TORONTO–(BUSINESS WIRE)–(Block Height: 751,282) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), announces the results of its operations for the second quarter and six months ended June 30, 2022 (“Q2 2022”).
Second Quarter 2022 Highlights
- The Company reported revenue from its mining operations of approximately C$2.53 million as compared to C$0.62 million during the quarter ended June 30, 2021.
In response to a weakening market outlook in the first half of 2022, the Company took measures to restructure its balance sheet and improve its liquidity position, including:
- closing two non-brokered private placement offerings for gross proceeds of C$9,330,000;
- selling substantially all of its bitcoin holdings at an average price of C$37,315 (US$29,152) for total cash proceeds of C$8,768,922. The Company continues to liquidate substantially all mined bitcoin on a daily basis;
- repaying all principal and interest due on two outstanding equipment loans for a total of US$14,578,870, in accordance with the terms of the loans;
- selling 600 Bitmain Antminer S19 XP machines for total proceeds of approximately US$4,116,000, which were used to reduce the face value of the Company’s outstanding convertible debenture; and
- temporarily pausing all significant capital expenditures in an effort to conserve cash.
- The Company announced it had entered into a hosting agreement under which the Company will deploy approximately 1,501 Bitmain Antminer S19j Pro machines at various datacenters in Kentucky and Tennessee (together, the “Kentucky and Tennessee Mines”) that are owned and managed by a third-party operator. Under the agreement, which lasts for an initial term of 12 months, the Company will pay a fixed rate of five and one-half cents (US$0.055) per kilowatt hour, plus ten percent (10%) of gross bitcoin revenue produced by the hosted machines.
- The Company took delivery of its first two shipments of Bitmain Antminer S19j Pro mining machines, deploying approximately 934 across its site in Washington and the Kentucky and Tennessee Mines and adding approximately 93 PH/s to the Company’s total hash rate.
- The Company announced it had reached an agreement with Great American Mining to wind-up the parties’ business relationship in Q3 2022. To date, the Company has decommissioned seven of its 12 containers at its North Dakota operation and expects to retire the remaining five containers before the end of Q3. The Company is actively evaluating opportunities to deploy the decommissioned machines at sites with favorable economics.
- The Company continued manufacturing its proprietary modular datacenters (the “Rovers”), beginning an extensive testing process for Rover 1. At time of publication, the Company has another six Rovers in various stages of the production process, largely using materials ordered earlier in 2022.
- Cathedra ended the period with active hash rate of approximately 231 PH/s across five sites in Kentucky, North Dakota, Tennessee, and Washington. At time of publication, the Company’s active hash rate totals approximately 217 PH/s—a slight decline versus Q2 levels due to the decommissioning of additional machines from the Company’s North Dakota operation.
“In the second quarter, market volatility and a continued deterioration in bitcoin mining conditions forced us to adjust our near-term expansion plans. Fortunately, in May we took measures to improve the Company’s liquidity position, issuing equity, selling assets, and retiring debt to bolster our balance sheet in preparation for a prolonged economic downturn. In the near-term, we will continue to prioritize liquidity and capital efficiency as we deploy our new machines.
“We remain as bullish as ever on the long-term prospects of Bitcoin. The mission is unchanged: build Cathedra into a category-defining business at the intersection of bitcoin mining and energy production. Amid collapsing supply chains and increasingly unreliable power infrastructure, our conviction in our long-term strategy of pursuing vertical integration and off-grid energy sources has only grown. We thank our shareholders for their continued support in these turbulent times.”
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 217 PH/s and span four 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.
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.
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.