TORONTO–(BUSINESS WIRE)–(Block height: 765,082) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or “Company”), announces the results of operations for the third quarter and nine months ended September 30, 2022 (“Q3 2022“).
Highlights for the third quarter of 2022
-
The company reported bitcoin mining revenue of approximately C$1.49 million, compared to CAD 1.55 million in the quarter ended September 30, 2021, amid a roughly 50% decline in the average price of bitcoin over the same periods.
-
The company installed 522 machines from the June batch of Bitmain Antminer S19J Pro machines at a third-party data center in Kentucky, increasing the company’s bitcoin mining hash rate by 52 PH/s. Under the terms of the hosting agreement executed in May 2022, the Company pays a flat rate of five and one-half cents ($0.055) per kilowatt-hour, plus ten percent (10%) of gross bitcoin revenue produced by the hosted machines, in during the 12-month period.
-
The company entered into a hosting agreement where it deployed the remaining 372 machines from the May batch of Bitmain Antminer S19J Pro machines at a third-party data center in Tennessee. Under the terms of the hosting agreement, which lasts for an initial period of 12 months, the company will pay a flat rate of seven cents (US$0.07) per kilowatt hour, plus five percent (5%) of gross bitcoin revenue produced by hosted machines. The installation of these machines was completed on October 10, 2022, increasing the company’s diversified bitcoin mining hash rate by 37 PH/s.
-
In line with its efforts to save money until bitcoin mining conditions improve, the company chose to forgo making final payment on its July batch of S19J Pros (“July S19J Pros“) and instead take delivery of a reduced allocation of 635 machines (against the originally thought 750). The company will take delivery of its full allocation of 750 machines per month in August and September (the “August S19J Pros” and “September S19J Pros“respectively). July, August and September S19J Pros have been shipped via sea freight (rather than air freight) to further reduce cash outlays, and the company continues to evaluate potential distribution opportunities for these machines that will prove profitable under current mining conditions.
-
The company ended its partnership with Great American Mining (“GAM”) as planned, retires the last of its machines and containers in September. The company delivered four of its containers from the North Dakota area to GAM in exchange for waived power and generator costs upon entering into the partnership. The company has moved the remaining eight containers and all the machines into storage until they can be relocated to a profitable location.
-
The company extended the moratorium on production-related capital expenditures to save money until market conditions improve. At the time of publication, the company has completed production of its first three proprietary bitcoin mining data centers (“Rovers”), with a further three Rovers in various stages of completion. The company intends to deploy these Rovers in locations with favorable economic characteristics as soon as market conditions permit.
-
Cathedra ended the period with an active hash rate of approximately 166 PH/s across four locations in Kentucky, Tennessee and Washington. At the time of publication, the company’s active hash rate is approx. 203 PH/s at five sites in the same states.
Management commentary
“Unfortunately, bitcoin mining conditions have continued to deteriorate as the year has gone on. Fortunately, we have remained one step ahead of the market at all times, strengthening the company’s liquidity position and balance sheet during the spring by issuing equity, selling assets and liquidating debt in preparation for a long-term economic downturn At the time of writing we are in a position of relative strength compared to many of our industry peers, with several years of runway even under current conditions.
“Our long-term bullish thesis on Bitcoin has not changed. Preservation of shareholder capital remains our highest priority, and we are grateful for your continued support.”
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 basic ingredients of human progress and is committed to moving forward by working closely with the energy sector to secure the Bitcoin network. Today, Cathedra’s diversified bitcoin mining totals 203 PH/s and spans three states and five locations in the United States. The company is focused on expanding its portfolio of hash rates through a diversified approach to site selection and operations, using multiple energy sources across different jurisdictions.
For more information about Cathedra, visit cathedra.com or follow the company’s news on Twitter at @CathedraBitcoin or on Telegram at @CathedraBitcoin.
Warning
Trading in the company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or rejected the information here. Neither the TSX Venture Exchange nor its regulatory services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
This press release contains certain “forward-looking information” under applicable Canadian securities laws that are based on expectations, estimates and projections as of the date of this press release. The information in this release about future plans and targets for the company is forward-looking information. Other forward-looking information includes, but is not limited to, information about: the intentions and future actions of senior management, the intentions, plans and future actions of the Company, as well as the Company’s ability to successfully mine digital currency; income increases as expected; the ability to profitably liquidate current and future digital currency holdings; volatility in network difficulties and digital currency prices and the resulting significant adverse impact on the Company’s business; construction and operation of extended blockchain infrastructure as currently planned; and the cryptocurrency regulatory environment in applicable jurisdictions.
Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, estimates, targets, assumptions, future events or performance (often but not always by the use of phrases such as “expects”, or “does not expect”, “expects” , “anticipates” or “does not anticipate”, “plans”, “budget”, “planned”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and expressions or states that certain actions , events or results “may” or “could”, “would”, “can” or “will” be considered to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify the future -See information.
This forward-looking information is based on reasonable assumptions and estimates made by the management of the company at the time it was made, and involves known and unknown risks, uncertainties and other factors that could cause the company’s actual results, performance or achievements to be materially different from future results , performance or achievements expressed or implied by such forward-looking information. The company has also assumed that no significant events occur outside the company’s normal operations. Although the company has tried to identify important factors that can cause actual results to deviate significantly, there may be other factors that mean that the results are not as expected, estimated or intended. No guarantee can be given that such statements will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements. Accordingly, readers should not rely on forward-looking information. The company undertakes no obligation to revise or update forward-looking information other than as required by law.
