TORONTO–(BUSINESS PROPERTY)–(Block Height: 771,530) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Department” or “Company”), a Bitcoin company that develops and operates a world-class bitcoin mining infrastructure, is pleased to announce the following operations and corporate updates.
In addition to the 2021 futures order, the Company purchased 1,385 Bitmain Antminer S19J Pro machines, of which 920 are being installed at the Company’s Washington mine. The last 773 S19J Pros from the 2021 futures order are expected to be delivered in Q1 2023, as the Company has chosen to ship these machines by ocean freight rather than air freight to save cash. The company continues to evaluate potential deployment opportunities for the remaining 1,238 S19J Pros to further increase the bitcoin hash rate.
In recent weeks, the Company has optimized its operations in two areas by “downsizing” some of its existing machines – reducing energy consumption to increase machine efficiency, measured by energy consumed per unit of hash rate produced (joules or J/TH per terahash). The company implemented these optimizations at its Washington mine and one of its data centers in Tennessee. The company selected these two sites to maximize operating cash flow in current market conditions and expects to complete this optimization next week, after which it estimates the Washington site will generate 88 PH/s using 2.0 MW. 2.0 MW) and the Tennessee data center will generate 24 PH/s using 0.6 MW (up from 1.1 MW to 37 PH/s). After these optimizations, the Company expects to realize an average efficiency of 23 J/TH across these two areas, as opposed to 35 J/TH before optimization, representing an improvement of approximately 36%. After these changes, the Company estimates that the active bitcoin mining fleet will generate approximately 226 PH/s.
In December, the Company prepaid the outstanding principal balance on the final equipment loan in the amount of $270,690. The equipment loan was given at 15% interest and prepaid at nominal value. This equipment loan was secured by 180 MicroBT Whatsminer M30S machines, which were moved into storage to make room for optimizations at the Washington mine.
In addition, during December, the Company entered into a number of agreements with various parties to sell certain credits and coupons it received from third-party vendors for cash. Through these credit and coupon sales, the Company has raised $683,398 in cash as of December 6, 2022, and expects to receive an additional $937,605 in the coming weeks. As of December 31, 2022, the Company had C$3,227,000 (US$2,383,000) in cash and cash equivalents.
Finally, in line with ongoing efforts to conserve cash, the Company has made further reductions in corporate salaries and now saves approximately $285,000 per year in payroll costs. Additionally, the Company has reached an agreement with the board of directors to restructure the board’s compensation plan. Under the restructured plan, the Company will reduce the directors’ total compensation by $62,400 per year in exchange for granting a total of 1,560,000 restricted stock units to its directors under the Company’s long-term incentive plan for fiscal year 2023. The restricted stock units will vest on January 6, 2023, one year after the grant date.
“In such market conditions, one should think like a cockroach. After deploying these additional machines, improving some existing machines by speeding them up and further reducing our overhead, we will continue to generate positive EBITDA in the current market environment.”
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 that sound money and abundant energy are key components of 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 203 PH/s and span three states and five locations in the US. The company is focused on expanding its hashrate portfolio through site selection and a diversified approach to operations, leveraging multiple power sources in multiple jurisdictions.
For more information about Cathedra, visit cathedra.com or follow Company news on Twitter @CathedraBitcoin or @CathedraBitcoin on Telegram.
Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory body has approved or disapproved of the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain “forward-looking information” within the meaning of Canadian securities laws based on expectations, estimates and projections as of the date of this news release. Information about the Company’s future plans and objectives in this release is forward-looking information. Other forward-looking information includes, but is not limited to: senior management’s intentions and future actions, the Company’s intentions, plans and future activities, as well as the Company’s ability to successfully acquire digital currency; currently expected revenue growth; the ability to profitably liquidate current and future digital currency inventory; volatility of network difficulty and digital currency prices and, as a result, a material adverse effect on the Company’s operations; building and operating an expanded blockchain infrastructure as currently planned; and the regulatory environment of cryptocurrency in relevant jurisdictions.
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This forward-looking information is based on the reasonable assumptions and estimates of the Company’s management at the time it is made and involves known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance or achievements to decline. materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company has also assumed that no material events outside the normal course of business of the Company have occurred. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results to differ from those expected, estimated or intended. Because actual results and future events may differ materially from those anticipated in such statements, there can be no assurance that such statements will prove to be correct. Accordingly, 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.