Cathedra Bitcoin Announces First Quarter 2022 Financial Results

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), announces the results of its operations for the first quarter and three months ended March 31, 2022 (“Q1 2022”).

First Quarter 2022 Highlights

• The Company reported revenue from its mining operations of approximately $3.11 million as compared to $0.65 million during the quarter ended March 31, 2021.
• Cathedra deployed its twelfth and final container at its North Dakota mine in partnership with Great American Mining (“GAM”), bringing total hash rate at the operation to 155 PH/s.
• The Company listed its common shares on the OTCQX Best Market under the ticker symbol “CBTTF” and began the process of pursuing a U.S. listing on the Nasdaq.
• The Company expanded its management team by three with the hires of Isaac Fithian (Chief Field Operations and Manufacturing Officer), Rete Browning (Chief Technology Officer), and Tom Masiero (Head of Business Development).
• Cathedra began manufacturing its proprietary mobile data centers (the “Bitcoin Mining Rovers” or “Rovers”), in Northern New Hampshire. The first Rover was recently completed and will be tested in the coming days.
• Cathedra ended the period with active and contracted hash rate of approximately 187 PH/s and 725 PH/s, respectively, across its two sites in Washington State and North Dakota.

Balance Sheet Restructuring

Bitcoin mining market conditions—and macroeconomic conditions more broadly—have worsened materially in 2022. In Q2 2022, the price of bitcoin declined to more than 60% off its all-time-high in 2021, and network hash rate continued to increase to record-highs. In preparation for a prolonged market downturn, the Company has recently taken measures to raise and conserve cash, reduce risk, and strengthen its balance sheet.

On May 20, 2022, the Company announced the closing of a non-brokered private placement offering with Kingsway Capital and Ten31 consisting of the sale of 17,916,667 units at a purchase price of $0.36 per unit, for gross proceeds of $6,450,000.

Throughout May 2022, the Company sold 235 bitcoin at an average price of $37,315 (US$29,152) for total cash proceeds of $8,768,922. With these sales, the Company insulates itself from additional declines in the price of bitcoin and maintains its liquidity position. Cathedra will continue pursuing its long-term goal of accumulating a large bitcoin treasury through its mining operations.