Cathedra Bitcoin to stop bitcoin mining, follow MicroStrategy strategy

Canadian bitcoin miner Cathedra Bitcoin is halting its seven-year-old mining operations in favor of a new strategy: emulating MicroStrategy and buying as much bitcoin as it can on the open market. In a Sept. 16 “Bitcoin Treasury Strategy Memo,” Cathedra explained that “all capital allocation decisions” under the new plan will now maximize the company’s bitcoin reserves on a per-share basis — the “most important” metric for many large shareholders. Cathedra said bitcoin-based mining operations are not providing enough shareholder value. Nine of the 10 largest bitcoin miners by market value now hold less bitcoin per share than they did three years ago, adding: “At the same time, other public companies have adopted explicit policies to increase the price of bitcoin per share, most notably MicroStrategy, and have been rewarded by the stock market.” Cathedra said it will instead develop data operations centers to generate “predictable cash flows” to buy more bitcoin and will retain bitcoin produced by existing mining operations, suggesting the company will not abandon mining entirely. Data shows that the company currently holds 23 bitcoins, worth $2.5 million, making it the 45th largest corporate bitcoin holder. Cathedra's statement indicates that the company plans to stick to its bitcoin strategy for the long term, noting that it is currently in the "early stages of a multi-decade trend" and that bitcoin will become the "dominant global reserve asset." (Cointelegraph)