Q2 2024 Highlights
- Revenue from bitcoin mining operations increased by 5% year-over-year to C$3.0 million, compared to C$2.9 million in Q2 2023.
- In response to weakened mining conditions following the fourth halving of Bitcoin’s issuance rate (the “Halving”), we resumed “underclocking” certain machines to maximize mining cash flow. Following these adjustments, our fleetwide active hash rate has reduced to approximately 355 PH/s. These adjustments improved fleet efficiency to approximately 26 joules per terahash (“J/TH”) from 29 J/TH pre-Halving.
- On March 6, 2024, we entered into a binding share exchange agreement providing for a business combination with Kungsleden Inc. (“Kungsleden”), a privately held developer and operator of bitcoin mining data centers. After amending the terms of the original agreement on June 18, 2024, and thereafter receiving the requisite approvals from Cathedra shareholders and the TSX Venture Exchange (the “TSX-V”), we completed the business combination on July 23, 2024, and our shares resumed trading on the TSX-V on August 6, 2024.
- Subsequent to quarter end, we concluded a hosting arrangement with a third-party operator in Tennessee pursuant to the terms of the hosting agreement and consequently relocated approximately 1,129 Bitmain S19J Pro machines from that site to a data center we own and operate in Tennessee. The relocation of these machines was completed on August 28, 2024, and has reduced the effective cash operating cost for these machines by approximately 31%, from US$72.50 per megawatt hour to approximately US$50.00 per megawatt hour.
- We hold approximately C$1.5 million of cash and C$3.4 million of bitcoin (41.1 bitcoin) for total liquidity of C$4.9 million as of August 29, 2024.
Management Commentary
“Despite underwhelming price performance from bitcoin, Q2 was a milestone quarter for Cathedra,” remarked AJ Scalia, CEO of Cathedra. “We announced a strategic business combination with Kungsleden Inc., repositioning our company as a developer and operator of high-density compute infrastructure for bitcoin mining—and potentially other end markets, like artificial intelligence—rather than a pure-play bitcoin miner. By continuing our “underclocking” strategy and relocating machines to lower-cost data centers we own and operate via Kungsleden, we have weathered all-time-low bitcoin mining conditions since the fourth Bitcoin Halving in April. Now that the business combination is completed, we are eager to begin generating cash flow and exploring accretive growth together with the Kungsleden team.”
