• 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

CZ Zhao Issues Warning on Hardware Wallet Security Following Major Exploit

chest

CZ Zhao warns cryptocurrency owners about hardware wallet vulnerabilities following a major exploit that resulted in significant losses.

user avatarEmily Carter

Upbit Conducts Major Internal Wallet Reorganization of SHIB

chest

South Korean exchange Upbit has reorganized 864 billion SHIB across its internal wallet addresses as part of a standard internal rebalancing process aimed at managing liquidity and security.

user avatarTomas Novak

Avalanche Staking Value Reaches $20.477 Billion

chest

Avalanche's staking value has reached approximately $20.477 billion, indicating strong network participation.

user avatarMaya Lundqvist

Helicon Upgrade Activated on Fuji Testnet

chest

The Helicon upgrade has been activated on the Fuji testnet, marking a significant step in Avalanche's development.

user avatarKaterina Papadopoulou

Avalanche Awards Grant to YourGrails for Tokenization of Physical Trading Cards

chest

Avalanche's Team1 Accelerator awarded a $30,000 grant to YourGrails for tokenizing physical trading cards, supporting the growth of the real-world asset ecosystem.

user avatarLeo van der Veen

Aave Governance Considers Wind Down of Low-Use V3 Markets

chest

Aave governance is reviewing a proposal to wind down six low-adoption V3 markets and offboard dozens of reserves to reduce operational complexity.

user avatarLi Weicheng

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.