcoin mining hash rate totaled 343 PH/s across three states and seven locations in the United States. The company plans to deploy at least 35 additional PH/s at its new leased facility in Washington in the coming weeks.

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Management commentary

“During the first months of 2023, we continued to generate free cash flow and resumed building our bitcoin cash. fourth quarter of 2021 and have made meaningful progress toward completing these deployments,” CEO AJ Scalia noted. USD per bitcoin on a portfolio of hash rates totaling 343 PH/s.

“In addition to the remaining 35 PH/s that we plan to install soon in our new Washington facility, we continue to evaluate deployment opportunities for our 11 modular data centers and over 2,000 legacy idle machines. generation to further increase our hash rate portfolio. With our industry-leading underclocking capabilities, we believe we can improve the power efficiency of these machines to make them profitable even if the harsh conditions persistent bitcoin mining.”

About Bitcoin Chair

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) is a Bitcoin company that believes that healthy money and abundant energy are the keys to human flourishing. The company has diversified its bitcoin mining operations which produces 343 PH/s in three states and seven locations in the United States. The Company is focused on managing and expanding its hash rate portfolio through a diversified approach to site selection and operations, utilizing 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 phrases such as “expects “, or “does not expect”, “is expected”, “expects” or “does not anticipate”, “plans”, “budget”, “planned”, “expects”, “estimates”, “believes ” or “intends” or variations of these words and expressions or indicating that certain actions, events or results “could” or “might”, “would”, “might” or “would” be expected to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify -research 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.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20230530005603/en/

contacts

Please contact: Sean TyFinancial [email protected]

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