Cathedra Bitcoin Announces First Quarter 2023 Financial Results

(Block Height: 792,140) – 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, 2023 (“Q1 2023”).

First Quarter 2023 Financial Highlights

• Gross bitcoin produced by mining operations increased by 12% to 64.5 bitcoin, compared to 57.8 bitcoin in Q1 2022.
• Revenue from bitcoin mining operations decreased by 35% to C$2.0 million, compared to C$3.1 million in Q1 2022, mainly from the change in the daily average bitcoin price for the quarter of US$22,875, compared to US$53,481 in Q1 2022. Revenue from bitcoin mining operations increased by 20% quarter-over-quarter to C$2.0 million, compared to C$1.7 million in Q4 2022.
• The Company liquidated certain credits and coupons from third-party suppliers for approximately US$1.8 million in cash proceeds in Q4 2022 and Q1 2023.
• The Company announced the settlement of C$2.5 million of the outstanding principal amount of its 3.5% senior secured convertible debentures into 18,518,518 common shares of the Company, which were issued at a deemed price of C$0.135 per share. After the closing of the transaction on April 10, 2023, the convertible debentures have an outstanding principal balance of C$19.9 million, which is due upon maturity on November 11, 2024.
• As of May 30, 2023, the Company held approximately C$3.8 million of cash and approximately C$664,600 of bitcoin (17.63 BTC) for total cash and bitcoin liquidity of approximately C$4.5 million.

First Quarter 2023 Operational Highlights

• The Company deployed an additional 920 Bitmain S19J Pros at its legacy Washington facility.
• The Company entered into a hosting agreement under which it has deployed 490 Bitmain S19J Pros and 50 Bitmain S19 XPs at a third-party data center in Kentucky. The hosting agreement has an initial term of 12 months, and the Company will pay a fixed rate of US$0.07 per kilowatt hour plus 10% of gross bitcoin revenue produced by the hosted machines.
• The Company entered into 24-month lease and operating agreements for a 2.5-megawatt bitcoin mining facility in Washington State under which the Company pays US$0.06 per kilowatt hour plus 10% of gross bitcoin revenue produced by the Company’s machines at the facility. The Company also received the right of first opportunity to purchase the facility and several adjacent facilities which together total approximately 10 megawatts of bitcoin mining capacity.
• The Company completed an optimization of its operations across two sites by “underclocking” certain of its existing machines—reducing power draw to improve machine efficiency, as measured by energy consumed per unit of hash rate produced. This optimization improved average machine efficiency at the sites by approximately 36%, increasing the Company’s operating cash flow margins.
• As of May 30, 2023, the Company’s active bitcoin mining hash rate totaled 343 PH/s across three states and seven locations in the United States. The Company expects to deploy at least an additional 35 PH/s at its new leased facility in Washington in the coming weeks.

Management Commentary