Cathedra Bitcoin Inc (CBIT) AI Stock Analysis

• Market Cap: C$29.97M
• Dividend Yield: N/A
• Average Volume (3M): 457.63K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.28
• Revenue Growth: 74.11%
• EPS Growth: N/A
• Country: CA
• Employees: 5
• Sector: Technology
• Sector Strength: 50
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 230,907,230
• 10 Day Avg. Volume: 1,026,339
• 30 Day Avg. Volume: 457,632
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.81
• Price to Cash Flow (P/CF): 0.50
• P/FCF Ratio: 0.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Cathedra Bitcoin Inc's overall score is driven by significant financial and operational challenges, evidenced by profitability and cash flow issues. Technical analysis indicates a bearish trend, though the stock is fundamentally undervalued based on its P/E ratio. The recent partnership with Synota Inc. provides a positive outlook for enhancing financial operations, albeit with limited immediate impact on the stock's valuation.

Positive Factors

Revenue Growth

Cathedra reported September revenue of C$5.9M, up 26% from June’s C$3.0M, due to the completion of the Kungsleden deal, which has pushed the company into a mix of both self and hosted bitcoin mining and hosted facility operation.

Strategic Expansion

The Kungsleden deal serves as a launch pad to build bigger, better data centers serving customers of all types, and presents the most compelling investment argument for Cathedra.

Negative Factors

Investment Risk

An investment in Cathedra Bitcoin is not without a significant level of risk that includes the speculative nature of bitcoin itself as a function of bitcoin pricing and network hash rate (difficulty factor), compounded by the dilution associated with capital raises.

Cathedra Bitcoin Inc Business Overview & Revenue Model

Company Description

Cathedra Bitcoin Inc (CBIT) is a company operating in the cryptocurrency sector, focusing primarily on the mining of Bitcoin. The company is engaged in the development and operation of facilities that utilize advanced hardware and software technologies to mine Bitcoin efficiently. Cathedra Bitcoin Inc aims to increase its mining capacity and efficiency through strategic investments in infrastructure and technology advancements, contributing to the decentralized Bitcoin network.

How the Company Makes Money

Cathedra Bitcoin Inc makes money by mining Bitcoin, which involves solving complex mathematical problems to validate transactions on the Bitcoin network. In return for their computational efforts, the company earns Bitcoin as a reward, which can then be held as an asset or sold on cryptocurrency exchanges for cash or other cryptocurrencies. Additionally, Cathedra Bitcoin Inc may engage in strategic partnerships or investments to optimize its mining operations, potentially sharing infrastructure costs or benefiting from economies of scale. The company's revenue is influenced by factors such as the price of Bitcoin, mining difficulty, energy costs, and the efficiency of their mining hardware.

Cathedra Bitcoin Inc Financial Statement Overview

Summary

Cathedra Bitcoin Inc displays mixed financial performance with growth in revenue but significant profitability and cash flow challenges. The balance sheet shows a high reliance on debt, and consistent negative free cash flow suggests ongoing liquidity issues. Attention to cost control and cash management is crucial for improving financial stability.

Income Statement

The company shows inconsistent revenue growth with a recent positive trend but negative gross profit margins and net profit margins indicate ongoing challenges in cost management. EBIT and EBITDA margins have also been volatile, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates moderate financial health with a high debt-to-equity ratio, suggesting significant leverage. However, the return on equity has improved, and the equity ratio remains stable, providing some financial stability.

Cash Flow

Cash flow analysis reveals negative free cash flow with volatile growth, indicating cash management issues. The operating cash flow consistently trails net income, highlighting potential operational cash constraints.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
13.18M	10.92M	8.81M	7.80M	1.03M	1.68M
	Gross Profit
149.54K	-2.04M	-5.22M	1.83M	-263.40K	429.37K
	EBIT
-5.95M	-5.68M	-23.14M	-1.12M	2.40M	-815.02K
	EBITDA
8.09M	3.98M	-34.63M	4.34M	1.87M	-722.10K
	Net Income Common Stockholders
72.21K	-5.48M	-45.03M	718.11K	5.05M	-1.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.56M	2.57M	3.22M	9.44M	7.05M	10.29M
	Total Assets
11.73M	18.86M	25.76M	58.37M	16.98M	11.23M
	Total Debt
0.00	7.35M	18.67M	19.83M	698.49K	0.00
	Net Debt
-10.56M	6.62M	15.45M	10.39M	-6.35M	-10.29M
	Total Liabilities
217.79K	9.60M	20.99M	23.78M	952.77K	202.13K
	Stockholders Equity
11.51M	9.25M	4.77M	34.59M	16.03M	11.03M
Cash Flow		Free Cash Flow
346.25K	-8.19M	-22.78M	-41.08M	-3.20M	-170.01K
	Operating Cash Flow
373.28K	-8.13M	2.55M	-19.23M	-3.20M	-170.01K
	Investing Cash Flow
10.23M	8.70M	-13.24M	-12.39M	-195.32K	0.00
	Financing Cash Flow
-3.86M	-3.45M	6.19M	34.45M	-202.50K	0.00

Cathedra Bitcoin Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CBIT, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CBIT.

Cathedra Bitcoin Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLXY	65 Neutral	$5.62B	3.13	61.32%	―	―	―
Sector *	58 Neutral	$21.06B	10.51	-17.38%	2.43%	4.55%	-24.07%
CBIT	52 Neutral	C$29.97M	1.91	-4.64%	―	74.11%	―
HUT	49 Neutral	C$1.74B	3.60	2.56%	―	199.41%	―
DMGI	49 Neutral	$51.83M	―	-15.61%	―	17.68%	-278.21%
HIVE	45 Neutral	$339.90M	―	-2.15%	―	27.99%	90.99%
BITF	44 Neutral	$536.44M	―	-11.98%	―	45.19%	-33.48%

Cathedra Bitcoin Inc Corporate Events

Cathedra Bitcoin Partners with Synota to Enhance Financial Operations

Cathedra Bitcoin Inc. announces a partnership with Synota Inc., a software company specializing in automated payments for the energy industry, to enhance its financial operations. This partnership will streamline Cathedra’s settlement processes, improve cash flow, and offer the flexibility of receiving payments in bitcoin or U.S. dollars, potentially enhancing its bitcoin accumulation strategy and reducing credit risk.

Cathedra Bitcoin Expands with New Power Purchase Agreement in Tennessee

Cathedra Bitcoin Inc. has entered into a new 10-megawatt power purchase agreement for a potential bitcoin mining data center in Tennessee. This expansion marks the company’s second site in the state and is expected to begin construction following regulatory approvals. The project will be funded using existing resources, potentially operational within three months, enhancing Cathedra’s infrastructure and market position.

Cathedra Bitcoin Reports Strong Q3 2024 Growth

Cathedra Bitcoin Inc. reported a 20% increase in Q3 2024 revenues, reaching C$5.9 million, following strategic mergers and partnerships in the bitcoin mining sector. The company enhanced its data center operations and entered new profit-sharing agreements to bolster its bitcoin exposure. Cathedra also completed construction of a major data center and resumed trading on the OTCQB Venture Market.

Cathedra Bitcoin Shares Now Trading on OTCQB

Cathedra Bitcoin Inc. has begun trading its shares on the OTCQB Venture Market under the ticker symbol CBTTF, aiming to increase visibility and accessibility for U.S. investors. The company continues to trade on the TSX Venture Exchange and is preparing for a major U.S. stock exchange listing in 2025.