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 provide an update on its bitcoin mining operations.
The Company recently installed 323 machines from its first order of Bitmain Antminer S19J Pros (the “S19J Pros”) at its site in Washington (the “Washington Mine”), where they replaced older-generation hardware. As of May 30, 2022, the Washington Mine produces 52 PH/s.
Another 195 S19J Pros were sent to the Company’s New Hampshire manufacturing facility, where they are being used to test the first of the Company’s completed Rovers—mobile, modular data centers designed and manufactured in-house. These tests will allow the Company to optimize the Rover design in order to create a best-in-class modular data center solution.
Cathedra recently entered into a hosting agreement (the “Hosting Agreement”) under which the Company will deploy another 1,537 S19J Pros (the “Hosted Machines”) at two data centers in Tennessee (the “Tennessee Mine”) and Kentucky (the “Kentucky Mine”; together, the “Tennessee and Kentucky Mines”) that are owned and managed by a third-party operator. Under the agreement, which lasts for an initial term of 12 months, the Company will pay a fixed rate of five and one-half cents (US$0.055) per kilowatt hour, plus ten percent (10%) of gross bitcoin revenue produced by the Hosted Machines. The Hosted Machines are expected to be installed at the Tennessee and Kentucky Mines in batches at the end of May (232 machines), in mid-June (747 machines), and in mid-July (558 machines). Upon the installation of all 1,537 machines, the Company’s Hosted Machines at the Tennessee and Kentucky Mines are expected to produce 154 PH/s.
With the execution of the Hosting Agreement, the Company expands its operating footprint to Tennessee and Kentucky. True to its diversified approach, upon deployment of the Hosted Machines Cathedra will own 362 PH/s of hash rate across four states using a combination of on- and off-grid energy sources, with no more than 43% of the Company’s hash rate portfolio concentrated at any single location.
The arrangement also allows the Company to adopt an incremental approach to its long-term goal of vertical integration. Cathedra will continue to refine and scale its manufacturing and field operations with the benefit of stable hash rate supervised by a third-party operator, with the intention to deploy future machine deliveries in its Rovers.
President and Chief Operating Officer Drew Armstrong remarked, “We are tremendously excited about the potential of our Rovers. By electing to host these S19J Pros at third-party data centers, we are able to take a responsible, incremental approach to scaling that will allow us to master our manufacturing and field operations rather than rushing into deployments.”