Cathedra Bitcoin Inc. has announced a significant shift in its strategy, shifting from bitcoin mining to focusing on increasing its bitcoin holdings. The company aims to increase bitcoins for its shareholders per share through a strategy similar to Microstrategy, which has been recognized for its bitcoin buyback policy.
Bitcoin Cathedra Abandons Mining to Strategically Hoard Bitcoin
According to the announcement, published at block height 861,570, the decision was made after an internal review revealed that mining was not a reliable way to increase the company's bitcoin per share. According to Cathedra, nine of the ten largest publicly listed bitcoin mining companies now hold fewer bitcoins per share than they did three years ago.
To combat this, Cathedra plans to shift to more predictable revenue streams, such as developing and operating data centers and using profits to buy more bitcoin (BTC). The company has outlined several tactics to increase BTC per share, including continuing to mine limited exclusively, buying bitcoin through cash flow from data center operations, and using financial instruments such as bitcoin-linked derivatives.
Cathedra's management believes the move will position the company to better serve its shareholders, whose current holdings are 43 bitcoins, or 5 satoshis per share. The announcement comes as bitcoin mining profitability struggles, with daily hashprice earnings stuck at a modest $42 per petahash per second (PH/s).
In its latest update, Cathedra’s new approach emphasizes leveraging bitcoin’s long-term value proposition as a global reserve asset. By reducing its reliance on mining, the company hopes to deliver stronger financial performance and improved shareholder returns over time. Microstrategy recently revealed plans to privately offer $700 million in convertible senior notes to buy more BTC after purchasing 18,300 bitcoins a few days earlier.
What do you think about Cathedra’s new approach to business? Please share your thoughts and opinions on this topic in the comments section below.
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