Mr. Sean Ty reports

CATHEDRA BITCOIN ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

Cathedra Bitcoin Inc. has released the results of its operations for the third quarter and nine months ended Sept. 30, 2023.

Third Quarter 2023 Financial Highlights

• Our mining operations produced 73.40 bitcoin during Q3 2023, compared to 67.09 bitcoin during Q3 2022, an increase of 6.31 bitcoin. The increase was due primarily to the expansion of our hash rate from 166 PH/s as of September 30, 2022, to 355 PH/s as of September 30, 2023. This expansion of our hash rate more than offset an increase in network hash rate, from 263 EH/s as of September 30, 2022, to 392 EH/s as of September 30, 2023.
• We recorded revenue of $2.8 million during Q3 2023, compared to $1.5 million during Q3 2022, an increase of $1.3 million. The increase was due primarily to the expansion of our hash rate from 166 PH/s as of September 30, 2022, to 355 PH/s as of September 30, 2023. An increase in the average price of bitcoin from US$21,249 during the three months ended September 30, 2022, to US$28,086 during the three months ended September 30, 2023, was more than offset by an increase in network hash rate, from 263 EH/s as of September 30, 2022, to 392 EH/s as of September 30, 2023.
• We filed a final base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada. The shelf prospectus will be valid for a 25-month period, during which time we may issue common shares, warrants, subscription receipts, units, debt securities, and share purchase contracts in amounts at prices and on terms based on market conditions at the time of sale and set forth in an accompanying prospectus supplement having an aggregate offering amount of up to US$10 million.
• Subsequent to quarter end, on November 20, 2023, we entered into a binding term sheet to settle in shares and repay a portion of the C$19.8 of outstanding principal of our 3.5% senior secured convertible debentures due November 11, 2024. Under the agreement, we expect to repay C$2.0 million to retire C$3.3 million of the outstanding principal upon closing, such that the aggregate principal outstanding prior to the debt settlement is expected to be C$16.5 million. Additionally, we expect to settle up to C$10.9 million of the outstanding principal into up to 98.2 million common shares of the Company, which will be issued at a deemed price of C$0.1114 per share. In connection with the transaction, the debenture holders have also agreed to extend the maturity date of any remaining debentures following the repayment and settlement by one year, to November 11, 2025. The debt settlement and maturity extension are subject to completion of definitive documentation and receipt of regulatory approvals, including the approval of the TSX-V. We expect that the proposed transaction will optimize our capital structure, assist in preserving cash for working capital, and allow us to refocus on profitable growth. Our board of directors has reviewed the proposed transaction and believes it is in the best interests of shareholders.
• As of November 28, 2023, we held approximately C$3.1 million of cash and approximately C$1.4 million of bitcoin (26.91 bitcoin) for total cash and bitcoin liquidity of approximately C$4.5 million.

Third Quarter 2023 Operational Highlights

• We completed the initial deployment under our partnership with 360 Mining, an off-grid bitcoin mining company with a presence in Texas. With the partnership, we have expanded our operating footprint to a third US state and have become the only publicly listed bitcoin miner with operations utilizing both on- and off-grid energy sources. The deployment utilizes our first proprietary bitcoin mining Rover-mobile data centers we design and manufacture 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 our bitcoin mining infrastructure. The deployment currently produces approximately 5 PH/s using underclocked, older-generation machines that would otherwise be uneconomical.
• As of November 28, 2023, the Company's active bitcoin mining hash rate totaled 355 PH/s across three states and five locations in the United States, utilizing both on- and off-grid energy sources.

Management Commentary

"With the approval of a spot bitcoin ETF on the horizon in the U.S., and the Halving expected to occur in early 2024, we are optimistic that the worst of the bitcoin bear market is behind us. With that in mind, we have spent the past several months preparing for better times. We continue to underclock our machines at several sites to maximize our net cash flow and reserve the right to increase the clocks on many of these machines to increase our hash rate when the time is right. In Q3, we announced the launch of CathedraOS, the culmination of our technology team's efforts to productize and release to the public the firmware we have relied on to such great effect during the bear market. We have recently taken steps to consolidate machines at our partners' hosting facilities to streamline our operations and have restructured key hosting agreements to allow for the maximum flexibility as we approach the Halving. Importantly, the recent debt settlement and maturity extension we announced cleans up our balance sheet and positions the Company for growth as the bitcoin market continues its recovery. We are very optimistic about the potential for improved conditions for the entire bitcoin industry in 2024."

About Cathedra Bitcoin

Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQB: CBTTF) is a Bitcoin company that believes sound money and abundant energy are the keys to human flourishing. The Company has diversified bitcoin mining operations which produce 355 PH/s across three states and five 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.