Business
Cathedra Bitcoin Announces Cancellation of Previously Announced Non-Brokered Offering
Toronto, Ontario--(Newsfile Corp. - October 18, 2024) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC P...
About this update from Cathedra Bitcoin Inc
[{"type":"text","content":"Cathedra Bitcoin Announces Cancellation of Previously Announced Non-Brokered OfferingToronto, Ontario--(Newsfile Corp. - October 18, 2024) - Cathedra Bitcoin Inc. (TSXV: CBIT) (OTC Pink: CBTTF) (\"Cathedra\" or the \"Company\"), a bitcoin company that develops and operates digital infrastructure assets with the goal of maximizing its per-share bitcoin holdings, announces that further to the Company's press release dated September 19, 2024, it will not be proceeding with the non-brokered private placement financing of 25,000,000 units of the Company at a price of C$0.10 per Unit. \"We initially viewed a LIFE offering as a means to quickly acquire bitcoin in the open market at below US$60,000, thereby increasing the Company's per-share bitcoin holdings. In recent weeks, it has become clear that capital market conditions are not conducive to an equity offering at this time,\" remarked AJ Scalia, CEO of the Company. \"Instead, we are evaluating several alternative transactions and strategies that we believe would result in even greater bitcoin-per-share accretion, including deals with hosting clients which involve a bitcoin profit-share construct for Cathedra. Furthermore, our recent warrant repricing has the potential to unlock US$3.2 million of proceeds at a strike price of C$0.12, which we intend to invest in bitcoin and bitcoin-generating assets if and when these warrants are exercised. We will continue to assess financing alternatives as they arise.\"In July, the Company completed a strategic merger with Kungsleden, Inc., a U.S.-based developer and operator of bitcoin mining data centers that has grown its owned data center capacity at a 127% CAGR since inception in 2022. As of market close on October 17, 2024, the pro forma Company's market capitalization totaled approximately US$50 million.In recent weeks, the Company energized another 20 megawatts of capacity at its North Dakota data center, in which Cathedra is a 25% partner, bringing the total energized capacity on-site to 30 megawatts of the total expected 60 megawatts. The Company expects to energize the remaining 30 megawatts by the end of October. At time of publishing, the Company holds approximately 44.3 bitcoin worth approximately US$3.0 million and amounting to approximately 5 satoshis (or \"sats\") per share.About Cathedra BitcoinCathedra Bitcoin Inc. develops and...