• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Cathedra Bitcoin Shifts Strategy to Bitcoin Purchases

user avatar

by Giorgi Kostiuk

2 years ago

  1. Cathedra Bitcoin's New Strategy
  2. Reasons for the Strategic Shift
  3. Future Plans


    4. Canadian Bitcoin miner Cathedra Bitcoin announced a strategic shift, intending to focus on buying Bitcoin rather than mining it.

    Cathedra Bitcoin's New Strategy

    In a memo dated September 16, Cathedra Bitcoin announced that all capital allocation decisions will now be aimed at maximizing the firm's Bitcoin reserves per share. This is the most important metric for many of its largest shareholders. The company stated that this formalizes a policy they have always held in their minds but have not always strictly followed.

    Reasons for the Strategic Shift

    Cathedra stated that Bitcoin mining had not provided enough shareholder value. Nine of the ten largest Bitcoin miners by market cap now hold less Bitcoin per share than they did three years ago, the company claimed. Meanwhile, other companies have adopted an explicit policy of increasing Bitcoin per share, most notably MicroStrategy, and have been rewarded by equity markets.

    Future Plans

    Cathedra plans to develop data centers to create predictable cash flows that will be directed towards buying Bitcoin. The company also intends to continue mining and retain the Bitcoin it produces. Similar to MicroStrategy and Metaplanet, Cathedra will issue equity, debt options, or hybrid securities to buy more Bitcoin and may also borrow against its balance sheet assets. The recent merger with computing infrastructure firm Kungsleden is also expected to assist Cathedra in increasing Bitcoin per share. According to Bitcoin Treasuries data, the firm is the 45th largest corporate Bitcoin holder with 23 Bitcoins worth $2.5 million.

    Cathedra Bitcoin is confident in the long-term success of its strategy, stating that we are in the early stages of a multi-decade trend that will see Bitcoin emerge as a dominant global reserve asset. Founded in 2017 and headquartered in Vancouver, British Columbia, the company has a market capitalization of around $20 million, despite a 91% drop in share price since October 2021.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Bitcoin's 200-Week Moving Average Remains a Key Support Level

chest

Bitcoin's 200-week moving average is at 61,700, a crucial support level for traders, indicating potential recovery if maintained.

user avatarAyman Ben Youssef

Arthur Hayes Sells Off HYPE Token and NEAR Protocol Positions

chest

Arthur Hayes, cofounder of BitMEX, has exited his positions in HYPE and NEAR, citing macroeconomic factors.

user avatarTando Nkube

Coinbase Introduces Perpetual Futures for Pre-IPO Trading

chest

Coinbase has launched a new perpetual futures product for pre-IPO trading, starting with SpaceX, allowing users outside the US to trade 24/7 using USDC.

user avatarKofi Adjeman

Worldcoin's Short Overhang Could Lead to Price Surge

chest

Worldcoin (WLD) is experiencing a significant short overhang, which may lead to sharp price movements if market conditions change.

user avatarJesper Sørensen

Arthur Hayes Promotes Worldcoin as a Key Player in Upcoming AI IPOs

chest

Arthur Hayes promotes Worldcoin (WLD) as a key player in upcoming AI IPOs, suggesting it could see significant price increases due to its potential as an overlooked investment in the AI sector.

user avatarNguyen Van Long

House of Lords Urges Review of Stablecoin Regulations to Maintain UK Competitiveness

chest

The House of Lords Financial Services Regulation Committee has urged financial regulators to reconsider their stablecoin proposals, warning that the UK risks falling behind global leaders if regulations are not properly calibrated.

user avatarSatoshi Nakamura

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.