• 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

Jeff Park Draws Parallels Between Crypto and Early AI Development

chest

Jeff Park argues that the cryptocurrency industry is in a transitional phase similar to the early days of AI, where the potential is recognized by a few but not yet by the broader market.

user avatarSatoshi Nakamura

Crypto Analyst Defends Bitcoin's Four-Year Cycle Theory

chest

Crypto analyst Mags defends the validity of Bitcoin's four-year cycle theory, arguing it is still active despite claims from some experts that it has ended.

user avatarJesper Sørensen

XRP Faces Selling Pressure Below 140

chest

XRP struggles below the critical resistance level of 140 due to selling pressure and deteriorating liquidity conditions.

user avatarRajesh Kumar

Tether to Launch Stablecoin GELT in Partnership with Georgian Government

chest

Tether announced plans to issue a stablecoin called GELT in Georgia, supported by the government, to enhance the country's digital financial infrastructure.

user avatarLucas Weissmann

Surge in XRP Ledger Payment Counts Raises Questions

chest

A significant increase in XRP payments has been observed, prompting speculation about the reasons behind this rally.

user avatarFilippo Romano

Decline in Whale Activity on XRP Ledger Observed

chest

Recent reports indicate a significant drop in whale transactions on the XRP Ledger, suggesting a potential market compression phase.

user avatarEmily Carter

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.