Key Takeaways
- Cathedra Bitcoin pivots from mining to Bitcoin acquisition.
- The company will use data center profits to buy Bitcoin.
- Cathedra holds 43 BTC, or 5 sats per share, currently.
Cathedra Bitcoin is pivoting from mining to acquiring Bitcoin through data center profits, citing unpredictable mining returns.
After seven years in the mining business, Canadian Bitcoin miner Cathedra Bitcoin (CBIT) is transitioning from mining to a strategy focused on acquiring Bitcoin.
Recent shift
The company plans to develop data centers to generate predictable cash flows, which will then be used to purchase Bitcoin.
The shift comes in response to volatile mining profits, with the company noting that most publicly listed Bitcoin miners now hold less Bitcoin per share compared to three years ago.
Cathedra will still maintain its mining operations but aims to maximize shareholder Bitcoin holdings through more stable cash flow sources. This new strategy includes issuing debt, developing assets from financing proceeds, and using derivatives linked to Bitcoin.
In a memo, the company stated:
Going forward, we will make all capital allocation decisions with the intention of maximizing our shareholders’ per-share bitcoin holdings.
Currently, Cathedra holds 43 BTC, equal to 5 satoshis per share, and intends to report progress on this strategy in future quarters.
