Cathedra Bitcoin, a Canadian mining company, has announced a significant shift in its business strategy. After seven years of mining operations, the company is now prioritising the acquisition of Bitcoin from the open market.

This strategic shift mirrors the approach taken by industry giant MicroStrategy.Founded in 2017, Cathedra is headquartered in Vancouver, British Columbia.

Maximising Bitcoin Reserves

In a memo dated September 16, Cathedra outlined its plan to allocate capital strategically to maximise Bitcoin reserves per share. This metric has been identified as a key priority by the company’s major shareholders.

The Inefficiency of Mining

Cathedra acknowledged that its traditional mining operations had not yielded sufficient shareholder value on a Bitcoin basis. The company observed that many of the largest Bitcoin miners by market cap have seen their Bitcoin holdings per share decline over the past three years.

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Learning from MicroStrategy

Inspired by MicroStrategy’s success in accumulating Bitcoin, Cathedra intends to adopt a similar approach. By acquiring Bitcoin directly from the open market, the company aims to maximise its Bitcoin reserves and deliver value to shareholders.

A Comprehensive Approach

To achieve its goals, Cathedra plans to:

• Develop Data Operating Centers: Generating predictable cash flows to fund Bitcoin purchases.
• Retain Existing Bitcoin: Continue to hold Bitcoin produced from its mining operations.
• Issue Equity and Debt: Raise additional capital through equity, debt options, or hybrid securities.
• Leverage Balance Sheet Assets: Borrow against its balance sheet assets to acquire more Bitcoin.

A Significant Bitcoin Position

As of now, Cathedra holds 23 bitcoins, valued at approximately $2.5 million. This makes it the 45th largest corporate Bitcoin holder globally, according to Bitcoin Treasuries data.

The firm’s merger with Kungsleden is expected to provide it with additional resources and capabilities to expand its Bitcoin holdings and explore other digital asset opportunities.

Market Performance

Despite a significant decline in its share price from its peak in late October 2021, Cathedra remains committed to its Bitcoin strategy. The firm’s market cap on Canada’s TSX Venture Exchange currently stands at nearly $20 million.

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Long-Term Vision for Bitcoin

Cathedra’s statement suggests a long-term belief in Bitcoin’s potential. The company views Bitcoin as a dominant global reserve asset and believes that we are in the early stages of a multi-decade trend.

Cathedra’s decision to shift away from mining and focus on acquiring Bitcoin from the open market reflects a strategic shift in the company’s approach.

By prioritising Bitcoin reserves per share, Cathedra aims to deliver long-term value to its shareholders and position itself as a leading player in the Bitcoin market.

Stay tuned for updates on Cathedra’s Bitcoin strategy and its impact on the company’s performance.