Cathedra Bitcoin Announces Leasing of 2.5-MW Bitcoin Mining Facility
February 02 2023 - 7:00AM
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.
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.
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Media and Investor Relations Inquiries
Sean Ty Chief Financial Officer ir@cathedra.com
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