Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF)
(“Cathedra”), a Bitcoin company that develops and operates
world-class bitcoin mining infrastructure, and Great American
Mining (“GAM”) (together, the “Companies”), a bitcoin
mining company that provides a solution for oil and gas companies
to reduce flaring and increase oil production, today announce the
Companies have amended their original partnership agreement to
provide for the conclusion of the business relationship by
September 15, 2022 (the “Conclusion Date”).
In 2021, the Companies entered into a business relationship (the
“Original Relationship”) under which Cathedra purchased 12
bitcoin mining containers from GAM and outfitted them with its own
bitcoin mining machines. GAM designed and produced the containers,
installed the mining machines therein, and deployed the containers
on a site in North Dakota (the “Site”) throughout the course
of 2021, where they have been operating using flared gas as a power
source. Under the Original Relationship, Cathedra has paid to
purchase the gas and lease the generators and has remitted a
portion of the mined bitcoin to GAM in the form of a revenue
share.
Due to severe winter weather conditions that resulted in up to
four feet of snow accumulation in multiple storms, the Cathedra and
GAM bitcoin mining operation saw its performance impaired
throughout the month of April, operating at an average of 45% of
expected hash rate during the month. Current hash rate levels and
operating conditions have now returned to normal.
Additionally, the Companies were recently notified by their
generator provider that the generator lease rate would be
increasing by over 50%. In light of this higher cost and the
adverse effect it will have on mining economics at the Site, the
Companies have mutually agreed to work toward a conclusion of the
business relationship and have entered into an amended agreement
that governs the terms of the wind-up (the “Amendment”).
Under the Amendment, Cathedra has agreed to collect its bitcoin
mining machines from the Site on or before the Conclusion Date.
Cathedra intends to redeploy these machines in its own mobile
bitcoin mining containers, the production of which Cathedra began
in March, on an off-grid site with more beneficial economic
characteristics.
Pursuant to the Amendment, GAM will purchase the 12 containers
back from Cathedra for approximately US$935,750, or net book value,
on or before the Conclusion Date. GAM intends to outfit these
containers with its own mining machines and redeploy them on
another site of its choosing.
The Companies have also agreed to modify the terms of the
revenue share for the remaining months of the business
relationship. Under the Amendment, GAM will receive a flat share of
25% of bitcoin mined each month.
“GAM has been a first-class partner for Cathedra in this stage
of our company’s growth. We appreciate GAM’s excellent work
building and outfitting our containers, deploying them in North
Dakota, and maintaining them on our behalf. We look forward to
installing our machines at a low-cost site upon the conclusion of
the business relationship. We wish the GAM team the very best in
their future endeavors,” remarked AJ Scalia, CEO of Cathedra
Bitcoin.
“Cathedra has been a great partner for us as we have scaled the
company over the past year from approximately 1 megawatt to over 20
megawatts of deployed hash rate on the oil fields of North Dakota.
We would like to thank Cathedra and their management team for the
partnership to date, and wish them the best of luck,” commented
Todd Garland, Founder and CEO of Great American Mining.
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 owns 187 PH/s across various
sites around the United States and expects to deploy an additional
538 PH/s in 2022. Upon the full deployment of its purchased
machines, Cathedra’s hash rate is expected to total 725 PH/s. 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.
For more information about Cathedra, visit cathedra.com or
follow Company news on Twitter at @CathedraBitcoin or on Telegram
at @CathedraBitcoin.
About Great American Mining
Great American Mining provides a solution for oil and gas
companies to reduce flaring and increase oil production. GAM has
deployed over 20 megawatts of Bitcoin hash rate across on the oil
fields of North Dakota and manufactures proprietary mobile bitcoin
mining data centers. Great American Mining believes in a future
where all hash rate will become mobile and is on a mission to build
the world's largest fleet of mobile hash rate.
For more information about Great American Mining, please visit
gam.ai and follow GAM on Twitter at @GAMdotAI and LinkedIn.
Cautionary Statement
Trading in the securities of the Company should be considered
highly speculative. No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained herein.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This news release contains certain “forward-looking information”
within the meaning of applicable Canadian securities laws that are
based on expectations, estimates and projections as at the date of
this news release. The information in this release about future
plans and objectives of the Company, are forward-looking
information. Other forward-looking information includes but is not
limited to information concerning: the expected deployment of an
additional miners, the intentions and future actions of senior
management, the intentions, plans and future actions of the
Company, as well as the Company’ ability to successfully mine
digital currency; revenue increasing as currently anticipated; the
ability to profitably liquidate current and future digital currency
inventory; volatility of network difficulty and, digital currency
prices and the resulting significant negative impact on the
Company’s operations; the construction and operation of expanded
blockchain infrastructure as currently planned; and the regulatory
environment of cryptocurrency in applicable jurisdictions.
Any statements that involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as “expects”, or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans”,
“budget”, “scheduled”, “forecasts”, “estimates”, “believes” or
“intends” or variations of such words and phrases or stating that
certain actions, events or results “may” or “could”, “would”,
“might” or “will” be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
information and are intended to identify forward-looking
information.
This forward-looking information is based on reasonable
assumptions and estimates of management of the Company at the time
it was made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others: the ability of the Company to achieve its corporate
objectives or otherwise advance the progress of the Company; risks
related to the international operations; the Company's inability to
obtain any necessary permits, consents or authorizations required
for its activities; an inability to predict and counteract the
effects of COVID-19 on the business of the Company, including but
not limited to the effects of COVID-19 on capital market
conditions, restriction on labor and international travel and
supply chains; general market and industry conditions; and those
risks set out in the Company’s public documents filed on SEDAR. The
Company has also assumed that no significant events occur outside
of the Company’s normal course of business. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
undertakes no obligation to revise or update any forward-looking
information other than as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220503005627/en/
Cathedra Bitcoin Media and Investor Relations Inquiries
Sean Ty Chief Financial Officer ir@cathedra.com
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