Mr. Joel Block reports

CATHEDRA BITCOIN ANNOUNCES CORPORATE AND OPERATIONAL UPDATES

Cathedra Bitcoin Inc. has provided corporate and operational updates. The company continues to advance its strategic expansion by building out new infrastructure, executing on a disciplined operational plan designed to increase capacity and optimize for efficiencies, improve site diversification, and enhance long-term power stability.

10-megawatt hosting partnership with Sphere 3D Mining

The company has entered into a new 10-megawatt (MW) hosting agreement with Sphere 3D Mining Corp. This agreement strengthens the company's strategy of distributing operational exposure across multiple hosting providers while maintaining flexibility in deployment scheduling. Initial machine onboarding commenced in November, 2025.

Continuation of hosting partnership with Compass Mining

Further to the company's previously announced partnership on Oct. 24, 2024, the hosting relationship with Compass Mining will continue as planned. Under the partnership, Cathedra hosts 10 MW of Compass Mining's equipment at one of Cathedra's data centres in Kentucky. As part of the partnership, Compass Mining operates the site and pays pass-through power costs plus 50 per cent of net profits (defined as net mining revenue less cost of power) to Cathedra in bitcoin.

Brickyard site expansion to 15 MW

The company has secured approval for a five MW expansion at its Brickyard site in Kentucky, bringing the total planned capacity of the site to 15 MW. Construction is expected to begin in December. The company anticipates this project being completed in a similar time frame as the recently added 15 MW of power capacity, bringing its total power capacity to 50 MW.

Equity grants

Pursuant to the company's long-term incentive plan (the LTIP), the company has granted an aggregate of 235,000 restricted share units (RSUs) and 500,000 share purchase options to certain directors and executive officers of the company. The stock options have an exercise price of $1.42 per share, equal to the closing price of the company's common shares on the facilities of the TSX Venture Exchange on the grant date and representing fair market value as determined under the LTIP. The equity awards were granted in accordance with the LTIP and are intended to further align the interests of the company's leadership team with those of its shareholders, motivate sustained performance, promote retention of key talent and drive long-term value creation. The equity awards are subject to multiyear time-based vesting schedules, as well as the standard terms and conditions contained in the applicable award agreements and the LTIP.

Closing of private placement

Additionally, the company is pleased to announce the closing of a non-brokered private placement of an aggregate of 430,000 units of the company at a price of $1.25 per unit for aggregate gross proceeds of $537,500. Each unit consists of one subordinate voting share and one subordinate voting share purchase warrant, with each warrant entitling the holder thereof to acquire one additional subordinate voting share at an exercise price of $1.88 per share for a period of two years following closing of the offering. The company intends to use the net proceeds from the offering to advance continuing infrastructure development and power expansion.

Management commentary

"The company continues to execute on a disciplined growth plan across both hosted and self-managed infrastructure," said Joel Block, chief executive officer of the company. "I am proud of the team for their hard work continuing to leverage our relationships with our various utility partners to continue to find proprietary opportunities. This type of internal deal flow allows us to minimize the time from signing to turn on, as evidenced by our most recent project. The Brickyard project is the latest example of the value of working directly with our utility partners, and the company continues to benefit by not having to overpay for sites. Furthermore, the successful closing of the offering provides the company with the financial flexibility to accelerate key development milestones and strengthen its balance sheet, while the minimal dilution and inclusion of full warrant coverage reflect continued strong support from new and existing shareholders. Combined with the recently issued equity awards to directors and officers, these steps meaningfully align our leadership team with shareholders and ensure we have both the capital and the motivated talent required to execute our growth strategy and deliver long-term value. We remain excited by the diversification and credit quality of our new and continued relationships with hosting partners and will continue to look to further optimize our power portfolio."

About Cathedra Bitcoin Inc.

Cathedra develops and operates power and digital infrastructure assets across North America. The company hosts bitcoin mining clients across its portfolio of four data centres (45 MW total) in Tennessee and Kentucky. Cathedra also operates a fleet of proprietary bitcoin mining machines at its own and third party data centre, producing approximately 400 PH/s (petahash per second) of hash rate. Cathedra is headquartered in Vancouver and its subordinate voting shares trade on the TSX Venture Exchange under the symbol CBIT and in the OTC market under the symbol CBTTF.

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