Toronto, Ontario--(Newsfile Corp. - August 29, 2024) - (Block Height: 858,990) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) ("Cathedra," the "Company," or "we"), a developer and operator of high-density compute infrastructure across North America, today announces our second quarter ("Q2") financial results for 2024:
Q2 2024 Highlights
Revenue from bitcoin mining operations increased by 5% year-over-year to C$3.0 million, compared to C$2.9 million in Q2 2023.
In response to weakened mining conditions following the fourth halving of Bitcoin's issuance rate (the "Halving"), we resumed "underclocking" certain machines to maximize mining cash flow. Following these adjustments, our fleetwide active hash rate has reduced to approximately 355 PH/s. These adjustments improved fleet efficiency to approximately 26 joules per terahash ("J/TH") from 29 J/TH pre-Halving.
On March 6, 2024, we entered into a binding share exchange agreement providing for a business combination with Kungsleden Inc. ("Kungsleden"), a privately held developer and operator of bitcoin mining data centers. After amending the terms of the original agreement on June 18, 2024, and thereafter receiving the requisite approvals from Cathedra shareholders and the TSX Venture Exchange (the "TSX-V"), we completed the business combination on July 23, 2024, and our shares resumed trading on the TSX-V on August 6, 2024.
Subsequent to quarter end, we concluded a hosting arrangement with a third-party operator in Tennessee pursuant to the terms of the hosting agreement and consequently relocated approximately 1,129 Bitmain S19J Pro machines from that site to a data center we own and operate in Tennessee. The relocation of these machines was completed on August 28, 2024, and has reduced the effective cash operating cost for these machines by approximately 31%, from US$72.50 per megawatt hour to approximately US$50.00 per megawatt hour.
We hold approximately C$1.5 million of cash and C$3.4 million of bitcoin (41.1 bitcoin) for total liquidity of C$4.9 million as of August 29, 2024.
Management Commentary
"Despite underwhelming price performance from bitcoin, Q2 was a milestone quarter for Cathedra," remarked AJ Scalia, CEO of Cathedra. "We announced a strategic business combination with Kungsleden Inc., repositioning our company as a developer and operator of high-density compute infrastructure for bitcoin mining-and potentially other end markets, like artificial intelligence-rather than a pure-play bitcoin miner. By continuing our "underclocking" strategy and relocating machines to lower-cost data centers we own and operate via Kungsleden, we have weathered all-time-low bitcoin mining conditions since the fourth Bitcoin Halving in April. Now that the business combination is completed, we are eager to begin generating cash flow and exploring accretive growth together with the Kungsleden team."
About Cathedra Bitcoin
Cathedra Bitcoin Inc. develops and operates high-density compute infrastructure across North America. The Company hosts bitcoin mining clients across its portfolio of three data centers (30 megawatts total) in Tennessee and Kentucky. Additionally, Cathedra is a 25% partner in a joint venture that is developing a 60-megawatt data center in North Dakota which will also host bitcoin miners upon its expected completion in Q3 2024. Cathedra also operates a fleet of proprietary bitcoin mining machines at its own and third-party data centers, producing approximately 400 PH/s of hash rate. The Company is focused on expanding its portfolio of data center infrastructure for high-density compute applications including bitcoin mining and artificial intelligence. Cathedra is headquartered in Vancouver and its shares trade on the TSX Venture Exchange under the symbol CBIT.
For more information about Cathedra, visit cathedra.com or follow Company news on Twitter at @CathedraBitcoin or on Telegram at @CathedraBitcoin.
Media and Investor Relations Inquiries
Please contact:
AJ Scalia
Chief Executive Officer
ir@cathedra.com
Cautionary Statement
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.
Forward-Looking Statements
This news release contains certain "forward-looking information" and "forward-looking statements" 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. Forward-looking information contained in this news release includes but is not limited to information concerning: the potential for and merits of the Kungsleden acquisition; the benefits of the strategy to become a developer and operator of high-density compute infrastructure for bitcoin mining and/or other potential end markets; and other statements regarding future plans and objectives of the Company. 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. The Company has also assumed that no significant events occur outside of its normal course of business.
Additionally, these forward-looking statements may be affected by risks and uncertainties in the business of Cathedra and general market conditions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect Cathedra's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Cathedra believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: an inability successfully integrate the Kungsleden business on terms which are economic or at all; a failure to realize the expected benefits of the business plan to develop and operate high-density compute infrastructure for bitcoin mining and/or other potential end markets; the risks of an increase in the Company's electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the potential adverse impact on the Company's profitability; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; future capital needs and the ability to complete current and future financings, as well as capital market conditions in general; volatile securities markets impacting security pricing unrelated to operating performance; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation and the costs associated with compliance; unanticipated costs; changes in market conditions impacting the average revenue per MWh; and the risks and uncertainties associated with foreign markets. Additionally, the forward-looking statements contained herein may be affected by risks and uncertainties in the business of Cathedra and general market conditions. Please see the Company's management information circular dated June 18, 2024 which is available for view the Company's SEDAR+ profile on www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221559
SOURCE: Cathedra Bitcoin Inc.
