Bitcoin

Canadian Bitcoin miner Cathedra Bitcoin is shifting its focus after seven years of mining, adopting a new strategy: acquiring as much Bitcoin as possible on the open market, following the approach of MicroStrategy.
In a Sept. 16 “Bitcoin Treasury Strategy Memo,” Cathedra <a data-ct-non-breakable="null" href="https://www.cathedra.com/_resources/pdfs/Cathedra-Bitcoin-Inc-Bitcoin-Treasury-Strategy.pdf?v=091606" rel="null" target="null" text="null" title="null">explained</a> its new plan will see “all capital allocation decisions” now geared toward maximizing the firm’s Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) reserves on a per share basis — the “most important” metric for many of its largest shareholders.&nbsp;
“This represents the formalization of a policy we have always held loosely in our minds but have not always allowed to guide our decisions in a disciplined way.”&nbsp;
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 Source: <a data-ct-non-breakable="null" href="https://x.com/CathedraBitcoin/status/1835757448130372056" rel="null" target="null" text="null" title="https://x.com/CathedraBitcoin/status/1835757448130372056">Cathedra Bitcoin </a>
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Cathedra said mining Bitcoin had not provided enough shareholder value on a Bitcoin basis. Nine of the 10 largest Bitcoin miners by market cap now hold less Bitcoin per share than they did three years ago, Cathedra claimed, adding:&nbsp;
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 “Meanwhile, other listed companies have adopted an explicit policy of increasing bitcoin per share, most notably MicroStrategy (NASDAQ: MSTR), and have been rewarded by equity markets.”
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Cathedra says it will instead move to <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/bitcoin-miners-as-energy-buyers-explained" rel="null" target="null" text="null" title="null">develop data operating centers</a> to generate “predictable cash flows” to buy more Bitcoin and will retain the Bitcoin it produces from its existing mining operations — it said, suggesting the firm <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/how-long-does-it-take-to-mine-1-bitcoin" rel="null" target="null" text="null" title="null">won’t be scrapping mining</a> entirely.
Similar to firms like MicroStrategy and Metaplanet, Cathedra will <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/micro-strategy-announces-third-debt-offering-2024-plans-raise-700-m" rel="null" target="null" text="null" title="null">issue equity, debt options,</a> or hybrid securities to buy more Bitcoin. The firm may also borrow against some of its balance sheet assets.
Cathedra also expressed confidence its recent early March <a data-ct-non-breakable="null" href="https://www.businesswire.com/news/home/20240307925090/en/Cathedra-Bitcoin-and-Kungsleden-Inc.-Announce-Merger-to-Create-an-Infrastructure-Company-for-the-Digital-Economy" rel="null" target="null" text="null" title="null">merger</a> with computing infrastructure firm Kungsleden will position it well in increasing Bitcoin on a per-share basis.
Bitcoin Treasuries data <a data-ct-non-breakable="null" href="https://bitcointreasuries.net/" rel="nofollow noopener" target="_blank" text="null" title="https://bitcointreasuries.net/">shows</a> that the firm currently holds 23 Bitcoin, worth $2.5 million, making it the 45th largest corporate Bitcoin holder.
Related:<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/metaplanet-semler-scientific-praise-microstrategy-bitcoin-strategy" rel="null" target="null" text="null" title="null"> Metaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs say</a>
Cathedra boasts a near-$20 million market cap on Canada’s TSX Venture Exchange. 
However, its share price has tanked 91% since its peak in late October 2021 — when Bitcoin was fast approaching <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-sentiment-high-point-btc-record-high" rel="null" target="null" text="null" title="null">its previous high</a> — to $0.08 (0.059 Canadian dollars), Google Finance <a data-ct-non-breakable="null" href="https://www.google.com/finance/quote/CBIT:CVE" rel="null" target="null" text="null" title="null">data</a> shows.
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 <img alt="Cathedra Bitcoin cools off mining to tap MicroStrategy playbook" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191fd70-8691-7067-92a0-5c08dd23c453">
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 Cathedra Bitcoin’s change in share price so far in 2024. Source: Google Finance
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Cathedra’s statement suggests the firm plans to be long on its Bitcoin strategy, stating that we’re in “the early innings of a multi-decade trend” that will see Bitcoin emerge as a “dominant global reserve asset.”
The firm was founded in 2017 and is headquartered in Vancouver, British Columbia, on the west side of Canada.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-stacks-price-predictions-cryptocurrency-daan-crypto-trades-hall-of-flame/" rel="null" target="null" text="null" title="null"> If Bitcoin doubles, Stacks will 4x in 2025: Daan Crypto Trades, X Hall of Flame</a>

Cathedra Bitcoin cools off mining to tap MicroStrategy playbook

Cointelegraph

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