- TSX-V: CBITC$0.10
- OTCQB: CBTTF US$0.07
- CBIT Total Active Hash Rate: 382 PH/S
Cathedra Bitcoin Announces First Quarter 2022 Financial Results
TORONTO, May 30, 2022 (BUSINESS WIRE) (Block Height: 738,484) – 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, 2022 (“Q1 2022”).
First Quarter 2022 Highlights
- The Company reported revenue from its mining operations of approximately $3.11 million as compared to $0.65 million during the quarter ended March 31, 2021.
- Cathedra deployed its twelfth and final container at its North Dakota mine in partnership with Great American Mining (“GAM”), bringing total hash rate at the operation to 155 PH/s.
- The Company listed its common shares on the OTCQX Best Market under the ticker symbol “CBTTF” and began the process of pursuing a U.S. listing on the Nasdaq.
- The Company expanded its management team by three with the hires of Isaac Fithian (Chief Field Operations and Manufacturing Officer), Rete Browning (Chief Technology Officer), and Tom Masiero (Head of Business Development).
- Cathedra began manufacturing its proprietary mobile data centers (the “Bitcoin Mining Rovers” or “Rovers”), in Northern New Hampshire. The first Rover was recently completed and will be tested in the coming days.
- Cathedra ended the period with active and contracted hash rate of approximately 187 PH/s and 725 PH/s, respectively, across its two sites in Washington State and North Dakota.
Balance Sheet Restructuring
Bitcoin mining market conditions—and macroeconomic conditions more broadly—have worsened materially in 2022. In Q2 2022, the price of bitcoin declined to more than 60% off its all-time-high in 2021, and network hash rate continued to increase to record-highs. In preparation for a prolonged market downturn, the Company has recently taken measures to raise and conserve cash, reduce risk, and strengthen its balance sheet.
On May 20, 2022, the Company announced the closing of a non-brokered private placement offering with Kingsway Capital and Ten31 consisting of the sale of 17,916,667 units at a purchase price of $0.36 per unit, for gross proceeds of $6,450,000.
Throughout May 2022, the Company sold 235 bitcoin at an average price of $37,315 (US$29,152) for total cash proceeds of $8,768,922. With these sales, the Company insulates itself from additional declines in the price of bitcoin and maintains its liquidity position. Cathedra will continue pursuing its long-term goal of accumulating a large bitcoin treasury through its mining operations.
On May 27, 2022, the Company announced it had repaid all principal and interest due on two outstanding equipment loans for a total of $14,578,870, in accordance with the terms of the loans.
As of May 27, 2022, the Company held $2,559,236 in cash and $133,468 of bitcoin (3.69 BTC) for a total of $2,692,704 in cash and bitcoin.
“We have spent the last several weeks restructuring our balance sheet and operations to ensure Cathedra is well positioned to endure a prolonged economic downturn,” commented Chief Executive Officer, AJ Scalia. “Some of these decisions were difficult, but we are confident they are in the long-term best interest of shareholders and the Company.”
“We plan on building Cathedra for many decades to come. Our initial approach—using leverage to enter into machine futures orders—was clearly ill-timed. These adjustments in balance sheet strategy will allow us to accumulate more bitcoin in the long run, without being dependent on any third-party financing partner.”
“The long-term strategy and goal are unchanged: build a category-defining business at the intersection of Bitcoin and energy—and do so by pursuing vertical integration.”
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 owns 207 PH/s across various sites around the United States and expects to deploy an additional 518 PH/s in 2022. Upon the full deployment of its purchased machines, Cathedra’s hash rate is expected to total 725 PH/s. 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.
Media and Investor Relations Inquiries
Chief Financial Officer
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation 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.
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company, are forward-looking information. Other forward-looking information includes but is not limited to information concerning: 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; revenue increasing as currently anticipated; the ability to profitably liquidate current and future digital currency inventory; volatility of network difficulty and, digital currency prices and the resulting significant negative impact on the Company’s operations; the construction and operation of expanded blockchain infrastructure as currently planned; and the regulatory environment of cryptocurrency in applicable jurisdictions.
Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company has also assumed that no significant events occur outside of the Company’s normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. 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.