Cathedra Bitcoin Announces Off-Grid Bitcoin Mining Partnership With 360 Mining
Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra” or the “Company”), is pleased to announce a strategic partnership with 360 Mining, Inc (“360 Mining”), a Delaware incorporated off-grid bitcoin mining company.
Under the partnership, Cathedra will deploy mobile data centers and bitcoin mining machines at 360 Mining’s off-grid location in Texas, with 360 Mining providing natural gas and power generation infrastructure to supply continuous electricity to Cathedra’s bitcoin mining infrastructure. Cathedra will pay 360 Mining a rate of US$55.00 per megawatt hour for power consumed, plus 10% of gross bitcoin mined at the site. The parties also reserve the option to abstain from mining bitcoin to sell the natural gas to market in the event it is economically advantageous to do so.
The partnership gives Cathedra the rights to 2.0 megawatts of power capacity, with an initial deployment of 0.3 megawatts to be completed in the next 60 days.
For the initial deployment, Cathedra will deploy one of its proprietary bitcoin mining “Rovers,” mobile bitcoin mining data centers which the Company designed and manufactured in-house, outfitted with legacy Whatsminer M31S and M32S machines from the Company’s partnership with Great American Mining in 2021-2022.
The Company intends to apply its industry-leading underclocking capabilities to these machines to achieve an efficiency of approximately 37 joules per terahash, up to a 30% improvement upon the machines’ factory efficiency. With these underclocked machines, the initial deployment will produce at least 8 PH/s of incremental hash rate with minimal capital expenditure from Cathedra.
Upon completion of any subsequent deployments, the Company expects the full 2.0 megawatts of bitcoin mining capacity under the partnership to produce at least 54 PH/s of incremental hash rate, though the exact amount will vary based on the models of machines deployed and selected underclocking settings. The Company will provide subsequent updates to shareholders as more hash rate is deployed under the partnership in the coming months.
With the partnership, Cathedra expands its operating footprint to a fourth U.S. state and becomes the only publicly listed bitcoin miner with operations utilizing both on- and off-grid energy sources.
“We are excited to begin working with 360 Mining, a company run by bitcoiners who have put in the proof-of-work to develop off-grid mining expertise,” commented Cathedra’s Chairman and President, Drew Armstrong.
“This partnership is an important step for Cathedra. With the onset of the bitcoin bear market last year, we were forced to pause our Rover manufacturing efforts and pursuit of off-grid energy to focus on maximizing near-term operating cash flow. As part of this focus on profitability, we pioneered the use of underclocking techniques on latest-generation machines to improve efficiency and operating margins. Now, this partnership synthesizes all of these initiatives, leveraging our proprietary Rovers, industry-leading underclocking capabilities, and experience mining off-grid. And by utilizing idle infrastructure and machines, we are growing our hash rate with minimal incremental capital investment,” Armstrong added.
“We are thrilled to partner with Cathedra to pioneer a new hosting model that offers industry leading downside protection via exposure to natural gas. This strategic partnership will allow 360 Mining to monetize our gas at a higher $/MCF while further legitimizing the value proposition of off-grid vertical integration,” commented 360 Mining’s CEO, Chris Alfano.
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