News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.
TORONTO–(BUSINESS WIRE)– (Block Height: 744,592) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedral”), a Bitcoin company that develops and operates world-class Bitcoin mining infrastructure, today announced the following operational and corporate updates.
Update on ordering for Bitmain Antminer S19J Pros
The company recently installed 375 machines from its April and May batches of Bitmain Antminer S19J Pro machines (the “Advantages of the S19J”) in third-party data centers in Tennessee (the “Tennessee mine”) and Kentucky (the “Kentucky mine”), increasing the Company’s bitcoin mining hash rate by 38 PH/s. The remaining 372 machines from the May batch have been delayed in transit and are expected to be delivered to the Kentucky mine in the coming days. Upon installation, these remaining machines will provide an additional 37 PH/s to the company’s total hash rate.
In light of slowing bitcoin mining conditions, the company has temporarily suspended all major capital expenditures in an effort to conserve cash until the market outlook improves. As a result, the Company has elected to waive making the final payment on its June batch of S19J Pros (the “June S19J Benefits”) and will instead take delivery of a reduced allocation of 522 machines (compared to 750, as originally planned). The Company may also elect to accept delivery of reduced allocations for July, August and September S19J Pro batches, depending on market conditions at that time. The June S19J Pros are being prepared for shipment and are expected to arrive at the Tennessee mine in the coming weeks, where they will contribute an additional 52 PH/s to the company’s total hash rate.
Update on ordering Bitmain Antminer S19 XP
The company recently completed the sale of 600 Bitmain Antminer S19 XP machines (the “S19 XP”), which were to be delivered in six equal installments from July to December 2022, for total proceeds of US$4,116,000. The net proceeds of the sale will be used to reduce the nominal value of the Company’s outstanding convertible debenture by C$25,000,000, thereby further strengthening the Company’s balance sheet.
North Dakota Operations Update
At its North Dakota operation (the “North Dakota mine“), the company recently retired approximately 400 machines that have demonstrated a history of underperformance since they were purchased under previous management in 2021. The company intends to ship these machines to its manufacturing facility in New Hampshire, where any faulty machine will be repaired and prepared for redeployment in the future.The remaining hash rate at the North Dakota mine totals 115 PH/s across 10 bitcoin mining containers.
The Company continues to take steps to improve its operating margins at the North Dakota mine. By decommissioning underperforming machines, the Company has been able to consolidate performing machines into fewer containers and retire multiple generators, thereby reducing its ongoing operating expenses.
About Cathedra Bitcoin
Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) is a bitcoin company that develops and operates a world-class bitcoin mining infrastructure.
Cathedra believes that sound money and abundant energy are the fundamental ingredients of human progress and is committed to advancing both by working closely with the energy industry to secure the Bitcoin network. Today, Cathedra’s diversified bitcoin mining operations total 229 PH/s and span four states and five locations in the United States. The Company is focused on expanding its hash rate portfolio through a diversified approach to site selection and operations, utilizing multiple power sources in various jurisdictions.
Trading in the Company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority 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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that is based on expectations, estimates and projections as of the date of this press release. The information contained in this press release on the future plans and objectives of the Company is forward-looking information. Other forward-looking information includes, but is not limited to, information regarding: the planned deployment of additional miners, senior management’s intentions and future actions, the Company’s intentions, plans and future actions, as well as the Company’s ability to successfully mine digital currency; revenues are growing as currently expected; the ability to profitably liquidate current and future digital currency inventory; volatility of network difficulties and digital currency prices and the resulting material adverse impact on the Company’s operations; building and operating an extensive blockchain infrastructure as currently planned; and the cryptocurrency regulatory environment in applicable jurisdictions.
Any statement involving discussion of predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance (often, but not always, using phrases such as “expects “, or “does not expect”, “is expected”, “expects” or “does not anticipate”, “plans”, “budget”, “planned”, “expects”, “estimates”, “believes ” or “intends” or variations of these words and expressions or indicating that certain actions, events or results “might” or “could”, “would”, “might” or “would” be expected to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify -research information.
This forward-looking information is based on reasonable assumptions and estimates made by the Company’s management at the time it was made, and involves known and unknown risks, uncertainties and other factors that may cause results, actual performance or achievements of the Company are materially different from any future results, performance or achievements expressed or implied by such forward-looking information. These factors include, among others: the Company’s ability to achieve its corporate objectives or advance the progress of the Company; risks related to international operations; the Company’s inability to obtain permits, consents or authorizations necessary for its activities; an inability to predict and thwart the effects of COVID-19 on the Company’s business, including, but not limited to, the effects of COVID-19 on capital market conditions, restrictions on labor workforce and international travel and supply chains; general market and industry conditions; and risks set forth in the Company’s public filings on SEDAR. The Company has also assumed that no material event occurs outside of the normal course of business for the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially, other factors may 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 assumes no obligation to revise or update any forward-looking information other than as required by law.
Media and Investor Relations Inquiries
Source: Cathedra Bitcoin Inc.