TORONTO / Apr 01, 2024 / Business Wire / (Block Height: 837,200) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQB: CBTTF) (“Cathedra” or the “Company”), a diversified bitcoin mining company, today announces its fourth quarter and full-year audited financial results for 2023:

Fiscal Year 2023 Financial Highlights

• Revenue from bitcoin mining operations increased by 24% to C$10.9 million, compared to C$8.8 million in 2022.
• Gross bitcoin produced by mining operations increased by 13% to 279.2 bitcoin, compared to 246.9 bitcoin in 2022.
• Total debt decreased by 75% to C$5.7 million, compared to C$22.4 million as of December 31, 2022, resulting in a C$5.5 million gain on the settlement of debt. Furthermore, the Company extended the maturity on the remaining C$5.7 million of outstanding debt by 12 months to November 2025.
• Total shareholders’ equity increased by 94% to C$9.3m from C$4.8m as of December 31, 2022.
• The Company held C$1.5 million of cash and C$4.3 million of bitcoin (44.8 bitcoin) for total liquidity of C$5.8 million as of March 28, 2024.

Fiscal Year 2023 Operational Highlights

• The Company completed the capital-efficient deployment of its new S19J Pro and S19 XP machines at leased and third-party data centers, increasing its total bitcoin mining hash rate by 99% from 203 PH/s to 403 PH/s as of December 31, 2023.
• The Company continued its leadership in “underclocking” machines to optimize its operations, improving machine efficiency and cash flow margins at multiple sites by up to 36%.
• The Company launched an aftermarket software product for bitcoin mining machines, CathedraOS, which allows users to achieve similar underclocking performance as Cathedra.
• True to its commitment to diversification of jurisdictions and energy sources, the Company launched an off-grid mining partnership with 360 Mining, under which Cathedra deployed one of its modular bitcoin mining data centers at 360 Mining’s off-grid site in Texas to produce an incremental 5 PH/s.
• The Company has prepared for the upcoming Bitcoin Halving, after which the rate of new bitcoin issuance will be reduced by 50% to 3.125 bitcoin per block, by structuring key hosting agreements to maintain flexibility in the amount of power the Company draws at each site. In the event mining economics deteriorate considerably after the Halving, the Company reserves the right to underclock its machines to reduce its power draw and improve its margins across the majority of its fleet.
• Subsequent to the end of fiscal year 2023, on March 6, 2024, the Company entered into a binding share exchange agreement with Kungsleden Inc., a privately held developer and operator of bitcoin mining data centers. The combined company is expected to own and operate a 45-MW portfolio of bitcoin mining hosting data centers across four sites in three U.S. states, in addition to Cathedra’s 403 PH/s of existing bitcoin mining hash rate. The transaction is expected to close in the second quarter of 2024, subject to certain conditions precedent and customary regulatory and shareholder approvals.

Management Commentary

“During 2023, we nearly doubled Cathedra’s deployed hash rate from 203 PH/s to 403 PH/s and ensured the Company’s survival through the bear market with our creative and innovative underclocking strategies,” remarked AJ Scalia, CEO of Cathedra. “Furthermore, the debt settlements we negotiated with creditors have reset our balance sheet and positioned us to capitalize on the recovery of the Bitcoin market. The proposed merger with Kungsleden will put us on a new growth trajectory and transform our business model from a pure-play miner that is fully exposed to bitcoin volatility to a developer and operator of data center infrastructure, with a current focus on Bitcoin and an eye toward other end-markets like artificial intelligence. We are working tirelessly to close the merger so that we can begin executing against this new vision alongside the Kungsleden team.”

About Cathedra Bitcoin

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQB: 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 403 PH/s across three states and five 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 Debt Settlement, the approval of the TSXV, 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.