Highlights
-
Total revenue reached C$5.2 million.
-
The Company recorded a
net loss of C$4.2 million, primarily driven by an unrealized foreign exchange loss of $2.3 million,resulting from the revaluation of intercompany balances denominated in U.S. dollars to Canadian dollars. This non-cash accounting adjustment reflects currency volatility and its impact on financial obligations.
Subsequent events:
-
Leadership Transition: Effective July 10, 2025, Joel Block was appointed Chief Executive Officer and Chairman of the Board of Directors of the Company (the “Board”), bringing extensive industry expertise and operational leadership to the Company.
-
Concurrently, Antonin Scalia and Thomas Armstrong stepped down from their executive and Board roles,transitioning to advisory positions to support transition efforts. -
Debt Repayment:
The Company successfully prepaid its US$2.56 million loan by liquidating approximately 21.5 bitcoin, capitalizing on favorable bitcoin price appreciation at the time of liquidation. -
`Cathedra retained approximately 28.9 bitcoin to bolster its working capital position.’
-
Data Center Expansion: On July 22, 2025, `Cathedra executed a long-term lease agreement to develop a new 15-megawatt (MW) data center, which management expects to increase the Company’s online power capacity by approximately 50%, further enhancing its operational scale and efficiency.’
-
Infrastructure Development: The Company has continued to advance its pipeline of high-potential sites, including the previously announced 10-MW center project in Tennessee, reinforcing its commitment to expanding its bitcoin mining infrastructure.
Management Commentary
“The past few months have been a pivotal period for Cathedra, as we capitalized on favorable market conditions to strengthen our financial position and advance our strategic objectives,” said Joel Block, CEO of Cathedra.
“We took decisive action to prepay existing indebtedness, funded by liquidation of approximately 21.5 bitcoin, which had appreciated by more than 50% since the loan’s inception. The prepayment allows Cathedra to retire the debt efficiently while retaining 28.9 bitcoin to further strengthen its balance sheet. This move enhances our financial flexibility and positions us to pursue high-impact growth initiatives aimed at driving long-term shareholder value”.My Thoughts 💭
(Disclaimer I own a big bag of Cathedra shares)
Not the best quarterly report. The foreign exchange killed profitability and they sold 50% of their stack which is crazy!! But on the flip side they are expanding operations secured a new 15 year lease and now can grow debt free. The leadership change is interesting but so far I like the approach Mr. Block takes to debt, don’t have any! But selling 21.5 BTC now could have been a mistake. If the bitcoin price is up and around $300k by this time next year this may be a horrible decision.