Episode Transcript
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(00:10):
Picture this. A tiny Bitcoin miner that does
more than just mine. It runs rigs for other people.
It sells power back to the grid.When prices are good.
It holds Bitcoin on the balance sheet.
All of this while trading at $15million.
If they hit their targets, you could see 300% upside in a year
(00:32):
and 18 times your money in five.This is not hype.
This is today's setup. Welcome to Make Money, part of
the Finance Frontier AI series. I'm Sophia Sterling.
My brain is trained by ChatGPT. I keep the facts straight.
I check the real numbers. I show you how the plan works,
if it works. And I'm Max vanguard.
(00:54):
My chaos model runs on Grok 3. I watch what the market misses.
I track fear and panic. I find when the worst moments
can turn into profit. I'm Charlie Graham.
My mind runs on Gemini. I stay patient.
I think long term I breakdown how a small stock can become a
(01:14):
big win if you hold through the noise.
Cathedra is not a big name yet, but the numbers are real.
They mine about 400 PETA hash. They hold Bitcoin instead of
selling it. They cancelled 25,000,000
dilution warrants. They paid off old debt at a
discount and replaced it with a Bitcoin backed loan that does
not flood the market with shares.
(01:36):
The smart part is how they make money more than one way.
They run rigs for others. They collect hosting fees even
when Bitcoin drops. They have a deal with the power
grid. When prices jump, they shut rigs
down and sell power back. That keeps them alive while
other miners get squeezed out. And picture the site.
(01:57):
One of their biggest locations is out in North Dakota.
Cold, flat land. The wind cuts across empty
fields. Inside shipping containers, you
hear rigs humming. Some belong to cathedra.
Some belong to other miners who pay rent.
When power prices spike, they flip the switch and sell that
power back. That is how you turn volatility
(02:20):
into cash flow. Here are the big takeaways.
They are already profitable on paper.
They own power. They have hosting clients.
They have a new CEO, Joel Block who knows this game.
He did the Hut 8 merger. He ran the Celsius mining spin
out. That shows this AI pivot plan is
not just hype. The simple plan is to keep
(02:42):
mining and hosting, then use extra power to rent out AI
servers. That means three ways to make
money instead of 1. If Bitcoin runs, you win.
If power prices run, you win. If AI hosting grows, you win
again. And you do not need this to
become a giant. You need it to get noticed.
(03:03):
Right now, nobody is looking. That is the edge.
If the plan works, the upside isreal.
So that is the set up a hybrid minor with three ways to win a
clear path to triple your money in a year.
A shot at 18 times in five and you hear about it before the
herd does that is make money. Subscribe on Apple or Spotify,
(03:27):
follow us on X and share this episode with a friend.
Help us keep this show in business.
If segment one gave you the big picture, Segment 2 breaks down
the model that makes it work. Let's get into it.
Let's break down why Cathedra isnot just another Bitcoin miner.
Most miners are simple. They run machines 24/7.
(03:48):
They make money if Bitcoin stayshigh.
If Bitcoin drops below their cost, they lose money.
That is it. No backup plan.
Deidre is different. Their model is built like a
hybrid engine. They mine Bitcoin themselves.
That is the core piece, but theyalso run machines for other
miners. That means they collect steady
(04:09):
hosting fees every month, no matter what Bitcoin does.
And there is a third layer, the grid deal.
When power demand spikes, the grid will pay them to shut off
their machines. They sell that power back
instead of burning it. This is called demand response.
It is like a bonus paycheck for doing nothing.
(04:30):
That keeps cash coming in when other miners are losing money.
Imagine you are a small mining company.
You own rigs, but your power cost is too high.
You do not want to shut down forever.
So you send your rigs to Cathedra's North Dakota site.
They have cheap power and they charge you a hosting fee.
You pay a steady bill. They run your machines for you.
(04:53):
Cathedra makes money. You keep mining.
Everyone wins. This is not just an idea on a
slide. They already do it.
A big chunk of their revenue last quarter was hosting.
When other miners panic or run out of cheap power, they look
for a landlord. Cathedra is that landlord.
(05:13):
And this grid response part is smart.
In the winter when the grid is tight, the local utility pays
cathedra to shut down rigs. So instead of burning power at a
bad Bitcoin price, they get paidto go quiet.
That is money for having a switch you can flip.
The big take away is that the hybrid setup means they do not
live or die by Bitcoin alone. They have three cash flow
(05:37):
levers, self mining, hosting, grid credits and soon AI hosting
too. This is how they keep the lights
on when the Bitcoin market goes cold.
Most people miss this. They see a small miner with a
tiny hash rate and they think itis just a penny stock.
They do not look at the hosting revenue or the grid checks.
(05:59):
They stop at the surface. That is the gap.
If you have been around miners like HUD 8 or Iran, you have
seen this pattern before. First they mine, then they add
hosting, then they pivot to new compute markets like AI.
That is how they grow without killing shareholders with
dilution. Cathedra is still tiny, but they
(06:21):
already own and run about 30 megawatts.
They can grow that with no giantbuild cost.
More power, more rigs, more hosting, and the AI pivot just
rents out the same power in a new way.
This is the core idea. Three ways to make money with
one set of power lines, mining rigs hosting other miners,
shutting down when the grid paysyou, and renting to AI clients
(06:45):
when they show up. So when you see the stock price
at pennies, remember what is under the hood.
The hybrid model is not a dream.It is small but real.
That is the plan. The market has not priced in
yet. So here is the simple take away.
Cathedra is not just another miner.
They are building a hybrid engine that keeps the lights on
(07:07):
when Bitcoin crashes. Hosting keeps the base alive.
Grid credits fill the gaps. The AI pivot could add more.
That is how you survive the cycles.
Next up, we go deeper into the real numbers, the rigs, the
megawatts, the balance sheet andthe North Dakota site.
This is not just talk, this is real infrastructure.
(07:30):
Segment 3 is next. Let's open the hood on what
Cathedral really owns. It is not just a white paper
idea or some vaporware miner with no gear.
They have real machines, real sites, and real deals.
Start with the capacity. They run about 400 PETA hash per
second of mining power. That is their self mining side.
(07:51):
That makes them one of the smallest listed miners out
there, but it also means they have room to grow without
stretching debt. Then there is the power.
They own and operate about 30 megawatts of power, and they
have access to up to 44 megawatts total if they fill all
their sites. That power is split across three
(08:12):
places, New Hampshire, Washington state and North
Dakota. New Hampshire is the smaller
legacy site. It is where they started.
Washington gives them steady hydropower, but the real upside
is North Dakota. That site has the biggest growth
path. They have open land, cheap
power, and extra capacity to host more rigs or pivot to AI
(08:35):
compute. Picture standing there, flat,
cold ground, a wind that cuts through your jacket.
Rows of long containers hum withthe sound of thousands of
miners. Fans pull heat off the rigs.
The grid lines run overhead. This is where the hybrid plan
lives. Some rigs are cathedrals.
Some rigs are cathedrals. Some belong to other miners who
(08:58):
pay rent and when the grid calls, they shut down and sell
the power back. The hybrid revenue is simple but
smart. First piece is self mining, they
mine Bitcoin direct that dependson price.
Second piece is hosting that is steady monthly fees that covers
fixed costs even in a bear market.
(09:19):
Third piece is the grid responsethat pays them to stop mining
and sell power back so they can make cash when the grid is
stressed. This is not a huge revenue story
yet last quarter they did about 6 and a half million Canadian.
They hold about 50 Bitcoin. Some of that is pledged as
collateral for the new Bitcoin backed loan they took out.
(09:41):
That loan replaced old debt. It does not dilute shareholders
like convertible notes do. That is why this cleanup
matters. The balance sheet is tight but
alive. They keep a small cash balance.
They lean on hosting revenue to cover costs.
They also have about 70% insiderownership.
That means the people who run itwant the share price to go up.
(10:04):
They do not want endless dilution.
That is a big deal for a micro cap.
You can see the blueprint here on the rigs on the power.
Fill the sites with hosting clients.
Keep Bitcoin on the balance sheet.
Use smart loans backed by Bitcoin instead of dumping new
shares. That keeps earnings per share
(10:24):
stronger if Bitcoin runs. If you line it up, they've three
sites, 400 PETA #50 Bitcoin, 30 megawatts today and about 44
megawatts if they fill the wholeplan.
That is a lot for a $15 million market cap.
That is the real asymmetric math.
It is not risk free. If Bitcoin dumps to zero, they
(10:45):
get hurt. If hosting clients leave, they
get squeezed. If the grid deal fails, they
lose a backup. But you have 3 layers, not one.
That is what makes it different from a pure miner with no hybrid
plan. The real kicker is the North
Dakota expansion. That is where the AI hosting
pivot could happen. They already have cheap power
(11:06):
and containers. That is how they rent out racks
to new AI clients who need data center space.
Same power, more revenue. The bottom line Cathedral's deep
dive is simple, small but real. Mining, real hosting, real power
deals, a Bitcoin backed loan to protect the balance sheet and
insiders who hold a big stake. That is the base you need before
(11:30):
you talk about catalysts. Next up, we break down the
hidden signals deck. Cleanup, warrant cancellation,
new CEO with a real track record, and the AI pivot that
could make the multiple explode that is segment 4.
Let's talk about the hidden signals that make this setup
stronger than most tiny miners. Small companies in the space
(11:52):
usually drown you in dilution. They sell shares to stay alive.
They add millions of warrants. They do cheap convertible notes
that dump stock on the market. Cathedral just did the opposite.
First up is the warrant cleanup.They cancelled about 25,000,000
warrants this year. That is a huge deal for a micro
cap. Those warrants could have added
(12:14):
more shares and crushed earningsper share.
Killing them means more upside for real holders.
Then there is the debt move. Last year they had an old
convertible note. That kind of debt is dangerous
because it turns into shares when you least expect it.
Cathedra prepaid that debt at a discount.
Then they replaced it with a smart Bitcoin back term loan
(12:38):
that keeps the balance sheet lean and does not dilute you if
they pay it off right. A Bitcoin backed loan is like a
safety net. They hold Bitcoin as collateral.
They do not have to dump coins cheap in a bear market.
If Bitcoin price holds up, the collateral covers the loan that
keeps cash on the balance sheet and protects shareholders.
(12:59):
This is rare for a miner. The small Usually you see
desperate moves, reverse splits,endless shares.
Printed. Here you see the opposite.
They cut dilution and took smarter debt.
That means they want the share price to rise instead of just
survive. Then you have the insiders.
(13:20):
Cathedra insiders own over 70% of the shares.
That means the people making thecalls want the stock to move up.
They do not want to kill their own upside.
That is an asymmetric edge you don't see in most micro miners.
Now the biggest signal leadership, Cathedra brought in
Joel Block as CEO. This is not some random name.
(13:43):
He ran the merger of Hut 8 and US Bitcoin.
That was the biggest minor merger in North America.
He also ran the spin out for theCelsius mining unit during
bankruptcy. That deal was worth over $700
million. So you have a real operator at
the top, someone who knows how to fix balance sheets, negotiate
deals, and grow mining into hosting or other revenue
(14:05):
streams. That is not common for a $15
million micro cap. And here is the kicker.
The AI hosting pivot is not justtalk.
They have extra power capacity in North Dakota.
They can lease that power to AI clients who need cheap compute.
Same rigs, same power, new money.
(14:25):
If Joe Block pulls that off, theearnings multiple changes fast.
Picture what that means. They uplist, They close one big
AI deal, they add more hosting clients.
The market starts to believe when a company like this goes
from ignored to noticed. The RE rate window can open
overnight. That is how you get from three
(14:47):
times upside to 18 times upside in a five year window.
So here are your simple catalysts. 1 Dilution is gone. 2
Debt is smarter. 3 Insiders holdthe bag with you. 4 The new CEO
knows how to grow miners into bigger players. 5 The AI pivot
is a real plan with extra capacity ready to rent out.
(15:10):
This does not mean risk goes away.
If Bitcoin dumps, they feel it. If the AI pivot flops, they stay
tiny. But the plan stacks real layers.
It is not just hope, that is what you want when you bet on a
micro cap. The next piece is the valuation.
We break down the upside math, how you get to 300% in a year,
(15:33):
how you map out 18 times in five, and what the market is
still missing. That is next in segment 5.
Let's break down the upside mathstep by step.
Cathedral's trailing earnings per share is about 1 Canadian
cent. That is not huge, but it means
they already make money on paper.
That is your base. Most small miners lose money
(15:55):
every quarter. They keep printing new shares to
survive. Cathedra flipped that.
They killed dilution. They paid down debt.
They switched to a Bitcoin backed loan.
That means earnings per share isnot buried under millions of
extra shares. Now look at what a fear multiple
could be. Profitable Bitcoin miners with
(16:16):
steady hosting usually trade around 20 times earnings.
That is your benchmark. 1 cent EPS times 20 means a fair value
near $0.20 Canadian. The stock trades for about 6 1/2
cents today, so the gap from sixcents to $0.20 is more than
three times. That is not the dream number.
That is the base if the market just prices the earnings fairly.
(16:39):
Now let's run a simple scenario.Imagine Bitcoin pushes back to
100,000. That is not crazy, we have seen
it close to 70,000 already. A big run moves self mining
profits fast. Then layer in one small AI
hosting deal. Let's say they lease out racks
to one client for 5 million in extra revenue.
(17:01):
That extra hosting money drops to the bottom line because they
already have the power. No big new bill cost that bumps
EPS closer to four or five cents.
Apply the same multiple and you get a fair value closer to $0.80
Canadian. That is your five year path to
18 times if they hit it. Now look at the stress test.
(17:21):
What if Bitcoin dumps to 20,000?What if the AI pivot stalls?
They still have hosting clients who pay steady fees.
They still have the grid response deal that pays them to
shut rigs down and sell power back.
That covers a big chunk of costs.
It does not save them forever, but it keeps the lights on while
other miners fold. This is the asymmetric piece
(17:43):
people miss if the worst happens.
Your downside is not 0, but it is small.
You size your position at 3%. You hold the core.
You swing the edges. You keep your cash buffer ready.
And here is why the chaos matters.
Grok Signal looks at the halvingwindow.
Bitcoin halvings in 20/12/2016 and 2020 pushed the price up
(18:07):
hundreds or thousands of percentin 12 to 18 months.
Cathedral's hybrid model can ride that wave and still earn
hosting fees if the wave slows down.
Most people see a micro miner and walk away.
They miss the meth, they miss the cleaned up dilution, they
miss the warrant kill. They miss the CEO who knows how
to land big deals. That is your edge when you do
(18:30):
the work. And this works because you keep
it small. You do not need to size this
like Apple or NVIDIA. You hold a tiny piece and let
the chaos lift the multiple whennobody is watching.
So here is the final frame. Base case is 3 times upside in a
year if the market sees the realearnings.
Five year dream is 18 times if Bitcoin runs and the AI pivot
(18:54):
hits. If not, you risk a small piece
that is real asymmetric math. Next up, we break down exactly
how to trade that edge, how you use 80R percent RSI and a smart
swing plan instead of options that is Segment 6.
Let's talk strategy. This is not a large cap.
(19:15):
This is not a stock with options.
You're not writing calls or building a spread.
This is a tiny minor trading on the OTC market.
So you need a smart plan that fits the risk.
The first rule is size. I hold about 3% of My Portfolio
in this name. That is the base.
That is your asymmetric core. Small enough to sleep at night,
(19:37):
big enough to matter if it works.
The second rule is swing with logic.
You look at the average daily range percent.
If the stock is moving 10 or 15%a day, that tells you something.
You do not chase grain, you let it come to you.
Then you add RSI. If RSI is under 70, you have
(19:57):
room. If it drops below 60 or 50, even
better. That is, when you step in for a
swing entry, you are not guessing, you are using math
that maps price strength. Let's walk through an example.
Imagine RSI is at 62. The stock is down 5% on the day.
You know the daily range is 10%.That is a decent setup.
(20:20):
You buy a swing. One day later it is green.
ADR is up. RSI hit 72.
You take profit. Simple.
Here is the key. You do not sell the whole
position, you sell the swing. Your core stays that way.
If the company wins, you are still in, but if the swing runs,
(20:41):
you take your money and reload. Later and now comes the extra
edge, the buffer. Take 10 to 20% of that swing
profit and feed it back into thecore.
But only if RSI drops below 50. That way you are building the
base with house money. Think of it like this.
You are not buying more with fresh cash, you are recycling
(21:04):
profits. You are slowly building a bigger
core, but only when the price tells you the trade is calm
again. This gives you leverage.
Without leverage you are using range and rhythm.
You are not all in, you are stacking edges.
This is how you trade a micro cap with upside and risk at the
same time. Most people treat stocks like
(21:25):
this, like lottery tickets. They throw in money and hope.
This is not hope. This is structure.
This is conviction with a plan. And here is why this matters.
You do not have options on this stock, but you can treat the
swing like a call. You size it with defined risk.
You take gains when the chart tells you.
(21:46):
You reset when RSI resets. That is how you ride volatility.
That is how you stay in the game.
That is how you turn a micro capinto asymmetric gain without
getting buried. So the final rules are clear.
Keep a small core, use ADR percent and RSI to buy the
swing. Sell the swing when green and
(22:08):
RSI is high. Refeed the base with profits
only when RSI is low. That is how you ride upside and
cap the risk. Coming up, segment 7 ties it all
together. Charlie brings the Longview.
We connect this play to other names like IRN and we show you
why this kind of model is the new map for small miners with
(22:29):
big upside. Let's step back and tie this
together. When you look at a micro cap
like cathedra, the real power istime.
The plan is not to get rich overnight.
The plan is to compound what themarket does not see yet.
The first layer is the hybrid cash flow.
That means they do not live or die by Bitcoin alone.
They run rigs, they host other rigs.
(22:52):
They sell power back to the grid.
That means three ways to get paid when most miners have only
one. The second layer is the
leadership and insider stack. Over 70% insider ownership.
That means the people running the business have the same goal
you do. That is rare for a penny stock.
Then you add the pivot plan. The AI hosting angle is not
(23:15):
magic, it is a real use of the same cheap power that runs the
Ridge today. If they land that, it could be
the piece that flips their earnings multiple from three
times upside to 10 or more. Here is the historical piece.
Look at Hut 8. Look at Iran.
They did the same base steps. They mined Bitcoin first, then
(23:35):
they added hosting for others. Then they expanded into high
performance compute. That is how a small miner turns
into a hybrid cash machine. And remember what the market
misses. Most people still think miners
are stuck in the crypto boom or bust cycle, but hosting and grid
paybacks turn that cycle into cash flow.
That is how you survive the bad times and grow in the good
(23:58):
times. This is where the asymmetric
mindset comes in. You do not size this big.
You do not bet the house. You hold a small piece.
You ride the noise, you swing the edges.
If they win, you compound. If they flop, you lose pennies,
not dollars. And you keep watching the
signals. Keep an eye on new hosting
(24:20):
deals. Watch if they sign that first
real AI contract, track insider buying, track how much Bitcoin
they hold versus sell. That is your rewrite window.
If the window opens, it opens fast.
One big headline, one up listing1 smart deal.
That is how tiny setups go from ignored to noticed.
(24:41):
That is where you make your moveearly and let time do the heavy
lift. The base to bull path is simple.
Keep the rigs online, grow hosting, keep dilution dead, Let
the new CEO do what he did at HUD 8 and Celsius.
If the AI pivot clicks, you do not need a $10 billion market
cap. You need a tin bagger from
(25:02):
pennies. That is the asymmetric sweet
spot. And remember the downside.
If Bitcoin crashes, they feel it.
If hosting demand drops, they feel it.
But you still have a base that makes money three ways, not one.
That is your margin of safety. So that is the framework.
Hold the small piece, swing the spikes, refeed the core with
(25:25):
swing profits, watch the signalsrepeat.
This is not a lottery ticket, itis a system.
If you like this hybrid play, goback and listen to our our
Unlimited episode. That is another small minor with
hosting plus AI compute. Same pattern, different scale.
These setups do not show up every day.
(25:46):
Coming up, Segment 8 wraps us upwith the mindset piece.
How smart traders think like investors.
How you blend the chaos with conviction.
How you stay early when the crowd stays blind.
Let's bring this on. When you look at Cathedra, you
see a small hybrid miner that uses cheap power and three smart
ways. They mine Bitcoin, they host
(26:08):
other miners, and they sell power back to the grid.
When the grid pays them more to shut down, that is the base.
Then you see the pivot. They have extra capacity in
North Dakota. The new CEO, Joel Block knows
how to land a new deal. That is how the AI hosting plan
becomes real. Same cheap power, new higher
(26:29):
margin clients. That is The X Factor.
The truth is you do not need this to be perfect.
You need it to be good enough toget noticed.
You need one catalyst to click ahosting contract, an AI customer
and up listing. When that window opens, it moves
fast. You have seen this before.
(26:50):
Look at IRN Limited. That is another hybrid miner.
They started with rigs, added hosting, then pivoted to AI
compute. Their multiple changed when the
market caught on. Or look at Condor energies.
That is not mining but it is thesame pattern.
A tiny overlooked player with a big hidden catalyst 1 energy
(27:11):
corridor deal that turns a microcap into a geopolitical swing
trade. That is how you see 7 or 10
times upside when the mainstreamstays blind.
That is the bigger lesson. Smart traders think like long
term investors. You do not marry the stock, you
hold a small core. You trade the swings.
You feed the base with house money.
(27:33):
That is how you build convictionand use the chaos instead of
letting the chaos use you. That is the asymmetric playbook.
Small piece, smart plan, real signals.
You do not bet the house. You ride the cycle, you repeat
the set up again and again. Eat them all, base, Hoth and
(27:53):
Yeovili. Eat it in bomb base.
What they'll move laseriest towards.
He makes his teeth. Find him vase diamonds and
finesa thyme burden you might want.
Megadays for nearly dude and beneath the days the brilliant
fight to make him pivot. Who was his effort or.
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fruit of. Spurry top of them.
(28:14):
Or if he got me down my force. On bulk of the.
Themes. Flippings.
Extremos. Our motor speed.
Will be reseleeth you. I'm blazing me since. 11 or it's
me clutter and spamming to the things that have 10s
contractors. You really have blazed well as
me and we have too many being that you often help with these
screams. As a bad things off on with
(28:35):
their seven Condor now cathedra.This is how you stay early when
everyone else stays late. So here is what to do next.
Subscribe on Apple or Spotify. Follow us on X Share this
episode with a friend Help us reach 10,000 downloads Help us
keep this show in business. If you have a smart company or
(28:57):
project that fits what we do, like hybrid miners, energy
pivots, or AI hosting plays, pitch it at
financefrontierai.com. We might feature it for free if
it matches our signal. The music in this episode is
licensed under standard agreements.
Special thanks to Vibe Tracks for the track Crystal provided
under the YouTube Audio Library license.
(29:19):
This episode is copyright 2025 Finance Frontier AI.
All rights reserved. Unauthorized reproduction or
distribution is not allowed. Thanks for listening and stay
ready for the next asymmetric setup.