Mr. A.J. Scalia reports

CATHEDRA BITCOIN ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL RESULTS

Cathedra Bitcoin Inc. has released its fourth quarter and full-year audited financial results for 2023.

Fiscal Year 2023 Financial Highlights

Revenue from bitcoin mining operations increased by 24% to C$10.9 million, compared to C$8.8 million in 2022.

Gross bitcoin produced by mining operations increased by 13% to 279.2 bitcoin, compared to 246.9 bitcoin in 2022.

Total debt decreased by 75% to C$5.7 million, compared to C$22.4 million as of December 31, 2022, resulting in a C$5.5 million gain on the settlement of debt. Furthermore, the Company extended the maturity on the remaining C$5.7 million of outstanding debt by 12 months to November 2025.

Total shareholders' equity increased by 94% to C$9.3m from C$4.8m as of December 31, 2022.

The Company held C$1.5 million of cash and C$4.3 million of bitcoin (44.8 bitcoin) for total liquidity of C$5.8 million as of March 28, 2024.

Fiscal Year 2023 Operational Highlights

The Company completed the capital-efficient deployment of its new S19J Pro and S19 XP machines at leased and third-party data centers, increasing its total bitcoin mining hash rate by 99% from 203 PH/s to 403 PH/s as of December 31, 2023.

The Company continued its leadership in "underclocking" machines to optimize its operations, improving machine efficiency and cash flow margins at multiple sites by up to 36%.

The Company launched an aftermarket software product for bitcoin mining machines, CathedraOS, which allows users to achieve similar underclocking performance as Cathedra.

True to its commitment to diversification of jurisdictions and energy sources, the Company launched an off-grid mining partnership with 360 Mining, under which Cathedra deployed one of its modular bitcoin mining data centers at 360 Mining's off-grid site in Texas to produce an incremental 5 PH/s.

The Company has prepared for the upcoming Bitcoin Halving, after which the rate of new bitcoin issuance will be reduced by 50% to 3.125 bitcoin per block, by structuring key hosting agreements to maintain flexibility in the amount of power the Company draws at each site. In the event mining economics deteriorate considerably after the Halving, the Company reserves the right to underclock its machines to reduce its power draw and improve its margins across the majority of its fleet.

Subsequent to the end of fiscal year 2023, on March 6, 2024, the Company entered into a binding share exchange agreement with Kungsleden Inc., a privately held developer and operator of bitcoin mining data centers. The combined company is expected to own and operate a 45-MW portfolio of bitcoin mining hosting data centers across four sites in three U.S. states, in addition to Cathedra's 403 PH/s of existing bitcoin mining hash rate. The transaction is expected to close in the second quarter of 2024, subject to certain conditions precedent and customary regulatory and shareholder approvals.

Management Commentary

"During 2023, we nearly doubled Cathedra's deployed hash rate from 203 PH/s to 403 PH/s and ensured the Company's survival through the bear market with our creative and innovative underclocking strategies," remarked A.J. Scalia, CEO of Cathedra. "Furthermore, the debt settlements we negotiated with creditors have reset our balance sheet and positioned us to capitalize on the recovery of the Bitcoin market. The proposed merger with Kungsleden will put us on a new growth trajectory and transform our business model from a pure-play miner that is fully exposed to bitcoin volatility to a developer and operator of data center infrastructure, with a current focus on Bitcoin and an eye toward other end-markets like artificial intelligence. We are working tirelessly to close the merger so that we can begin executing against this new vision alongside the Kungsleden team."

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 403 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.