The
financial results of yet another publicly traded cryptocurrency miner showed
that it is challenging to make a net profit under current market conditions. Cathedra
Bitcoin Inc. (TSX: CBIT), a Toronto-based Bitcoin mining company, has disclosed its
financial performance for the second quarter of 2023. Despite the report revealing
significant growth in mining output and revenue, the net loss still seems
sizable.
In the
second quarter of 2023, Cathedra Bitcoin mined 77.15 BTC, marking an increase of
19.5 BTC from the 57.65 BTC mined in the same period last year. This growth is
attributed to the company’s hash rate expansion from 231 PH/s to 382 PH/s.
Despite a surge in the network mining difficulty and a drop in Bitcoin’s
average price, the company’s revenue rose from C$2.5 million in Q2 2022 to
C$2.9 million in Q2 2023.
The company
has also significantly reduced its net loss. Last year, it was C$11.9 million
for the three-month period ending in June, and it has now been reduced to C$2.9
million. The net loss for the entire first half of the year was C$5.2 million,
compared to C$15.8 million reported in the first half of 2022.
“Recent
weeks have seen the improved bitcoin mining conditions of H1 2023 regress to
levels comparable to the most challenging periods of Q4 2022. During this time,
we remain focused on finding creative, capital-efficient ways to create value
for our shareholders,” the company commented in the official press
release.
However,
this doesn’t change the fact that Cathedra Bitcoin is another publicly traded
crypto miner that recently published a financial report showing a net loss. The
pattern is usually the same: companies are mining more Bitcoins but cannot
achieve profitability.
Just
yesterday, companies like Canaan and Argo Blockchain released their reports.
The former saw a quarterly revenue increase to $73.9 million, but this was
significantly lower than the $245.9 million reported in Q2 2022. The latter
reported a 31% decline in revenue to $24 million for H1 2023. Riot Platforms
Inc. and Galaxy Digital Holdings Ltd. also posted adverse financial outcomes
for Q2 2023.
These
companies are among five publicly-listed firms that have suffered a $2.8
billion loss following a sharp decline in Bitcoin and the overall
cryptocurrency market in mid-August.
Source: AltIndex
Development despite
Difficult Conditions
Although
market conditions are not favorable, Cathedra Bitcoin is constantly trying to
grow its business. The company managed its debts effectively, converting C$2.5
million of its 3.5% senior secured convertible debentures into 18.5 million
common shares. As of the end of August 2023, the company holds approximately
C$4.4 million in cash and Bitcoin , providing a solid liquidity position.
The company
completed the deployment of Bitmain Antminer S19J Pro and XP machines at its
data centers in Washington and a facility in Kentucky. A renewed hosting
agreement with a partner in Tennessee and a new strategic partnership with 360
Mining in Texas further expanded its operational footprint.
“This
focus is exemplified by our recent partnership with 360 Mining, under which we
will continue to deploy idle hash rate and infrastructure with minimal capex,
as well as our ongoing efforts to underclock our machines using custom firmware
to ensure profitability. As always, we thank our shareholders for their
continued support,” the company added.
Cathedra
Bitcoin aims to enhance its energy efficiency by underclocking its mining
machines, thereby reducing the break-even hash price by 12%. This move is
expected to maintain the machines’ positive cash flow.
The
financial results of yet another publicly traded cryptocurrency miner showed
that it is challenging to make a net profit under current market conditions. Cathedra
Bitcoin Inc. (TSX: CBIT), a Toronto-based Bitcoin mining company, has disclosed its
financial performance for the second quarter of 2023. Despite the report revealing
significant growth in mining output and revenue, the net loss still seems
sizable.
In the
second quarter of 2023, Cathedra Bitcoin mined 77.15 BTC, marking an increase of
19.5 BTC from the 57.65 BTC mined in the same period last year. This growth is
attributed to the company’s hash rate expansion from 231 PH/s to 382 PH/s.
Despite a surge in the network mining difficulty and a drop in Bitcoin’s
average price, the company’s revenue rose from C$2.5 million in Q2 2022 to
C$2.9 million in Q2 2023.
The company
has also significantly reduced its net loss. Last year, it was C$11.9 million
for the three-month period ending in June, and it has now been reduced to C$2.9
million. The net loss for the entire first half of the year was C$5.2 million,
compared to C$15.8 million reported in the first half of 2022.
“Recent
weeks have seen the improved bitcoin mining conditions of H1 2023 regress to
levels comparable to the most challenging periods of Q4 2022. During this time,
we remain focused on finding creative, capital-efficient ways to create value
for our shareholders,” the company commented in the official press
release.
However,
this doesn’t change the fact that Cathedra Bitcoin is another publicly traded
crypto miner that recently published a financial report showing a net loss. The
pattern is usually the same: companies are mining more Bitcoins but cannot
achieve profitability.
Just
yesterday, companies like Canaan and Argo Blockchain released their reports.
The former saw a quarterly revenue increase to $73.9 million, but this was
significantly lower than the $245.9 million reported in Q2 2022. The latter
reported a 31% decline in revenue to $24 million for H1 2023. Riot Platforms
Inc. and Galaxy Digital Holdings Ltd. also posted adverse financial outcomes
for Q2 2023.
These
companies are among five publicly-listed firms that have suffered a $2.8
billion loss following a sharp decline in Bitcoin and the overall
cryptocurrency market in mid-August.
Source: AltIndex
Development despite
Difficult Conditions
Although
market conditions are not favorable, Cathedra Bitcoin is constantly trying to
grow its business. The company managed its debts effectively, converting C$2.5
million of its 3.5% senior secured convertible debentures into 18.5 million
common shares. As of the end of August 2023, the company holds approximately
C$4.4 million in cash and Bitcoin , providing a solid liquidity position.
The company
completed the deployment of Bitmain Antminer S19J Pro and XP machines at its
data centers in Washington and a facility in Kentucky. A renewed hosting
agreement with a partner in Tennessee and a new strategic partnership with 360
Mining in Texas further expanded its operational footprint.
“This
focus is exemplified by our recent partnership with 360 Mining, under which we
will continue to deploy idle hash rate and infrastructure with minimal capex,
as well as our ongoing efforts to underclock our machines using custom firmware
to ensure profitability. As always, we thank our shareholders for their
continued support,” the company added.
Cathedra
Bitcoin aims to enhance its energy efficiency by underclocking its mining
machines, thereby reducing the break-even hash price by 12%. This move is
expected to maintain the machines’ positive cash flow.
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- Source: https://www.financemagnates.com//cryptocurrency/btc-miners-struggle-to-break-even-cathedra-bitcoin-reports-c29-million-loss/
