TechFlow News, September 17 — According to Cointelegraph, Canadian Bitcoin miner Cathedra Bitcoin announced on September 17 that it will slow down its seven-year mining operations and adopt a new strategy: following in the footsteps of MicroStrategy by aggressively purchasing Bitcoin in the public markets. The company stated that Bitcoin mining over the past three years has failed to generate sufficient value for shareholders, prompting the strategic shift. The new plan will direct all capital allocation decisions toward maximizing the company's per-share Bitcoin holdings. Cathedra believes it is at "the early stage of a decades-long trend," with Bitcoin poised to become the "dominant global reserve asset."
Cathedra plans to develop data operations centers to generate "predictable cash flows" to fund further Bitcoin purchases and will retain all Bitcoin generated from its existing mining operations. The company may issue equity, debt instruments, or hybrid securities to buy Bitcoin, or pledge part of its assets as collateral for loans. Currently, Cathedra holds 23 Bitcoins, worth approximately $2.5 million, ranking 45th among corporate Bitcoin holders. Listed on Canada’s TSX Venture Exchange, the company has a market capitalization of nearly $20 million. However, its share price has dropped 91% since late October 2021—when Bitcoin neared its all-time high—to $0.08 USD (0.059 CAD).
