TORONTO, February 02, 2023--(BUSINESS WIRE)--(Block Height: 774,581) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) ("Cathedra" or the "Company"), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, is pleased to announce that the Company entered into an agreement to lease a 2.5-megawatt bitcoin mining facility in Washington State on January 29, 2023. Under the lease agreement, which lasts for an initial term of 24 months, the Company will make lease payments of US$108,000 per month, a rate equivalent to US$0.06 per kilowatt hour, including all electricity costs.
Under the lease agreement, the Company also received a right of first opportunity ("ROFO") to purchase the 2.5-megawatt facility and several adjacent facilities on the same premises, which together total 10 megawatts of bitcoin mining capacity. The ROFO expires upon termination or expiration of the lease agreement.
Additionally, on January 29, 2023, the Company entered into an operating agreement with a third-party service provider under which the service provider will manage the Company’s bitcoin mining machines at the leased facility in exchange for 10% of the gross revenue produced by the Company’s machines at the leased facility. The operating agreement lasts for an initial term of 24 months.
The Company intends to deploy its final batch of 773 Bitmain Antminer S19J Pro machines at the leased facility upon their arrival, expected by March 2023. The lease and operating agreements commence on the later of (a) that date on which the Company’s machines are delivered to the leased facility or (b) February 14, 2023.
The Company intends to further optimize its fleet of bitcoin mining machines across its two leased facilities in Washington State; such optimizations may include moving machines between the two facilities to better utilize available power capacity and "underclocking" certain machines (i.e., reducing power draw) to improve the Company’s operating margins.
Upon deployment of these 773 S19J Pro machines, the Company expects its diversified bitcoin mining operations to realize active hash rate of at least 322 PH/s, an approximately 30% increase from its current active hash rate of 247 PH/s. The Company will announce the effects on hash rate of any further optimizations upon their completion.
The Company continues to evaluate opportunities to deploy its remaining 490 S19J Pro (100 TH/s) and 50 S19 XP (140 TH/s) machines in a capital-efficient manner.
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’s diversified bitcoin mining operations total 247 PH/s and span three states and five locations in the United States. 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.
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.
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