TORONTO / May 30, 2023 / Business Wire / (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

“During the first few months of 2023, we have continued to generate free cash flow and have begun building our bitcoin treasury again. In Q1, we announced plans to deploy the remaining new machines from our Q4 2021 futures orders and made significant progress toward completing those deployments,” remarked CEO AJ Scalia. “At time of publication, we are generating approximately 28.16 gross bitcoin per month at an average cash cost of US$13,983 per bitcoin across a hash rate portfolio totaling 343 PH/s.

“In addition to the remaining 35 PH/s we expect to install at our new Washington facility imminently, we continue to evaluate opportunities to deploy our 11 modular data centers and over 2,000 idle older-generation machines to further increase our portfolio of hash rate. With our industry-leading underclocking capabilities, we believe we can improve the power efficiency of these machines to render them profitable even as challenging bitcoin mining conditions persist.”

About Cathedra Bitcoin

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) is a Bitcoin company that believes sound money and abundant energy are the keys to human flourishing. The Company has diversified bitcoin mining operations which produce 343 PH/s across three states and seven locations in the United States. The Company is focused on managing and expanding its portfolio of hash rate through a diversified approach to site selection and operations, utilizing multiple energy sources across various jurisdictions.

For more information about Cathedra, visit cathedra.com or follow Company news on Twitter at @CathedraBitcoin or on Telegram at @CathedraBitcoin.

Cautionary Statement

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.

Forward-Looking Statements

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.