According to TechFlow, on September 17, Cointelegraph reported that Canadian Bitcoin mining company Cathedra Bitcoin announced that it would slow down its seven-year mining business and adopt a new strategy: to follow MicroStrategy and buy a large number of Bitcoins in the open market. The company said that Bitcoin mining has failed to create enough value for shareholders in the past three years, prompting it to change its strategy. The new plan will shift all capital allocation decisions to maximize the company's Bitcoin reserves per share. Cathedra believes that we are in the "early stages of a trend that will last for decades" and that Bitcoin will become "the world's dominant reserve asset."
Cathedra plans to develop a data operations center to generate "predictable cash flow" to purchase more Bitcoin and retain Bitcoin generated by existing mining operations. The company may issue equity, debt options or hybrid securities to purchase Bitcoin, and may also pledge part of its assets for borrowing. Currently, Cathedra holds 23 Bitcoins, worth about $2.5 million, ranking 45th in the ranking of corporate Bitcoin holdings. The company is listed on the TSX Venture Exchange in Canada and has a market capitalization of nearly $20 million. However, since Bitcoin approached its all-time high in late October 2021, its stock price has fallen 91% to $0.08 (0.059 CAD).
