Cathedra Bitcoin (CBTTF) announces plans to restate its Q3-2024 financial statements due to accounting errors discovered during the preparation of year-end 2024 filings. The restatement primarily stems from errors in the historical financial statements of Kungsleden Inc., which Cathedra acquired through a business combination on July 23, 2024.
The key issues requiring restatement include: (1) the need to consolidate the Company’s North Dakota data center joint venture, which was deemed to be under Company control; (2) different judgments in accounting estimates for lease arrangements; and (3) misstatements in Kungsleden’s opening balances affecting Q3-2024 financials.
The Company expects to file the restated Q3-2024 documents around April 30, 2025. Importantly, the restatement does not reflect any changes in operations or business performance, and is not expected to impact the Company’s cash balance as of September 30, 2024, or net cash flow changes for the nine months ended September 30, 2024.
Cathedra Bitcoin (CBTTF) annuncia l’intenzione di rivedere i propri bilanci del terzo trimestre 2024 a causa di errori contabili scoperti durante la preparazione delle dichiarazioni di fine anno 2024. La revisione deriva principalmente da errori nei bilanci storici di Kungsleden Inc., acquisita da Cathedra tramite una combinazione aziendale il 23 luglio 2024.
Le principali problematiche che richiedono la revisione includono: (1) la necessità di consolidare la joint venture del data center del Nord Dakota, ritenuta sotto il controllo della Società; (2) valutazioni differenti nelle stime contabili per i contratti di locazione; e (3) errori nei saldi di apertura di Kungsleden che influenzano i dati finanziari del terzo trimestre 2024.
La Società prevede di depositare i documenti rivisti del terzo trimestre 2024 intorno al 30 aprile 2025. È importante sottolineare che la revisione non comporta modifiche nelle operazioni o nelle performance aziendali, né si prevede che influisca sul saldo di cassa al 30 settembre 2024 o sui flussi di cassa netti per i nove mesi terminati al 30 settembre 2024.
Cathedra Bitcoin (CBTTF) anuncia planes para reformular sus estados financieros del tercer trimestre de 2024 debido a errores contables descubiertos durante la preparación de los informes de fin de año 2024. La reformulación se debe principalmente a errores en los estados financieros históricos de Kungsleden Inc., que Cathedra adquirió mediante una combinación de negocios el 23 de julio de 2024.
Los problemas clave que requieren la reformulación incluyen: (1) la necesidad de consolidar la empresa conjunta del centro de datos en Dakota del Norte, considerada bajo control de la Compañía; (2) diferentes juicios en las estimaciones contables para los contratos de arrendamiento; y (3) errores en los saldos iniciales de Kungsleden que afectan los estados financieros del tercer trimestre de 2024.
La Compañía espera presentar los documentos reformulados del tercer trimestre de 2024 alrededor del 30 de abril de 2025. Es importante destacar que la reformulación no refleja cambios en las operaciones o el desempeño comercial, y no se espera que impacte el saldo de efectivo al 30 de septiembre de 2024 ni los cambios en el flujo de efectivo neto para los nueve meses terminados el 30 de septiembre de 2024.
Cathedra Bitcoin (CBTTF)는 2024년 연말 보고서 준비 과정에서 발견된 회계 오류로 인해 2024년 3분기 재무제표를 재작성할 계획임을 발표했습니다. 재작성의 주요 원인은 2024년 7월 23일 사업 결합을 통해 인수한 Kungsleden Inc.의 과거 재무제표 오류 때문입니다.
재작성을 필요로 하는 주요 문제는 다음과 같습니다: (1) 회사가 통제하는 것으로 판단된 노스다코타 데이터 센터 합작 투자회사의 연결 필요성; (2) 임대 계약에 대한 회계 추정의 다른 판단; (3) 3분기 2024년 재무제표에 영향을 미치는 Kungsleden의 기초 잔액 오류.
회사는 2025년 4월 30일경에 재작성된 2024년 3분기 문서를 제출할 예정입니다. 중요한 점은 이번 재작성은 운영이나 사업 실적의 변화를 반영하지 않으며, 2024년 9월 30일 기준 현금 잔액이나 2024년 9월 30일 종료된 9개월간 순현금 흐름 변화에 영향을 미치지 않을 것으로 예상된다는 것입니다.
Cathedra Bitcoin (CBTTF) annonce son intention de retraiter ses états financiers du troisième trimestre 2024 en raison d’erreurs comptables découvertes lors de la préparation des rapports de fin d’année 2024. Ce retraitement provient principalement d’erreurs dans les états financiers historiques de Kungsleden Inc., acquis par Cathedra via une combinaison d’entreprises le 23 juillet 2024.
Les principaux points nécessitant un retraitement sont : (1) la nécessité de consolider la coentreprise du centre de données du Dakota du Nord, considérée comme sous le contrôle de la Société ; (2) des jugements différents dans les estimations comptables des contrats de location ; et (3) des erreurs dans les soldes d’ouverture de Kungsleden affectant les états financiers du troisième trimestre 2024.
La Société prévoit de déposer les documents retraités du troisième trimestre 2024 aux alentours du 30 avril 2025. Il est important de souligner que ce retraitement ne reflète aucun changement dans les opérations ou la performance commerciale, et ne devrait pas impacter le solde de trésorerie au 30 septembre 2024 ni les variations de flux de trésorerie net pour les neuf mois clos au 30 septembre 2024.
Cathedra Bitcoin (CBTTF) kündigt Pläne zur Neubewertung seiner Finanzberichte für das dritte Quartal 2024 an, aufgrund von bei der Erstellung der Jahresabschlussunterlagen 2024 entdeckten Buchhaltungsfehlern. Die Neubewertung resultiert hauptsächlich aus Fehlern in den historischen Finanzberichten von Kungsleden Inc., die Cathedra am 23. Juli 2024 im Rahmen einer Unternehmenszusammenführung erworben hat.
Die wesentlichen Punkte, die eine Neubewertung erfordern, umfassen: (1) die Notwendigkeit, das Joint Venture des Rechenzentrums in North Dakota, das als unternehmensbeherrscht eingestuft wurde, zu konsolidieren; (2) unterschiedliche Beurteilungen bei buchhalterischen Schätzungen von Leasingverträgen; und (3) Fehlangaben in den Anfangsbeständen von Kungsleden, die die Finanzzahlen für das dritte Quartal 2024 beeinflussen.
Das Unternehmen erwartet, die überarbeiteten Unterlagen für das dritte Quartal 2024 bis etwa 30. April 2025 einzureichen. Wichtig ist, dass die Neubewertung keine Änderungen in den Geschäftsabläufen oder der Geschäftsentwicklung widerspiegelt und voraussichtlich keine Auswirkungen auf den Kassenbestand zum 30. September 2024 oder die Netto-Cashflow-Veränderungen für die neun Monate bis zum 30. September 2024 haben wird.
Toronto, Ontario–(Newsfile Corp. – April 27, 2025) – Cathedra Bitcoin Inc. (TSXV: CBIT) (OTCQB: CBTTF) (the “Company” or “Cathedra“), a bitcoin company that develops and operates digital infrastructure assets with the goal of maximizing its per-share bitcoin holdings, announces that it intends to file restated financial statements, CEO and CFO certifications, and management discussion and analysis for the three and nine-month period ended September 30, 2024 (the “2024 Q3 Filings“), which shall amend and restate the 2024 Q3 Filings. The Company currently anticipates being able to file the restated 2024 Q3 Filings on or around April 30, 2025.
In the course of preparation of the Company’s financial statements for the year ended December 31, 2024, and related management discussion and analysis (the “Annual Filings“), the Company discovered certain errors in the historical financial statements of Kungsleden, Inc. (“Kungsleden“) for the twelve months ended December 31, 2023, and December 31, 2022, the three-month period ended March 31, 2024, and the three and six-month period ended June 30, 2024 (collectively, the “Kungsleden Historical Financial Statements“). The Company acquired Kungsleden pursuant to a business combination transaction which closed on July 23, 2024 (the “Business Combination“). The Kungsleden Historical Financial Statements were prepared and finalized prior to the closing of the Business Combination.
Due to the errors in accounting treatment of certain items in the Kungsleden Historical Financial Statements and the Company’s reliance thereon, the Company’s financial statements for the three and nine-month period ended September 30, 2024 also contained certain misstatements, which the Company intends to correct in the refiling:
(i) the Company and its auditors have determined that the Company’s North Dakota data center joint venture, in which the Company owns a minority interest and which the Company has agreed to sell, as disclosed in the Company’s press release dated March 4, 2025, was deemed to be controlled by the Company as of and for the year ended December 31, 2024, and therefore should have been consolidated into the Company’s financial statements in the 2024 Q3 Filings;
(ii) the Company and its auditors applied different judgments in accounting estimates pertaining to lease arrangements in the Kungsleden Historical Financial Statements, which in turn affected the Company’s financial statement balances in the 2024 Q3 Filings; and
(iii) the Company and its auditors have identified misstatements of certain opening balances in the Kungsleden Historical Financial Statements, which in turn affected the Company’s financial statement balances in the 2024 Q3 Filings.
These discoveries have necessitated a broader scope of audit procedures which are currently underway and warrant the amendment and refiling of the 2024 Q3 Filings. Shareholders and users of the Company’s financial statements should note that the restatement is not a result of any change to its operations, business or financial operating performance for the restated period. The Company does not expect that the restatement will result in any changes to the Company’s cash balance as of September 30, 2024, nor to the Company’s net change in cash flows for the nine months ended September 30, 2024. Management has revised the accounting treatment in its Annual Filings, which will be reflective of the corrective disclosure with respect to the restated 2024 Q3 Filings. Due to the error in the 2024 Q3 Filings, the 2024 Q3 Filings and accompanying earnings news release issued on November 28, 2024, should no longer be relied on.
About Cathedra Bitcoin Inc.
At time of publishing, the Company holds approximately 52.7 bitcoin worth approximately US
Cathedra Bitcoin Inc. develops and operates digital infrastructure assets across North America with the goal of maximizing its per-share bitcoin holdings. The Company hosts bitcoin mining clients across its portfolio of three data centers (30 megawatts total) in Tennessee and Kentucky and recently developed and sold a 60-megawatt data center in North Dakota, a joint venture in which Cathedra was a
For more information about Cathedra, visit cathedra.com or follow Company news on Twitter at @CathedraBitcoin or on Telegram at @CathedraBitcoin.
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Forward-Looking Statements
This news release contains certain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company, including statements and information regarding the timing for the filings of the 2024 Q3 Filings, statements with respect to: the satisfactory completion and the filing of the 2024 Q3 Filings, the potential that additional restatements of the financial statements will be required, and the impact on the Company’s reputation and customer relations are forward looking information. Additional forward-looking information contained in this news release includes but is not limited to the goal of maximizing its per-share bitcoin holdings. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, including assumptions regarding the Company’s ability to work effectively with its auditors and regulators, the timelines required to resolve the identified issues, and the ability to comply with applicable regulatory requirements. However, forward-looking information is subject to numerous risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated. The Company has also assumed that no significant events occur outside of its normal course of business.
Additionally, these forward-looking statements may be affected by risks and uncertainties in the business of Cathedra and general market conditions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect Cathedra’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Cathedra believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: the reliance of the Company on its auditors and management with respect to the Annual Filings and restated Q3 2024 Filings, the Company’s ability to address and avoid delays or additional findings during the restatement process; risks associated with regulatory reviews and investigations, including potential enforcement actions or penalties; the potential impact on investor confidence, market perception, and the Company’s reputation, and broader economic and industry conditions affecting the Company’s operations and financial performance, changes in the Company’s relationships, including with regulatory bodies, employees, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation and the costs associated with compliance; unanticipated costs; changes in market conditions impacting the average revenue per MWh; the risks and uncertainties associated with foreign markets; the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine Bitcoin is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; and the power purchase agreements and economics thereof may not be as advantageous as expected. Additionally, the forward-looking statements contained herein may be affected by risks and uncertainties in the business of Cathedra and general market conditions. For further information concerning these risks and uncertainties and other risks and uncertainties, please see the Company’s filings under the Company’s SEDAR+ profile on www.sedarplus.ca, including but not limited to the Company’s management information circular dated June 18, 2024 and the Company’s most recent interim and annual management discussion and analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended and such changes could be material, including factors that are currently unknown to or deemed immaterial by the Company. Readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249906
FAQ
What accounting errors led to Cathedra Bitcoin (CBTTF) restating its Q3-2024 financials?
Three main errors were identified: consolidation issues with the North Dakota data center joint venture, different judgments in lease arrangement accounting estimates, and misstatements in Kungsleden’s opening balances.
Will the CBTTF Q3-2024 restatement affect the company’s cash position?
No, the restatement is not expected to impact Cathedra’s cash balance as of September 30, 2024, or the net change in cash flows for the nine months ended September 30, 2024.
When will Cathedra Bitcoin (CBTTF) file its restated Q3-2024 financial statements?
Cathedra Bitcoin expects to file the restated Q3-2024 financial statements on or around April 30, 2025.
How does the Kungsleden acquisition affect CBTTF’s Q3-2024 restatement?
Errors in Kungsleden’s historical financial statements, following its acquisition on July 23, 2024, directly affected Cathedra’s Q3-2024 financial statements, necessitating the restatement.