Cathedra Bitcoin Inc, a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, today announced the following operational and corporate updates.
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Update on Order for Bitmain Antminer S19J Pros
The Company recently installed 375 machines from its April and May batches of Bitmain Antminer S19J Pro machines (the “S19J Pros”) at third-party datacenters 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 the downturn in bitcoin mining conditions, the Company has temporarily paused all major capital expenditures in an effort to conserve cash until the market outlook improves. Consequently, the Company has elected to forgo making final payment on its June batch of S19J Pros (the “June S19J Pros”) and will instead take delivery of a reduced allocation of 522 machines (versus the 750, as originally contemplated). The Company may elect to accept delivery of reduced allocations for the July, August, and September S19J Pro batches as well, depending on market conditions at the 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.
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Update on Order for Bitmain Antminer S19 XPs
The Company recently completed the sale of 600 Bitmain Antminer S19 XP machines (the “S19 XPs”), which were scheduled to be delivered in six equal tranches from July through December 2022, for total proceeds of US$4,116,000. The net proceeds from the sale will be used to reduce the C$25,000,000 face value of the Company’s outstanding convertible debenture, further fortifying the Company’s balance sheet.
North Dakota Operations Update
At its North Dakota operation (the “North Dakota Mine”), the Company recently decommissioned 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 defective machines will be serviced and prepared for redeployed in the future. 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 the underperforming machines, the Company was able to consolidate performing machines into fewer containers and remove several generators, thereby reducing its ongoing operating expenses.
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