CandleFocus

Another Bitcoin Miner Adopts MicroStrategy's Playbook of Buying BTC in Open Market

Author: Content Editor
Cathedra Bitcoin (CBIT), a bitcoin mining firm, has announced that it will shift its focus towards providing general data center services and buying bitcoin on the open market instead of mining it. The company cited unpredictable profit margins as the reason for the strategic shift. This move follows the trend set by MicroStrategy and Marathon Digital, who have also turned to purchasing bitcoin on the open market. Cathedra Bitcoin aims to accumulate bitcoin for its shareholders, recognizing that mining is no longer a reliable way to do so due to increased competition, the impact of the crypto winter, and the halving of rewards. The company plans to develop and operate data centers, using profits from this business to buy bitcoin. Additionally, it will explore other options such as debt, equity, and bitcoin-linked derivatives to fund its bitcoin purchases. While Cathedra Bitcoin will still retain bitcoin mined from its existing operations, the pivot to data centers is expected to provide more predictable cash flows and attractive returns on capital.

Related News