Cathedra Bitcoin Inc.: Selling JV Membership Units in North Dakota Bitcoin Mining Data Center for US$21.0 Million
Toronto, Ontario – Cathedra Bitcoin Inc. (TSXV: CBIT) (OTCQB: CBTTF), a leading bitcoin company focused on developing and operating digital infrastructure assets to maximize per-share bitcoin holdings, recently announced that the shareholders of Tirpitz Technology Holdco LLC (Tirpitz), a joint venture that owns and operates a 60-megawatt bitcoin mining data center in North Dakota, have entered into a binding agreement to sell 100% of the membership units in the JV to a third-party bitcoin miner. Cathedra holds a 25% membership interest in the JV, which will be sold in the transaction.
Background of the North Dakota Facility
The North Dakota Facility, located in the United States, is a significant bitcoin mining operation with a capacity of 60 megawatts. This large-scale data center is crucial to Cathedra’s strategy of maximizing its per-share bitcoin holdings through the ownership and operation of digital infrastructure assets. The facility’s sale to a third-party miner marks a strategic move for Cathedra, allowing the company to focus on new opportunities and expand its digital infrastructure portfolio.
Transaction Details
The Transaction involves the sale of 100% of the membership units in Tirpitz to a third-party bitcoin miner for a total cash consideration of approximately US$21.0 million. Cathedra’s 25% membership interest in the JV will be sold as part of this transaction, resulting in a total cash inflow of US$5.25 million for the company.
Impact on Cathedra
The Transaction represents a significant financial boost for Cathedra, with the company set to receive US$5.25 million in cash proceeds. This infusion of capital can be used to fund new projects, invest in research and development, or be distributed to shareholders as dividends. Additionally, the sale of the North Dakota Facility allows Cathedra to focus on its remaining digital infrastructure assets and seek out new opportunities in the rapidly evolving bitcoin industry.
Impact on the World
The sale of the North Dakota Facility to a third-party miner underscores the growing demand for bitcoin mining infrastructure. As more institutions and individuals invest in cryptocurrencies, the need for large-scale mining operations increases. This trend is expected to continue, with the global bitcoin mining market projected to reach US$13.8 billion by 2027, growing at a CAGR of 25.3% from 2020 to 2027 (Grand View Research). The Transaction further solidifies the role of Cathedra as a key player in the bitcoin industry, demonstrating its commitment to capitalizing on the growing demand for digital infrastructure assets.
Conclusion
Cathedra Bitcoin Inc.’s announcement of the sale of its 25% membership interest in Tirpitz Technology Holdco LLC’s North Dakota Facility to a third-party bitcoin miner for US$21.0 million marks a strategic move in the company’s mission to maximize per-share bitcoin holdings. The transaction will result in a cash inflow of US$5.25 million for Cathedra, which can be used to fund new projects, invest in research and development, or be distributed to shareholders. The sale of the North Dakota Facility highlights the growing demand for large-scale bitcoin mining infrastructure and Cathedra’s role as a key player in the industry. As the world continues to embrace cryptocurrencies and the need for digital infrastructure assets increases, Cathedra is well-positioned to capitalize on these trends and create value for its shareholders.
- Cathedra sells 25% membership interest in North Dakota Bitcoin Mining Data Center for US$5.25 million
- Transaction represents strategic move to focus on new opportunities and expand digital infrastructure portfolio
- Growing demand for bitcoin mining infrastructure drives market to reach US$13.8 billion by 2027
