Cathedra Bitcoin Announces Debt Settlement

(Block Height: 777,735) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, is pleased to announce that the board of directors of the Company has approved the settlement of a portion of the outstanding principal amount of Debentures (as defined below) into that number of common shares of the Company (the “Shares”) as is equal to the lesser of (i) not more than 9.9% of the total outstanding Shares at the time of such settlement, and (ii) the settlement of an aggregate principal amount of Debentures into Shares equal to C$2,500,000 (the “Debt Settlement”). The Shares will be issued at a deemed price of $0.135 per Share. The debt is payable to certain debenture holders (the “Debenture Holders”) in respect of 3.5% senior secured convertible debentures of the Company due November 11, 2024 (the “Maturity Date”) in the aggregate principal amount C$25,000,000 issued to the debenture holders on November 11, 2021 (the “Debentures”).

The Company and the Debenture Holders entered into a binding term sheet dated February 21, 2023, with respect to the Debt Settlement. The Debt Settlement is subject to completion of definitive documentation and is expected the close following the approval from TSX Venture Exchange (“TSXV”). The Company expects that the proposed Debt Settlement will assist the Company in preserving its cash for working capital.

The remaining principal amount of Debentures outstanding following the Debt Settlement will continue to bear interest at a rate of 3.5% per annum from the date of issue, payable quarterly in arrears on the last day of March, June, September and December of each year until the Maturity Date.

All securities to be issued pursuant to the Debt Settlement will be subject to a four month and one day hold period from the closing date of the Debt Settlement. The Debt Settlement is subject to the receipt of regulatory approvals, including the approval of the TSXV.

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 247 PH/s and span three 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.