Mr. Sean Ty reports

CATHEDRA BITCOIN ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Cathedra Bitcoin Inc. has released the results of its operations for the second quarter and six months ended June 30, 2023 (Q2 2023).

Second quarter 2023 financial highlights:

• Cathedra's mining operations produced 77.15 gross bitcoin during Q2 2023, compared with 57.65 bitcoin during Q2 2022, an increase of 19.50 bitcoin. The increase was due primarily to the expansion of Cathedra's hash rate from 231 PH/s (pentahash per second) as of June 30, 2022, to 382 PH/s as of June 30, 2023. This expansion of Cathedra's hash rate more than offset an increase in network hash rate, from 214 EH/s (exahash per second) as of June 30, 2022, to 370 EH/s as of June 30, 2023.
• Cathedra recorded revenue of $2.9-million (Canadian) during Q2 2023, compared with $2.5-million (Canadian) during Q2 2022, an increase of $400,000. The increase was due primarily to the expansion of Cathedra's hash rate, which more than offset the increase in network hash rate and a decrease in the average price of bitcoin from $32,492 (U.S.) during Q2 2022 to $28,038 (U.S.) during Q2 2023.
• Cathedra settled $2.5-million (Canadian) of the outstanding principal amount of its 3.5 per cent senior secured convertible debentures into approximately 18.5 million common shares of the company, which were issued at a deemed price of 13.5 Canadian cents per share. As of Aug. 29, 2023, the convertible debentures have an outstanding principal balance of $19.9-million (Canadian), which is due upon maturity on Nov. 11, 2024.
• As of Aug. 29, 2023, Cathedra held approximately $3.7-million (Canadian) of cash and approximately $744,300 (Canadian) of bitcoin (19.55 BTC) for total cash and bitcoin liquidity of approximately $4.4-million (Canadian).

Second quarter 2023 operational highlights:

• Cathedra completed the deployment of the remaining Bitmain Antminer S19J Pro and XP machines that it purchased in Q4 2021 at its leased data centres in Washington and a third party hosting facility in Kentucky.
• Cathedra renewed its hosting agreement with an existing partner in Tennessee for another 12-month term, which began on July 1. Under the terms of the renewed agreement, Cathedra pay a fixed rate of $72.50 (U.S.) per megawatt hour for electricity and hosting services for 1,129 Bitmain Antminer S19J Pro machines and retain the ability to underclock these machines without losing rights to the full power capacity. On Aug. 17, 2023, Cathedra informed the hosting partner of its intention to begin underclocking these machines on Sept. 1, 2023. Through underclocking, Cathedra will reduce the break-even hash price on these machines by 12 per cent to approximately $46 (U.S.) per PH/s per day, ensuring these machines continue to produce positive cash flow.
• Cathedra announced a strategic partnership with 360 Mining, an off-grid bitcoin mining company with a presence in Texas. With the partnership, Cathedra has expanded its operating footprint to a fourth U.S. state and has become the only publicly listed bitcoin miner with operations utilizing both on- and off-grid energy sources. The company has deployed the first of its proprietary bitcoin mining Rovers, which are mobile data centres it designs and manufactures in-house, at 360 Mining's off-grid location in Texas, with 360 Mining providing natural gas and power generation infrastructure to supply continuous electricity to Cathedra's bitcoin mining infrastructure. Cathedra pays an effective rate of $45.80 (U.S.) per megawatt hour for power consumed, plus 10 per cent of gross bitcoin mined at the site. Using underclocked machines which Cathedra has repurposed from its previous partnership with Great American Mining in 2021 to 2022, the initial deployment currently produces approximately five PH/s and is expected to improve to eight PH/s in the coming weeks as Cathedra implements further optimizations. The partnership gives the company the right to up to 2.0 megawatts of total power capacity, which Cathedra expects to produce at least 54 PH/s of total hash rate if fully utilized.
• As of Aug. 29, 2023, the company's active bitcoin mining hash rate totalled 387 PH/s across four states and six locations in the United States.

Management commentary

"Recent weeks have seen the improved bitcoin mining conditions of H1 2023 regress to levels comparable to most challenging periods of Q4 2022. During this time, we remain focused on finding creative, capital-efficient ways to create value for our shareholders. This focus is exemplified by our recent partnership with 360 Mining, under which we will continue to deploy idle hash rate and infrastructure with minimal capex, as well as our ongoing efforts to underclock our machines using custom firmware to ensure profitability. As always, we thank our shareholders for their continued support."

About Cathedra Bitcoin Inc.

Cathedra Bitcoin is a bitcoin company that believes sound money and abundant energy are the keys to human flourishing. The company has diversified bitcoin mining operations that produce 387 PH/s across four states and six locations in the United States. The company is focused on managing and expanding its portfolio of hash rate through a diversified approach to site selection and operations, utilizing multiple energy sources across various jurisdictions.

We seek Safe Harbor.