TORONTO–(BUSINESS WIRE)–(Block Height: 771,530) – Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“chair” or the “Company”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, is pleased to announce the following corporate operations and updates.
The company has received an additional 1,385 Bitmain Antminer S19J Pro machines from its upcoming 2021 order, 920 of which are being installed at the company’s Washington mine. The final 773 S19J Pros from the 2021 future order are expected to be delivered in the first quarter of 2023, as the company has opted to ship these machines by ocean freight instead of air freight to save money. The company continues to evaluate potential deployment opportunities for the remaining 1,238 S19J Pros to further increase its bitcoin mining hash rate.
In recent weeks, the company has streamlined its operations at two sites by “underclocking” some of its existing machines – reducing power consumption to improve machine efficiency, as measured by energy consumed per unit of hash rate produced (joules per terahash, or J/º). The company performed these optimizations at its mine in Washington and at one of the data centers where it hosts machines in Tennessee. The company selected these two sites to maximize operating cash flow under current market conditions and expects to complete this optimization within the next week, after which it estimates the Washington site will produce 88 PH/sec using 2.0 MW (vs. 52 PH/s from 2.0 MW previously) and the Tennessee data center will produce 24 PH/s using 0.6 MW (vs. 37 PH/s from 1.1 MW previously). Following these optimizations, the Company expects to achieve an average efficiency at these two sites of 23 J/TH, as opposed to 35 J/TH before optimization, representing an improvement of approximately 36%. Following these changes, the Company estimates that its active bitcoin mining fleet will produce approximately 226 PH/s.
In December, the Company prepaid the full principal balance outstanding on its last equipment loan in the total amount of US$270,690. The equipment loan carried 15% interest and was prepaid at par. This equipment loan was secured by 180 MicroBT Whatsminer M30S machines, which were moved into storage to make room for upgrades at the Washington mine.
Additionally, during the month of December, the Company entered into a series of agreements with various parties to sell certain credits and coupons it received from third-party suppliers in exchange for cash. With these credit and coupon sales, the Company has raised $683,398 in cash since December 6, 2022 and expects to receive an additional $937,605 in the coming weeks. As of December 31, 2022, the Company held C$3,227,000 (US$2,383,000) in cash and cash equivalents.
Finally, in line with its continued efforts to conserve cash, the Company made further reductions in corporate salaries, now saving approximately $285,000 per year in payroll expenses. Additionally, the Company reached an agreement with its board of directors to restructure the board’s compensation plan. Pursuant to the restructured plan, the Company will reduce its directors’ aggregate fees by $62,400 per year and, in return, will award its directors a total of 1,560,000 units of restricted stock under the Company’s long-term incentive plan. Company for fiscal year 2023. Restricted stock units will be entitled one year after the grant date, which is January 6, 2023.
Management Comment
“In market conditions like these, you have to think like a cockroach. After deploying these additional machines, improving the efficiency of some existing machines through underclocking and further reducing our overhead, we will continue to generate positive EBITDA in current market conditions.”
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 that sound money and abundant energy are the fundamental ingredients for human progress and is committed to moving forward by working closely with the energy industry to protect the Bitcoin network. Today, Cathedra’s diversified bitcoin mining operations total 203 PH/s and span three states and five locations across the United States. The company is focused on expanding its hash rate portfolio through a diversified approach to site selection and operations, utilizing multiple energy sources in multiple jurisdictions.
For more information about Cathedra, visit cathedra.com or follow company news on Twitter at @CathdraBitcoin or on Telegram at @CathedraBitcoin.
warning statement
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 regulatory services provider (as that term is defined in the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this release.
Forecast Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws which is based on expectations, estimates and projections as of the date of this press release. The information contained in this release about the Company’s future plans and objectives is forward-looking information. Other forward-looking information includes, but is not limited to: the future intentions and actions of senior management, the company’s future intentions, plans and actions, 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 stocks of digital currency; network difficulty volatility, 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 cryptocurrency regulatory environment in applicable jurisdictions.
Any statements involving discussions regarding forecasts, 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”, “budgets”, “schedules”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “may” or “will” be considered to have occurred or will be achieved) are not statements of historical fact and may be forward-looking information and are intended for identifying-looking 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 could cause the Company’s actual results, performance or achievements to be materially different. of 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 the normal course of the Company’s business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. There is no guarantee that such statements will be accurate, as actual results and future events could differ materially from those anticipated in such statements. Consequently, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to review or update any forward-looking information, except as required by law.
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