- Cathedra Bitcoin (TSXV:CBIT) investors received an update on mining operations and a proposed merger with infrastructure operator Kungsleden Inc.
- The company completed its underclocking adjustments in the past week, further reducing power draw and hash rate to improve its fleet efficiency and cash flow, in response to the fourth Bitcoin halving event
- Back in March, Cathedra and Kungsleden signed a binding share exchange agreement, which is under review by the TSX Venture Exchange, and they expect to receive conditional approval before the end of Q2 2024
- Cathedra Bitcoin Inc. last traded at $0.10 per share
Cathedra Bitcoin (TSXV:CBIT) investors received an update on mining operations and a proposed merger with infrastructure operator Kungsleden Inc.
Bitcoin halving
The Bitcoin mining company completed its underclocking adjustments in the past week, further reducing power draw and hash rate to improve its fleet efficiency and cash flow.
This was done in response to the fourth Bitcoin halving event, which occurred on April 19, reducing the new bitcoin issuance rate by 50 per cent to 3.125 bitcoin per block. Because of this reduction in mining revenue, Cathedra resumed underclocking some of its machines.
These changes are a continuation of the company’s plan to use its aftermarket firmware, CathedraOS, to adjust machine settings and maximize cash flow based on prevailing mining conditions. After these adjustments, Cathedra’s fleetwide active hash rate has reduced to 355 peta hashes per second (PH/s), while fleetwide efficiency has improved to 26 Joules per Terahash (J/TH), a measure of the energy efficiency of mining hardware, from 29 J/TH prior to the halving, reducing the company’s breakeven hash price to less than US$42/PH/s/day.
“The decline in mining revenue since the halving illustrates why we are so excited about our proposed merger with Kungsleden,” Cathedra’s CEO, AJ Scalia said in a news release. “Kungsleden earns fixed-margin revenue by providing hosting services to high-quality Bitcoin mining tenants who run some of the most efficient hardware on the market, which we believe provides a comparatively stable, predictable business model with lower risk. We are also actively exploring other end-markets for high-density compute using Kungsleden’s unique capabilities, such as artificial intelligence.”
Kungsleden merger
Back in March, Cathedra and Kungsleden signed a binding share exchange agreement, which is currently under review by the TSX Venture Exchange. As the two companies work to address the exchange’s comments, they expect to receive conditional approval before the end of Q2 2024.
Over the course of the spring season, Kungsleden’s 60-MW North Dakota data centre activated the first 10 MW of its hosting capacity.
The remaining 50 MW is still under construction and is expected to be completed in the next month. The full 60 MW of hosting capacity has been contracted to a large bitcoin mining counterpart at an average rate of US$74.17 per megawatt (MWh) for an initial one-year term. The tenant intends to deploy a mix of Bitmain S19 XP and S21 machines which would generate a weighted average revenue of US$127 per MWh (assuming hash price of US$55/PH/s/day), implying a breakeven hash price of US$32/PH/s/day.
Cathedra Bitcoin Inc. has diversified Bitcoin mining operations, which produce 382 PH/s across three states and five locations in the United States.
Cathedra Bitcoin Inc. (TSXV:CBIT) last traded at $0.10 per share.
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(Top image: Cathedra Bitcoin Inc.)