Cathedra Bitcoin Announces Fourth Quarter and Full-Year 2022 Financial Results

(Block Height: 787,600) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, today announces its fourth quarter and full-year audited financial results for 2022:

Fiscal Year 2022 Financial Highlights

• Revenue from bitcoin mining operations increased by 12% to C$8.7 million, compared to C$7.8 million in 2021.
• Gross bitcoin produced by mining operations increased by 104% to 244.7 bitcoin, compared to 120.2 bitcoin in 2021.
• The Company generated cash from operating activities of C$2.0 million, as compared to (C$19.2) million in 2021.
• The Company generated diluted earnings per share of (C$0.39), compared to C$0.01 in 2021, owing largely to depreciation expense of C$7.7 million and an accounting write-down of C$27.3 million on the value of bitcoin mining machines.
• In anticipation of a prolonged bear market in bitcoin mining, the Company proactively restructured its balance sheet and operations:
  • Liquidated approximately 235 bitcoin in Q2 2022 at an average price of US$29,152, approximately 47% above bitcoin’s low price on the year.
  • Issued C$9.3 million of equity capital in Q2 2022 to shore up the Company’s balance sheet.
  • Resold 400 Bitmain Antminer S19 XP machines in Q2 2022 at a price of $49/TH, using proceeds to repay principal on the Company’s outstanding convertible debenture.
  • Repaid approximately C$20.6 million of debt since Q1 2022 through a combination of cash prepayments and settlements for shares.
  • Liquidated certain credits and coupons from third-party suppliers for approximately US$1.8 million in cash proceeds in Q4 2022 and Q1 2023.
  • Lowered corporate overhead and conserved cash by reducing headcount, cutting all remaining employees’ salaries, and restructuring board compensation.
• The Company held C$3,341,000 of cash and C$635,000 of bitcoin (15.85 BTC) for total liquidity of C$3,976,000 as of April 28, 2023.

Fiscal Year 2022 Operational Highlights

• The Company increased net deployed bitcoin mining hash rate by 15% from 177 PH/s to 203 PH/s as of December 31, 2022.
• The Company upgraded its mining fleet to consist primarily of Bitmain Antminer S19J Pro and S19 XP machines, improving weighted average machine efficiency by approximately 43%, from 49 J/TH as of December 31, 2021, to 28 J/TH as of December 31, 2022.
• The Company expanded its bitcoin mining footprint to three states and five data center locations, reducing idiosyncratic climate, regulatory, and operating risks through diversification.
• The Company designed and manufactured proprietary modular bitcoin mining data centers (“Rovers”) in-house, which the Company intends to deploy using an off-grid energy source in the near future.
• The Company listed its shares on the OTCQX Best Market under the ticker symbol “CBTTF,” improving access for U.S. investors.
• Management wound up the Company’s legacy partnership with Great American Mining (“GAM”), which became unprofitable due to challenged bitcoin mining economics, impaired uptime, and increased power generation costs.
• The Company became one of the first public bitcoin miners to optimize its operations by “underclocking” machines, improving machine efficiency (and thereby operating cash flow margins) at two of its sites by approximately 36%.

Management Commentary