Cathedra Bitcoin is ceasing its seven-year BTC mining operation to acquire abundant Bitcoin on the open market like Microstrategy.
Over the past three years, Cathedra Bitcoin, a Canadian Bitcoin miner, has stated that mining has not generated sufficient shareholder value on a Bitcoin basis. Consequently, the company has implemented a change in strategy.
Cathedra Bitcoin Purses New Strategy
Cathedra’s new plan, as detailed in the “Bitcoin Treasury Strategy Memo” on Sept. 16, will prioritize the optimization of the company’s Bitcoin reserves on a per-share basis. This metric is considered the “most critical” by many of Cathedra’s leading shareholders.
“This is the formalization of a policy that we have always held loosely in our minds but have not always permitted to guide our decisions in a disciplined manner.” “
Cathedra Bitcoin stated that the processing of Bitcoin had not generated sufficient shareholder value on a Bitcoin basis. Cathedra asserted that nine of the ten largest Bitcoin miners by market capitalization currently possess fewer Bitcoin per share than they did three years ago. Additionally, Cathedra stated:
“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.”
Cathedra has announced that it will instead focus on developing data operating centers to produce “predictable cash flows” that can be used to purchase additional Bitcoin. The company will also retain the Bitcoin it generates from its current mining operations, indicating that mining will not be entirely abandoned.
Cathedra will issue equity, debt options, or hybrid securities to acquire additional Bitcoin, similar to Metaplanet and MicroStrategy. The company can borrow against a portion of its balance sheet assets.
Cathedra also expressed confidence that its recent merger with computing infrastructure firm Kungsleden in early March will position it well to increase Bitcoin per share.
According to Bitcoin Treasuries data, the company is the 45th largest corporate Bitcoin holder, as evidenced by its $2.5 million value of 23 Bitcoins.
Cathedra’s market capitalization on the TSX Venture Exchange in Canada is nearly $20 million.
Nevertheless, its share price has plummeted by 91% to $0.08 (0.059 Canadian dollars) since its zenith in late October 2021, when Bitcoin was rapidly approaching its previous high, according to data from Google Finance.
Cathedra’s statement indicates that the company intends to remain long on its Bitcoin strategy, asserting that we are currently in the “early innings of a multi-decade trend” that will result in Bitcoin becoming a “dominant global reserve asset.”
The organization was established in 2017 and is situated in Vancouver, British Columbia, on the western coast of Canada.
