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 announce that the Company entered into an agreement to lease a 2.5-megawatt bitcoin mining facility in Washington State on January 29, 2023. Under the lease agreement, which lasts for an initial term of 24 months, the Company will make lease payments of US$108,000 per month, a rate equivalent to US$0.06 per kilowatt hour, including all electricity costs.
Under the lease agreement, the Company also received a right of first opportunity (“ROFO”) to purchase the 2.5-megawatt facility and several adjacent facilities on the same premises, which together total 10 megawatts of bitcoin mining capacity. The ROFO expires upon termination or expiration of the lease agreement.
Additionally, on January 29, 2023, the Company entered into an operating agreement with a third-party service provider under which the service provider will manage the Company’s bitcoin mining machines at the leased facility in exchange for 10% of the gross revenue produced by the Company’s machines at the leased facility. The operating agreement lasts for an initial term of 24 months.
The Company intends to deploy its final batch of 773 Bitmain Antminer S19J Pro machines at the leased facility upon their arrival, expected by March 2023. The lease and operating agreements commence on the later of (a) that date on which the Company’s machines are delivered to the leased facility or (b) February 14, 2023.
The Company intends to further optimize its fleet of bitcoin mining machines across its two leased facilities in Washington State; such optimizations may include moving machines between the two facilities to better utilize available power capacity and “underclocking” certain machines (i.e., reducing power draw) to improve the Company’s operating margins.
Upon deployment of these 773 S19J Pro machines, the Company expects its diversified bitcoin mining operations to realize active hash rate of at least 322 PH/s, an approximately 30% increase from its current active hash rate of 247 PH/s. The Company will announce the effects on hash rate of any further optimizations upon their completion.
The Company continues to evaluate opportunities to deploy its remaining 490 S19J Pro (100 TH/s) and 50 S19 XP (140 TH/s) machines in a capital-efficient manner.
About Cathedra Bitcoin
Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) is a Bitcoin company that develops and operates world-class bitcoin mining infrastructure.
Cathedra believes sound money and abundant energy are the fundamental ingredients to human progress and is committed to advancing both by working closely with the energy sector to secure the Bitcoin network. Today, Cathedra’s diversified bitcoin mining operations total 247 PH/s and span three states and five locations in the United States. The Company is focused on expanding its portfolio of hash rate through a diversified approach to site selection and operations, utilizing multiple energy sources across various jurisdictions.