Cathedra Bitcoin Inc. Issues Shareholder Letter and Operational Update

Executive Summary

• The Company commissioned a new 15 MW data center in 2025, boosting total power capacity by ~50% and acquiring supplies to add an additional 25 MW, targeting >60 MW of capacity.
• Strategic focus shifted to “power and infrastructure” with emphasis on sub‑20 MW rural sites, securing below‑market electricity rates and new hosting partnerships to diversify revenue.
• Management highlighted disciplined capital allocation, including repayment of a Bitcoin‑backed loan and redeployment of proceeds into site build‑outs in the Tennessee Valley Authority (TVA) region; 555,000 restricted share units were awarded to directors/officers on Dec 16 2025.

Key Details

• Data Center Commissioning: New 15 MW facility delivered on time and under budget; total operational power capacity now ~45 MW (four data centers).
• Capacity Expansion Plan: Acquired essential supplies/infrastructure for an additional 25 MW, aiming to exceed 60 MW of total capacity.
• Strategic Partnerships: Executed hosting agreements that broaden revenue mix and improve utilization of existing assets.
• Capital Recycling: Paid down Bitcoin‑backed loan at cycle highs; proceeds redirected to site development in the TVA region.
• Share Incentives: Additional 555,000 restricted share units granted to certain directors and officers (Dec 16 2025).
• Operational Discipline: Lean headcount and reduced SG&A to channel capital toward asset growth rather than overhead.
• Outlook for 2026: Target >60 MW capacity, revitalize corporate branding, increase IR communication consistency, and pursue U.S. public‑market listing to enhance liquidity.

Notable Quotes

“Working with Joel the last five months has been extremely rewarding… When he made the decision to allocate the funds from our BTC loan treasury to build and develop a bigger footprint inside the TVA, I knew we had to deliver.” – Tom Masiero, Director & Head of Strategy

Materiality Assessment: Non‑Material – Positive (provides operational progress and strategic outlook but does not contain new earnings, financing, or M&A that would be material).