Key facts:
The company will focus on developing data centers and will buy bitcoin with the profits.
Cathedra will use other options such as debt, equity and derivatives to buy bitcoin.
Cathedra Bitcoin, a company known for its focus on Bitcoin mining, has announced a significant shift in its corporate strategy. The company now considers the activity “not a reliable way” to increase its Bitcoin (BTC) holdings. As such, it will be stepping away from the business and adopting MicroStrategy’s strategy of buying BTC on the open market.
In a releasethe company assured that it has been proven that Bitcoin mining is not viable to grow BTC by the shareholders. They also highlighted that nine of the ten largest publicly traded mining companies have reduced their bitcoin per share over the past three years.
They argue that as a Bitcoin miner, “Cathedra has not fared any better by this metric,” recalling that to date they have accumulated just 43 BTC.
“Meanwhile, other publicly traded companies have adopted an explicit policy of increasing bitcoin per share, most notably MicroStrategy (NASDAQ: MSTR), and have been rewarded by the stock markets,” Cathedra argues.
As things stand, they indicated that, instead of expanding their mining operations, they plan to increase their bitcoin holdings. through market shoppingusing the cash flow generated by its lodging operations (hosting) of data centers.
In addition, the company is considering issuing equity, debt and/or hybrid securities to acquire more bitcoin, using the income resulting from these financial operations.
However, Cathedra’s new approach does not imply a complete abandonment of Bitcoin mining. “We will continue to retain bitcoin produced by our existing proprietary mining operations,” the company clarified.
Following Michael Saylor
This move by Cathedra aligns with the strategy adopted by MicroStrategy, led by Michael Saylor, who has turned the company into one of the largest corporate holders of BTC.
This week, MicroStrategy announced a new BTC purchase, valued at around USD 1.1 billion, as reported by CriptoNoticias. So far, that company has 244,800 BTC in custody. And the intention is to continue accumulating.
After the purchase, Michael Saylor’s company advertisement the launch of a new issue of convertible bonds for 700 million dollars, with the goal of using the proceeds to redeem existing debt and buy more bitcoin.
It is not just Cathedra that is following this path. Marathon Digital Holdings, for example, bought 250 million in bitcoin last Augustshowing that the strategy of buying BTC directly is gaining ground among mining and technology companies.
The influence of Michael Saylor’s strategy is not limited to the United States. In Japan, companies such as Metaplanet have also begun to adopt similar policies, reflecting a global trend towards the direct accumulation of bitcoin as a store of value.
Cathedra Bitcoin’s decision to reposition itself towards data center development and direct bitcoin purchasing marks a milestone in the industry. This strategy, inspired by the steps of MicroStrategy, reflects an adaptation to the realities of the cryptocurrency marketwhere direct purchase of bitcoin can offer more predictable and attractive returns than traditional proof-of-work mining.
This article was created using artificial intelligence and edited by a human on the editorial staff.
