FameEX Hot Topics | BTC Miner Cathedra Shifts Focus to Bitcoin Accumulation Strategy

Cathedra Bitcoin Inc. has announced a strategic shift, transitioning from a focus on Bitcoin mining to prioritizing the growth of its Bitcoin holdings. The company aims to increase its shareholders' Bitcoin per share, adopting a strategy similar to Microstrategy, which has gained recognition for its Bitcoin acquisition approach.

This decision, revealed at block height 861,570, follows an internal review showing that Bitcoin mining has not been a reliable way to boost the company’s Bitcoin per share. Cathedra noted that nine of the ten largest publicly listed Bitcoin miners hold less Bitcoin per share today than they did three years ago, prompting the need for a new direction.

To address this, Cathedra plans to pivot to more predictable revenue streams, including developing and operating data centers. The profits generated from these operations will be used to acquire additional Bitcoin (BTC). The company also outlined other tactics, such as continuing limited proprietary mining and utilizing financial instruments like Bitcoin-linked derivatives, to grow its BTC per share.

Cathedra’s management believes this shift will better position the company to serve its shareholders, with current holdings standing at 43 Bitcoin, or 5 satoshis per share. This move comes as Bitcoin mining profits have stagnated, with daily hashprice earnings stuck at $42 per petahash per second (PH/s).

The company's new approach focuses on capitalizing on Bitcoin's long-term value as a global reserve asset. By reducing reliance on mining, Cathedra expects to improve financial performance and deliver better returns to shareholders. This strategy aligns with recent actions by Microstrategy, which announced a $700 million private offering of convertible senior notes to purchase more Bitcoin, following its acquisition of 18,300 BTC days earlier.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.