Crypto miner Cathedra Bitcoin (CBIT) cuts payroll by 60% as crypto winter bites

Canadian publicly listed Bitcoin (BTC) mining firm Cathedra Bitcoin (TSXV: CBIT) has announced a raft of measures it adopted to navigate the ongoing crypto bear market. 

The firm has since slashed its payroll by over 60% within the last two months as a means to cut operational costs amid the prevailing depressed markets, Cathedra Bitcoin said in a press statement on November 14. 

Some of the measures adopted by the company entail implementing lay-offs and salary reductions, canceling real estate leases, and cutting out other general and administrative costs.

“Our primary aim is to ensure the survival of Cathedra during this challenging period so that shareholders can benefit from the next Bitcoin bull cycle. We thank our shareholders for their continued support,” said AJ Scalia, CEO of Cathedra Bitcoin.

Positive cash flow

However, the company stated that its existing Bitcoin mining operations in five locations are returning positive operating cash flow. For instance, as of November 11, 2022, Cathedra Bitcoin’s 203 PH/s mining hash rate produced a trailing 30-day revenue of US$414,640 that resulted from average uptime of 98%. 

Amid the mitigation measure, the company’s stock on the Toronto Stock Exchange has plunged by over 40% in five days. 

At the same time, the company continues to ship new mining equipment that seeks to operate efficiently despite the prevailing crypto market conditions.

Furthermore, the statement indicated that the company continues to liquidate all mined Bitcoin daily and holds $2,505,861 in cash and cash equivalents as of November 11. 

As per the Finbold report, most Bitcoin miners are selling their haul, moving away from the traditional strategy of ‘HODLing.’ Most of the miners are selling to cover related bills like electricity. 

Notably, Bitcoin has plunged in value partly due to the prevailing macroeconomic conditions led by high inflation.