According to Cointelegraph, Canadian Bitcoin miner Cathedra Bitcoin is pivoting from its seven-year mining operation to a new strategy focused on acquiring Bitcoin from the open market. This approach mirrors the strategy employed by MicroStrategy. In a memo dated Sept. 16, Cathedra outlined its plan to prioritize capital allocation decisions aimed at maximizing Bitcoin reserves per share, a metric deemed crucial by its major shareholders.
Cathedra acknowledged that mining Bitcoin had not delivered sufficient shareholder value on a Bitcoin basis. The company noted that nine of the ten largest Bitcoin miners by market cap now hold less Bitcoin per share than they did three years ago. In contrast, firms like MicroStrategy, which have adopted policies to increase Bitcoin per share, have been rewarded by equity markets.
To achieve its new objectives, Cathedra plans to develop data operating centers to generate predictable cash flows for purchasing more Bitcoin. The company will also retain the Bitcoin produced from its existing mining operations, indicating that it will not completely abandon mining. Additionally, Cathedra intends to issue equity, debt options, or hybrid securities to acquire more Bitcoin and may borrow against some of its balance sheet assets.
Cathedra expressed confidence that its recent merger with computing infrastructure firm Kungsleden will enhance its ability to increase Bitcoin on a per-share basis. According to Bitcoin Treasuries data, Cathedra currently holds 23 Bitcoin, valued at $2.5 million, making it the 45th largest corporate Bitcoin holder. The firm has a market cap of nearly $20 million on Canada’s TSX Venture Exchange. However, its share price has plummeted 91% since its peak in late October 2021, dropping to $0.08 (0.059 Canadian dollars), as per Google Finance data.
Cathedra's statement indicates a long-term commitment to its Bitcoin strategy, suggesting that the firm believes we are in the early stages of a multi-decade trend that will see Bitcoin become a dominant global reserve asset. Founded in 2017, Cathedra Bitcoin is headquartered in Vancouver, British Columbia.
