FameEX Hot Topics | BTC Miner Cathedra Refocuses on Bitcoin Accumulation Strategy

Cathedra Bitcoin Inc. has announced a strategic pivot, shifting its focus from Bitcoin mining to prioritizing the growth of its Bitcoin holdings. The company aims to increase Bitcoin per share for its shareholders, adopting a strategy similar to Microstrategy, which is well-known for its aggressive Bitcoin acquisition approach.

This decision, announced at block height 861,570, follows an internal review revealing that Bitcoin mining has not been a dependable method for increasing the company’s Bitcoin per share. Cathedra highlighted that nine of the ten largest publicly listed Bitcoin miners currently hold less Bitcoin per share than they did three years ago, prompting the need for a new strategy.

To counter this trend, Cathedra plans to focus on more stable revenue streams, such as developing and operating data centers. The profits from these operations will be used to purchase additional Bitcoin (BTC). Other outlined strategies include continuing limited proprietary mining and leveraging financial instruments like Bitcoin-linked derivatives to further increase Bitcoin per share.

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

The company's new strategy emphasizes capitalizing on Bitcoin’s long-term potential as a global reserve asset. By reducing its reliance on mining, Cathedra aims to enhance financial performance and deliver stronger returns for shareholders. This approach mirrors recent moves by Microstrategy, which recently announced a $700 million private offering of convertible senior notes to acquire more Bitcoin, following its purchase of 18,300 BTC just 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.