According to CoinDesk, Cathedra Bitcoin, a publicly traded company on the TSX Venture Exchange in Canada, has strategically shifted its focus from bitcoin mining to developing and operating data centers. This move comes in response to the increasing challenges faced by the mining industry due to the bitcoin halving and low mining revenue. The Hashrate index, which tracks bitcoin mining revenue, is currently at a relatively low 43 PH/s, with an all-time low of 36 PH/s, causing many public miners to struggle in 2024.
Cathedra Bitcoin aims to maximize bitcoin holdings per share by moving away from mining to create a more sustainable cash flow. This pivot allows the company to continuously acquire more bitcoin, focusing on long-term growth in bitcoin holdings rather than costly operational ventures. The company stated, "Going forward, we will make all capital allocation decisions with the intention of maximizing our shareholders’ per-share bitcoin holdings."
Metaplanet, led by CEO Simon Gerovich, is also prioritizing growth in its bitcoin holdings. Similar to Cathedra, Metaplanet focuses on boosting its bitcoin holdings each month, a strategy that has led to significant gains. Year-to-date, Metaplanet's stock value has increased by 587%, reflecting the market's positive response to its strategic approach.
Bitcoin has emerged as a significant treasury asset for public companies, a trend catalyzed by MicroStrategy's decision to incorporate bitcoin into its corporate treasury in August 2020. This move resulted in an over 800% increase in MicroStrategy's stock value. According to BitcoinTreasuries.net, public companies hold approximately 354,316 BTC, about 1.69% of the total bitcoin supply of 21 million. This trend has inspired several other companies to adopt bitcoin to diversify and protect themselves from inflationary pressures.
MicroStrategy remains a pioneer and the most significant participant in the bitcoin treasury space. Under Michael Saylor's leadership, the company continues to innovate and expand bitcoin adoption. On Sept. 18, it announced the pricing of an $875 million convertible senior notes offering, upsized from an initial $700 million. The notes carry a 0.625% interest rate and mature in 2028. The proceeds will be used to redeem $500 million in high-interest 6.125% senior secured notes at a redemption price of 103.063% of the principal amount, reducing the company's interest payments. The remaining funds will be used to buy more bitcoin. The offering also includes an option for initial purchasers to buy up to an additional $135 million in notes.
In a recent 8-K filing, MicroStrategy introduced an innovative concept called "bitcoin yield," which measures the percentage change in the company's bitcoin holdings relative to its assumed diluted shares outstanding, including both Class A and Class B shares. From January 1 to Sept.12, the company's bitcoin yield was 17%, with a quarter-to-date yield of 4.4%. According to the MSTR-tracker, the bitcoin per share ratio is currently about 0.0012, suggesting that long-term shareholders are experiencing accretive value in their bitcoin holdings.
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