Originally published on: September 17, 2024
Canadian Bitcoin mining company, Cathedra Bitcoin, is pivoting its focus after a seven-year tenure in the mining industry. The company is now setting its sights on amassing Bitcoin from the open market, taking a page from the playbook of industry titan, MicroStrategy.
Cathedra Bitcoin’s New Bitcoin Acquisition Strategy
In a recent “Bitcoin Treasury Strategy Memo” released on September 16, Cathedra Bitcoin unveiled its new game plan. The company outlined that all capital decisions would now be aimed at maximizing Bitcoin reserves on a per-share basis—a pivotal metric for its major shareholders.
Shifting Priorities: From Mining to Bitcoin Acquisition
Cathedra Bitcoin expressed that traditional Bitcoin mining was not delivering significant shareholder value in terms of Bitcoin reserves. According to the company, many of the top 10 Bitcoin miners have witnessed a decline in Bitcoin holdings per share over the past three years.
Taking a Cue from Market Leaders
Like MicroStrategy and Metaplanet, Cathedra Bitcoin intends to harness various financial tools such as issuing equity, debt options, or hybrid securities to bolster its Bitcoin holdings. Additionally, the company may leverage its balance sheet assets to secure loans for strategic acquisitions.
Balancing Mining Operations with Bitcoin Acquisition
While Cathedra Bitcoin plans to focus on establishing data operating centers to ensure consistent cash flows for acquiring Bitcoin, the company remains committed to retaining the Bitcoin generated from its existing mining operations.
Strategic Moves and Market Position
Cathedra Bitcoin’s recent merger with computing infrastructure firm, Kungsleden in early March, is anticipated to fortify its position in the quest to enhance Bitcoin reserves on a per-share basis. Presently, the company holds 23 Bitcoin valued at $2.5 million, securing its position among the top 50 corporate Bitcoin holders.
Market Performance and Long-Term Vision
Despite boasting a near-$20 million market capitalization on Canada’s TSX Venture Exchange, Cathedra Bitcoin has witnessed a significant decline in its share price, plummeting by 91% from its peak in late October 2021. The company’s resolute commitment to its Bitcoin acquisition strategy signifies its anticipation of a sustained upward trajectory in the evolving landscape of Bitcoin adoption.
Embracing the Future of Bitcoin
Cathedra Bitcoin’s resolute stance on Bitcoin underscores its belief in the long-term potential of the leading cryptocurrency. Positioned in Vancouver, British Columbia, the company envisions Bitcoin evolving into a dominant global reserve asset, marking the beginning of a transformative multi-decade trend.
In a rapidly evolving Bitcoin landscape, Cathedra Bitcoin remains steadfast in its commitment to fortifying its Bitcoin reserves and positioning itself as a key player in the dynamic cryptocurrency market.
