Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Launched a new ESG conscious Bitcoin mining venture with Great American Mining (GAM), utilizing flared/vented gas for electricity generation, reducing operational risk and environmental impact.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High electricity costs in traditional Bitcoin mining.
• Mining difficulty fluctuations affecting profitability.
• Price volatility of Bitcoin.
• Access to power and electricity rate risks.
• Regulatory requirements and changes.
• Cryptocurrency industry risks (adoption, regulation, etc.).
• Risk of loss, theft, or restriction on access to Bitcoin.
• Risk of malicious actors.
• Risk of reduced incentives for Bitcoin mining.
• Facility development risks and cost overruns.
• Risk of non-availability of insurance.
• Bitcoin network risks (software upgrades, forks).
• Momentum pricing risk and volatility.
• Cryptocurrency exchange risks (fraud, security breaches).
• Banking risks (account closures).
• Technological system risks (cybersecurity, equipment failure).
• Competitive risks.
• Technological obsolescence.
• Hardware supply risks.
• Risk of equipment breakdown.
• Profitability risks.
• Third-party risks.
• Unforeseen expenses.
• Geopolitical risks.
• Litigation risks.
• Key personnel risks.

Mitigation Strategies

• Partnered with GAM to utilize flared natural gas for electricity generation at a significantly lower cost ($0.035/kWh).
• Efficient mining operations allowing the company to withstand price decreases and difficulty increases.
• Prudent management of resources and accumulation of Bitcoin during periods of recovery.
• Active monitoring of Bitcoin pricing and market volatility to determine risk mitigation strategies.
• Maintaining a strong cash position.
• Share buyback and cancellation of 1,450,000 common shares.
• Bought deal private placement offering for aggregate gross proceeds of $9.3 million.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Launched a new ESG conscious Bitcoin mining venture with Great American Mining (GAM), reducing methane emissions by preventing approximately 450 MCFD of flared gas from being combusted into the atmosphere from the North Dakota Fortress GAM deployment of 3 containers.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Electricity costs are the primary determinant in the profitability of proof-of-work mining of digital currencies.
• Mining difficulty affects the profitability of mining Bitcoin.
• Maintaining a strong cash balance during a difficult period of Bitcoin mining economics.
• Securing additional financing to fund future operations and expansion plans.
• Risk of loss, theft, or restriction on access to cryptocurrencies.
• Risk of malicious actors altering the blockchain.
• Risk of reduced incentives for miners to contribute processing power to the network.
• Facility development risks, including delays and cost overruns.
• Risk of non-availability of insurance.
• Regulatory requirements and changes in government policies.
• Risks associated with the cryptocurrency industry's development and acceptance.
• Risks related to cryptocurrency exchanges, including fraud and security failures.
• Banking risks, including the refusal of banks to provide services.
• Risk of technological system failure.
• Technological obsolescence risk.
• Hardware supply risk.
• Risk of equipment breakdown.
• Profit risk and the need for additional financing.
• Third-party risks related to software and services.
• Intellectual property risks.
• Contractual risks.
• Unforeseen expenses.
• Geopolitical risks affecting cryptocurrency prices.
• Litigation risks.
• Key personnel risks.

Mitigation Strategies

• Embarked on a new strategic venture whereby electricity is generated off-grid by converted flared/vented gas in the natural gas fields, using generator sets, into electrical power at an estimated cost of $0.035/kWh.
• Running a lean operation and minimizing costs to maintain cash position.
• Actively monitoring Bitcoin pricing, market volatility, and its own balance of Bitcoin to determine an appropriate risk mitigation strategy.
• Maintaining sufficient cash balances to meet financial liabilities.
• Storing coins offline.
• Continually reviewing and seeking to upgrade its technical infrastructure and provide for certain system redundancies and backup power to limit the likelihood of systems overload or failure.
• Maintaining insurance against risks in the operation of its business.
• Seeking to obtain all necessary licenses and permits.
• Following the chain with the greatest proof of work in the fork (in case of blockchain forks).
• Investing in hardware and equipment to remain competitive.
• Implementing security procedures to protect the storage, acceptance, and distribution of data relating to its inventory of cryptocurrencies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Launched a new ESG conscious Bitcoin mining venture with Great American Mining (GAM), utilizing flared/vented gas for electricity generation, reducing operational risk and environmental impact.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Electricity costs, mining difficulty, hardware obsolescence, regulatory changes, cryptocurrency market volatility, access to power, banking risks, security risks, geopolitical risks, litigation risks, key personnel risks, and third-party risks.
• Limited operating history and dependence on retained earnings for working capital.

Mitigation Strategies

• Strategic venture with GAM for off-grid electricity generation at a competitive cost of $0.035/kWh.
• Efficient mining operations allowing the company to withstand price decreases in Bitcoin and increases in mining difficulty.
• Prudent management of resources, including accumulating Bitcoin during periods of recovery.
• Private placement raising $9.3 million in capital.
• Share buyback and cancellation of 1,450,000 common shares.
• Active monitoring of Bitcoin pricing and market volatility to determine appropriate risk mitigation strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes

Opportunities

• ESG conscious mining venture

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• CathedraOS