Cathedra Bitcoin Shifts Strategy to Bitcoin Purchases

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  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.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Google Cloud's New Service Enhances Key Management Security

Google Cloud's new Multiparty Compute service aims to mitigate risks related to key management in digital asset custody by splitting signing authority among independent participants.

user avatarKofi Adjeman

Google Cloud Launches New Service for Digital Asset Custody

Google Cloud has launched a new Multiparty Compute service to enhance institutional digital asset custody, addressing custody risks and potentially lowering barriers for firms in the digital asset market.

user avatarNguyen Van Long

ACI Worldwide and Circle Launch USDC Settlement Pilot in Colombia

ACI Worldwide and Circle announced a collaboration to demonstrate USDC settlement integration into existing bank payment systems.

user avatarSatoshi Nakamura

Binance Wallets Drained in Major Security Breach

Wallets linked to Binance were drained of at least $55 billion, raising concerns about the security of decentralized exchanges.

user avatarJesper Sørensen

Decentralized Exchanges Facilitate Fund Swaps in Binance Hack

Decentralized exchanges like Uniswap and Aave are being used to swap frozen stablecoins for Ethereum following the Binance wallet draining incident, complicating recovery efforts.

user avatarRajesh Kumar

Bron Joins Hashgraph Association's Global Membership Program

Selfcustody platform Bron has joined the Hashgraph Association's Global Membership Program to enhance its connection with the Hedera ecosystem.

user avatarLucas Weissmann

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.